This is a guest post by Fazlin Karriem .
Emigration can be a daunting experience, and rightly so. Because it tends to be a once-off undertaking for most, should you make the big move overseas it will presumably be your first. Unlike merely working overseas, relocating or emigrating have their own, myriad challenges. As such, I have compiled the following list.
Once you have settled on a country to which you wish to immigrate, it is worth deliberating whether you wish to formally emigrate from South Africa or not. Don’t fret the term ─ formal emigration is merely a financial process which allows you to move assets, or their market value, to a specific bank account following your emigration out of the country. This decision can be costly, and only really worth undertaking if you have a large sum of assets you wish to move overseas.
Look for jobs and accommodation in the new country you will call home. Unless you’re of retirement age, a select number of countries require that you provide proof of a job record, so it’s wise to have an employment opportunity lined up once you’ve arrived in your new homeland.
Should you opt to formally emigrate you will deal primarily with the South African Revenue Services and the South African Reserve Bank. The process is two-fold: obtain tax clearance from the former, and a foreign capital allowance account from the latter. Each process is far more detailed and intricate than presented here, with everything from your tax being paid up, to bank cards being destroyed.
Bear in mind that formally emigrating does not relinquish your citizenship ─ it is merely exporting your assets to your new country of residence.
Visit your bank and request a M.P.336(b) form from a consultant. The consultant will take you through the application process to get the ball of your formal emigration rolling. Your bank will act as an ‘Authorised Dealer’ working in concert with the South African Reserve Bank to formalise your exit financial exit from the country. The process requires various forms of documentation to be submitted to prove your person, investments and other assets.
Once all your legal and financial matters have been wound up you will be issued with a ‘blocked account’ through which all your capital will flow offshore. The maximum an individual can hold in foreign capital allowance is R10 million and R20 million per family unit. However, to accommodate for the rate of exchange and cost of living in your country of choice, it is advisable that you spend at least half of your first year saving up to supplement your standard of living and provide for emergency expenses.
Sell your car and furniture to add to your emergency savings cushion. This will help you through the transition process once you’ve left. Give old clothes away to charity, or as a farewell party, have all your friends and family come over to buy your leftover belongings. It’s a great way to raise some funds without directly asking for help.
Here are some more articles you can read on emigrating:
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