Emigrating or Working Outside South Africa

You have spent months contemplating making your big move – you know where you’re going to go, you know what you’ll be doing when you get there, it’s all looking great, but… do you understand the financial implications of emigrating or working outside South Africa? As a South African who has done exactly that, and expanded her business in her new homeland, Annja Louca is ideally placed to advise you on what to do, and what not to do.

South Africa Emigration Changes 2020

Briefly, (well, as briefly as we possibly can), these changes affect:

  • Individuals classified as South African Residents working temporary abroad and who earn more than R1 million, especially if there isn’t a double taxation agreement in place.

  • South African residents working abroad for short periods of time and earning more than a R1million and not paying enough foreign taxes or any taxes

  • Anyone financially emigrating, which means that you change your status to being non-resident. You need to obtain a tax clearance and the status will be recorded with the South African Reserve Bank and SARS.

  • SARS will use the law against people that work abroad and have not formally financially emigrated. We have noticed that on the new tax returns there are specific questions around residency and foreign income.

Residency Test

Now, let’s go back to the residency test:

If a person is not in South Africa for the year of assessment (so the physical presence test cannot be applied), a person is still regarded as South African if:

  • Primary home is in South Africa – this is driven by intention

  • Intention is to come back to South Africa

  • Employment is still in South Africa

  • Personal belongings are in South Africa

  • Where their family is situated

If ordinary residence cannot be determined, the physical presence test in the last 5 years needs to be considered and how much time has been spent within South Africa. It is important to understand that having SA citizenship or a passport does not make you a SA tax resident.

It is a good idea to speak to your financial advisor about your situation and your plans for the future. Getting it right from the start can make your financial journey much easier.

South Africans in Scotland – What You Need To Know

There is a lot to consider and deal with when moving from South Africa to Scotland. Luckily for you, Annja has done exactly that, and is well suited to helping you with all the financial issues you will come across. Here are some useful links for you and your business, for what you need to know about moving to Scotland from South Africa.

Entering the UK and Visa Requirements for South Africans

  • Entry requirements to the UK

  • Foreign travel checklist

  • Coming to the UK

  • Visa fees

Advice and Discussion on Living in the UK

  • Discussion on moving to the UK

  • Scotland school system explained

  • Scotland school curriculum and qualifications

  • How to get your NI number

Tax Info

  • Financial emigration and tax status

For advice on moving your business from South Africa to the UK

Reliable accounting for small businesses means more than ticking boxes; it’s about understanding your financial position, planning ahead, and reducing risk. At Anlo Financial Solution, we will help you organise your accounts, reduce errors, and keep up with changing tax requirements, so you can focus on managing and growing your business with confidence.

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