If I emigrate from South Africa, do I have to relinquish my South African citizenship?
No. Emigrating from South Africa formalises your exit from South Africa for exchange control purposes. It does not mean that you have to relinquish your South African citizenship. You can retain your South African passport.
I have been living abroad for a number of years, how do I formalise my emigration?
In terms of exchange control policy, private individuals (natural persons) who reside permanently in a country outside the Common Monetary Area may, should they require to do so, formalise their emigration, for exchange control purposes, by completing a Form M.P.336(b) and submitting the form and supporting documents to a South African Authorised Dealer, i.e. commercial bank.
Your emigration should be formalised through a local commercial bank of your choice in South Africa as follows:
(i) Complete a Form MP336(b) – Emigration: Application for foreign capital allowance. The form is available from the South African Reserve Bank website www.resbank.co.za
by following the links: Publications and Notices > Forms > Filter By Category: Financial surveillance and exchange controls and Year: current year > Form MP336(b) Emigration: Application for foreign capital allowance.
(ii) The Form MP336(b) must be accompanied by a printed tax compliance status verification result obtained via the SARS Tax Compliance Status (TCS) system reflecting your compliance status including a breakdown of your remaining capital assets held in South Africa.
(iii) Emigration is based on the Form MP336(b), therefore, you will also have to provide SARS with a certified copy of the completed Form MP336(b).
(iv) If you have resided permanently outside South Africa for a period longer than five years and you do not possess any assets other than an inheritance or insurance policies, it would not be necessary, for exchange control purposes, to obtain a tax compliance status verification result.
(v) Submit the Form MP336(b) and the tax compliance status verification result, if applicable, to your bankers. You will also have to submit any other documentation as required on the Form MP336(b), which includes a copy of the permanent residence permit, if you have been granted permanent residence abroad.
What facilities will I qualify for when I emigrate?
Emigrants qualify for the following facilities:
(i) Foreign Capital Allowance – R10 million per adult per calendar year or R20 million per family unit per calendar year.
(ii) A travel allowance of up to R1 million per adult and R200 000 per child under the age of 18 years. The travel allowance may not be accorded more than 60 days prior to departure. (iii) Export of household and personal effects, motor vehicles, caravans, trailers, motorcycles, stamps, coins and minted gold bars (excluding coins that are legal tender in South Africa) within an overall insured value of R2 million.
What is an emigrant's capital account?
Once an emigrant's emigration status has been recorded, all capital transfers must flow offshore via this account.
Any cash balances remaining after the appropriate facilities have been granted and all capital payments accruing thereafter to the emigrant, as well as the total proceeds of any asset subsequently sold, will be required to be credited to the emigrant’s capital account (i.e. current, savings or interest-bearing deposit account held with an Authorised Dealer, i.e. commercial bank in South Africa).
What will happen to my remaining South African assets?
(i) The remaining South African assets of the emigrant must be brought under the physical control of the bank that finalised the emigration to ensure that all capital accruing after date of emigration and the proceeds of any asset subsequently sold are placed to the credit of the emigrant's capital account.
(ii) Such funds may be utilised locally for any purpose.
(iii) The Financial Surveillance Department of the South African Reserve Bank will, on application, submitted via an Authorised Dealer, i.e. commercial bank, consider requests to transfer the emigrant's remaining liquid assets or the export of quoted/unquoted securities in lieu of cash, exceeding the foreign capital allowance limits.
I have emigranted from South Africa. Can I transfer the proceeds from my insurance policy directly to my overseas bank account?
Yes. The proceeds from insurance policies may be transferred directly to the emigrant abroad where the emigrant has no bank account in South Africa, provided the person’s emigration has been formalised and that the foreign capital allowance limit will not be exceeded.
Who do I submit my completed Form MP 336(b) – Emigration: Application for foreign capital allowance to?
The completed Form MP 336(b) and supporting documents must be submitted to an Authorised Dealer, i.e. commercial bank in South Africa at which you bank, or any commercial bank in South Africa if you no longer have an account at a local bank. The local bank will be in a position to assist you in finalising your emigration as far as exchange controls are concerned.