Relocating to South Africa – Immigration Information
Whilst many foreigners dream of relocating or moving to South Africa, many foreigners are actually taking a chance and moving their families and lives to our beautiful country. As this process can often be difficult and tedious, more so if you are not correctly informed prior to your immigration process, there are many aspects of relocating to Africa South Africa that is required to be thought through before the new adventure can begin.
Many foreigners only realize the amount of matters that have to be sorted through and arranged once they arrived in our stunning country. There is no need to stress, if all information is at least known before arriving, this will save you many nights of worry and many more days to enjoy our sunshine, beaches, mountains and beautiful flora and fauna with yourself or your family.
Transferring money, bank accounts, exchange control, taxation and investments information
– Transferring Money into South Africa
For a foreigner wanting to reside in South Africa, or even if a foreigner wants to invest in the country in one way or another, an agent or consultancy is always the best to approach for the finer details regarding best exchange rates when transferring money, investments, transferring of money and tax implications.
– Bank Accounts in South Africa
Opening up of bank accounts is a simple process, provided the correct documentation is supplied to the relevant consultant. If a foreigner wants to obtain a personal/individual bank account (while on a visitors visa), a “non-resident” account can be opened for that person. Whilst these accounts can have all the features of normal banking account, the “non-resident” accounts are restrictive in as much as they cannot generally receive deposits in Rands. Once on a temporary residence permits, these accounts are changed to “resident” accounts. It is best to speak to a Bank consultant to get the best possible service and views.
The foreigner’s closed corporation can obtain a business account, there would be no currency restrictions in terms of Rand deposits, as the closed corporation is viewed as a legal identity in its own right and in the foreigner’s case, is incorporated in South Africa. To receive the best service and required documentation, speak to a banking consultant or an agency that can assist with this nature of services.
– Exchange Control
Upon transferring money to South a foreigner will be confronted with the exchange control regulations in South Africa.
South African Exchange Control Regulations are a set of laws controlling the in and outflow of money in South Africa. An authorised dealer in every major South African bank are required to make sure on behalf of the Reserve Bank that incoming and outgoing money complies with the regulations.
A foreigner can transfer an unlimited amount of money into South Africa. As long as the foreigner transfers the capital via a bank within South Africa, it will get registered with the Reserve Bank.
There are limitations in place when it comes to transferring capital out of South Africa.
The rules and limitations for a foreigner depend on the status for exchange control purposes when the person arrives in South Africa. The Reserve Bank distinguishes between foreign nationals, temporary residents, immigrants and South African citizens.
Since the status of people relocating to South Africa varies according to the kind of permit they receive, individual advice is necessary.
It should be noted that it is not correct that foreigners relocating to South Africa cannot take any of the money they brought into the country out again. There are rules and regulations, but they do not permit the retransfer of capital introduced into South Africa.
South Africa has a residence based tax system, which means that all tax residents are taxed on their worldwide income, irrespective of where it was earned.
Even in case that a foreigner is not classified as a tax resident in South Africa from the start, the foreigner will have to pay tax on income generated from a source within South Africa.