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Financial Emigration vs Tax Emigration

“I didn’t know where to start with tax emigration. The forms, the approvals, the back-and-forth with SARS — it felt overwhelming. Currency Assist made it simple. They walked me through every step and got it done faster than I expected.”

— Client, now based in the UK

Tax & Residency

Not so long ago, if you wanted to formally cut financial ties with South Africa, you had to go through a process known as financial emigration. Managed by the South African Reserve Bank, it was often slow, technical, and frustrating.

But things have changed. Since March 2021, financial emigration has been replaced with a simpler — yet still challenging — process called tax emigration.


What’s the difference?

When you apply for tax emigration, you’re telling SARS you no longer qualify as a South African tax resident. That means:

  • You no longer need to declare your worldwide income above R1.25m to SARS.
  • You’ll only be taxed on South African-sourced income.
  • You lose access to your SDA (Single Discretionary Allowance).
  • Any funds you move offshore now require Approval for International Transfer (AIT) from SARS.


SARS will look at two tests to decide if you’re still a tax resident:

  1. The ordinarily resident test – Is South Africa still your true home?
  2. The physical presence test – Have you been physically present in SA for more than a set period?


If you don’t meet these tests — and you’re recognised as a tax resident elsewhere — you can apply to change your status.


Why this matters

For South Africans living and working abroad, getting this right can save a lot of money and prevent future headaches. But here’s the catch: the process is anything but straightforward.

That’s where Currency Assist steps in.


How we help

At Currency Assist, we’ve built a team that understands both the technical details and the practical realities of tax emigration and exchange control. We:

  • Save you time and costs by handling the legwork.
  • Provide a full-service solution, from paperwork to approvals.
  • Guide you step by step, so you know exactly what’s happening.


Your next step

If you’re abroad — or planning to move — and need to update your status with SARS, let us take the complexity off your shoulders.

All it takes is a quick online form. Once completed, one of our consultants will reach out and guide you from start to finish.

“I thought tax emigration would mean months of delays. Instead, Currency Assist gave me clarity within days and had my approval sorted far quicker than I imagined.”

— Client, now based in Australia

Have a Question about Emigration or Tax?

Please fill in the fields below and one of our team will respond as soon as we can.

Currency Assist Insight Series

Read on, and discover how Currency Assist can make your international money matters simpler, faster, and safer — so you can focus on what’s ahead, not on the red tape behind.

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