Getting a UK visa is only half of leaving South Africa. The other half is money: your tax residency, your retirement annuity (RA), and how much you can move offshore. This is general information, not tax advice. The rules are complex and individual, so speak to a tax practitioner or emigration specialist before you act.

Is "financial emigration" still a thing?

No. Financial emigration through the South African Reserve Bank was replaced on 1 March 2021. Today the question is simply whether you're still a South African tax resident, and that's dealt with by SARS.

People still use the old term, and some service providers still advertise "financial emigration". What they mean now is tax emigration: formally ceasing your tax residency with SARS.

Does moving to the UK end your SA tax residency?

Not automatically. You stay a South African tax resident until you actually cease to be one under SARS's tests, usually by moving your life abroad permanently (and, where both countries claim you, under the UK–SA tax treaty).

Ceasing residency properly matters because:

  • as an SA tax resident, SARS taxes your worldwide income, including your UK salary (with relief for UK tax paid), and
  • you need to be a confirmed non-resident to cash in your RA before 55.

Once you've ceased residency, you declare it to SARS, file your final resident return, and can get a non-resident confirmation letter from SARS.

Don't just stop filing tax returns. If SARS still has you down as resident, you can end up with tax and penalties on income you thought SARS couldn't touch. Formalise it.

What is the exit tax?

When you cease SA tax residency, SARS treats you as if you'd sold most of your worldwide assets the day before. You pay capital gains tax on any gain, even though you didn't sell anything.

Included (taxed on exit)Excluded
Shares, unit trusts and other investments (local and offshore)South African property (taxed later, when you sell it)
Foreign propertyRetirement funds, including RAs (taxed when withdrawn)
CryptoCash
Krugerrands and similar coinsMost personal-use assets

How much? Only 40% of the net gain is taxed, at your marginal rate, after the R50,000 annual exclusion. The maximum effective rate is 18% of the gain (40% × the 45% top rate).

When you sell SA property as a non-resident, the buyer usually has to withhold 7.5% of the price (for sales above R2 million) as an advance on your tax. Plan for that cash being held back.

When can you cash in your retirement annuity?

Before age 55, you can only withdraw your RA as an emigrant if both of these apply:

  1. You've ceased SA tax residency, confirmed by SARS, and
  2. You've been non-resident for at least 3 uninterrupted years.

Specialists differ on when the 3 years start: some count from when your residency actually ended, others from when it's formally recorded with SARS. If you left more than 3 years ago and only formalise it now, you may be able to withdraw sooner than you think, so get a tax practitioner to confirm your dates.

Part of your RA (two-pot system)Access after emigrating
Savings component (a third of contributions since 1 September 2024)Once per tax year (minimum R2,000), even before the 3 years are up
Retirement and vested componentsOnly after 3 years' non-residency, or at 55

How is an RA withdrawal taxed?

A withdrawal before 55 is taxed as a lump sum using SARS's withdrawal tables, which are less generous than the retirement tables. The fund applies for a SARS tax directive and deducts the tax before paying out the balance.

The taxed amount can then be sent abroad, subject to the transfer rules below.

How much money can you move offshore?

AllowancePer adult, per calendar yearWhat's needed
Single discretionary allowance (SDA)Up to R2 millionNo SARS approval; just your bank
Foreign investment allowanceUp to R10 million moreSARS approval for international transfers (the "AIT" process) plus your bank's checks

A couple can move up to R24 million a year combined if everything's done correctly. Card spending abroad and online foreign currency purchases also count towards your SDA.

Larger transfers need paperwork. For the foreign investment allowance, expect to provide bank statements, a statement of assets and liabilities, and proof of where the money came from. Former residents face extra checks, including the non-resident confirmation letter and exit-tax calculations.

Do you need help with this?

For most people, yes. Tax emigration, exit tax and RA withdrawals involve SARS directives and calculations that are easy to get wrong. A registered tax practitioner or a specialist emigration-finance firm can handle the SARS process, work out your exit tax and arrange the RA withdrawal and transfer.