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Two staff discuss emigration

How green is the grass offshore?

Understanding emigration before you make the move.


If you’re thinking of leaving South Africa, it’s worth taking time to understand what’s involved before making the move. Emigrating from South Africa is a complex process, the reasons for which often run deeper than immediate frustrations. While loadshedding, water cuts, crime statistics, and political uncertainty frequently trigger the decision, the underlying motivations usually centre around creating long-term stability and opportunities – particularly for the next generation.

Parents talk about better education systems and career prospects for their children. Professionals might look for an environment where they can advance their careers faster, and entrepreneurs often want markets where regulations feel clearer.

But these aspirations often collide with complicated realities. South African expats generally find moving abroad can be frustrating – you have to navigate visas, prove you’re financially stable, find the right job, and manage all the logistics of moving house.
If you’re going to be successful, you need to plan carefully, from understanding tax implications and timing asset transfers, to restructuring insurance coverage and managing cross-border banking relationships.
 

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Rebuilding networks and alliances

Perhaps the most significant challenge, which we may only realise in hindsight, is the loss of our immediate networks. In South Africa, these networks are more than just social connections – they're an intricate support system built over decades (and even generations). That trustworthy mechanic who gave you preferential rates becomes a full-price service at an unknown workshop. The neighbour’s school pickup becomes expensive after-care. The informal business intelligence from industry connections transforms into paid consulting services.

Simple tasks become complex when you're learning new systems and navigating different cultural nuances.

The impact of losing these networks can feel different depending on the generation. Children often find social fluency easier in a new place, even as their parents still to try work how to navigate a new culture. This generational integration gap can create family tensions but also opportunities, as children frequently become cultural bridges for their parents, while parents provide the stability of cultural continuity at home.

Depending on where you’re going, integration is often harder than we realise, especially in today's increasingly protective societies. Success requires more than just learning new social codes, but what some psychologists call cultural frame switching – the constant mental effort of translating not just language, but behavioural cues and social expectations. Even in traditionally welcoming countries, immigrants increasingly find themselves navigating subtle barriers to true belonging.
 

 

Understanding the real costs of a new country

Be wary of focusing on salary comparisons using simple exchange rates. According to The Economist’s Big Mac Index (showing how burger prices differ across borders), a Big Mac in South Africa costs around R54, while the same burger costs roughly £4.79 (R113) in the UK and AU$7.50 (R147) in Australia.

While not a perfect translation of costs, if you scale this up across all living expenses, a three-bedroom apartment that rents for R20,000 in Johannesburg might cost R70,000 in London. Private school fees of R12,000 a month in South Africa could escalate to R30,000 or more internationally.


 

Understanding your financial obligations

  • Tax

    When you emigrate, there are some complex tax considerations to consider, depending on your individual circumstances. South African tax residency doesn't simply end when you board your flight, and many emigrants are surprised to learn they may still have tax obligations in South Africa even after leaving.

    • If you live in South Africa, and are considered a South African tax resident, subject to a double taxation agreement (“DTA”), you would be taxed in South Africa on your worldwide income and gains. In contrast, as a bona fide non-tax resident who doesn’t meet SARS’s tax residency tests you would only be taxed in South Africa on a source basis. In other words, you would only pay tax in South Africa on your South African-sourced income like rental income, dividends, or the disposal of property, for example.
    • Importantly, many aren’t aware that ceasing South African tax residency triggers a deemed capital gains tax event on your worldwide assets (subject to certain exclusions). It is crucial to consult a suitably qualified tax professional in both South Africa, and your new country of residence prior to emigrating to avoid unexpected tax implications.
  • Moving wealth across countries

    Moving wealth also requires careful orchestration.

    • South African residents have access to both the R1 million discretionary allowance and the R10 million foreign investment allowance annually. If you need to move more than R10 million offshore, there is a more stringent process in place, and you’ll need approval from the Financial Surveillance Department who may look at sources of funds and make assessments in terms of anti-money laundering and counter-terrorism financing requirements.
    • Retirement funds have their own complexities. Most South African retirement products can only be fully externalised if you can prove non-residency for a consecutive period of three years. But you’ll need careful documentation of your continued non-residency status. It is important to be mindful of the tax treatment of the respective product in both South Africa and your new country of residency, ensuring that you comply with your tax obligations in both jurisdictions.
    • Different rules apply for pension and provident funds if you’ve already left your employer, so in this case, it is best to engage with a financial adviser. What’s most important is understanding that retirement planning isn’t the same in every country. Some countries have pension systems that don’t recognise foreign retirement savings in the same way, and the investment options in your new country may be very different to the way South Africa regulates retirement funds.
  • Life insurance polices

    Some South African life insurance policies may have geographic and residency restrictions that affect coverage once you're living abroad depending on where you emigrate to. Contact your insurer about this, but make sure you restructure your premium payments to account for exchange rate fluctuations. The key is planning these transitions well before you leave.

    • Consider securing comprehensive coverage while you still have the most options available to you – waiting until after you've moved can significantly limit your choices and increase costs.
    • For more seamless protection, it may be worth maintaining your South African policies alongside your new international coverage while you’re transitioning.

Your perspective shapes your reality

Each country presents its own trade-offs, but it’s often a matter of perspective. South African's may admire the UK for its efficient public services and easy access to Europe, but locals will complain about NHS waiting time and high living costs. We may admire Australia for its organisational efficiency and law enforcement, whereas locals will debate the “nanny-state” regulations and geographical isolation from the rest of the world.

And as much we dream of integration, it’s often harder than we realise, especially as we learn new social codes.

But this doesn't mean the dream can’t become a reality. It just means being aware that “starting again” and finding a new community requires resilience.

If you’re thinking about joining the list of South Africans emigrating, thorough planning and realistic expectations will be key to success, knowing that while you can't replicate decades of established networks in a few months, you can gradually build new support systems. Ultimately, success isn’t about leaving or arriving – it’s about rebuilding. 

FAQs

  • How to become a non-tax resident of South Africa

    To become a non-tax resident of South Africa, you must cease tax residency by breaking both the ordinary residence test and the physical presence test. This typically involves emigrating, proving long-term residence abroad, and notifying SARS. Formal tax emigration may also require financial disclosures and clearance from SARS.

  • How does emigration affect South African tax obligations?

    Emigrating from South Africa reduces your SA tax obligations, shifting you from worldwide income taxation to only being taxed on South African-sourced income. However, you'll face exit tax on worldwide assets, capital gains tax on local property, and withholding tax on dividends.

  • Is moving abroad worth it?

    Moving abroad can be life-changing, offering better opportunities, safety, and quality of life—but it comes with challenges like cultural adjustment, financial complexities, and leaving support networks behind. Success depends on planning, mindset, and adaptability. If your goals outweigh the sacrifices, it’s worth it. Otherwise, reconsider your motivations carefully.

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  • Disclaimer

    Disclaimer

    The information contained in this video is intended for information purposes only and should not be regarded as financial advice.

    Investec Life Limited, a member of the Investec Group, is a licensed Life Insurance Company and an authorised Financial Services Provider (FSP number 47702). Terms and conditions apply.

    Investec Wealth & Investment International (Pty) Ltd, registration number 1972/008905/07. A member of the JSE Equity, Equity Derivatives, Currency Derivatives, Bond Derivatives and Interest Rate Derivatives Markets. An authorised financial services provider, license number 15886. A registered credit provider, registration number NCRCP262.

    Focus and its related content is for informational purposes only. The opinions featured on the site are not to be considered as the opinions of Investec and do not constitute financial or other advice. The information presented is subject to completion, revision, verification and amendment.

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