Emigration choices and challenges for South Africans

In today’s globalised world, South Africans are increasingly viewing “home” as a fluid concept. The ability to live, work, or temporarily settle abroad raises questions about identity, belonging, and what it means to be South African in a global context. The decision to emigrate or temporarily relocate is not just practical, it touches on personal, cultural and economic factors that extend beyond national borders.

Many South Africans are exploring a middle path, opting for temporary placements or remote work opportunities abroad. With work now possible from almost anywhere, they seek international experience and higher earnings while maintaining ties to their homeland. This shift has implications for South Africa’s talent pool, potentially draining skilled workers. However, these individuals may return home enriched by their international exposure, which could ultimately benefit the local economy.

Emigration is a life-altering decision with significant legal, cultural and emotional implications. Moving abroad involves adapting to foreign laws, new lifestyles and ensuring that children receive an education aligned with their future needs. The sense of identity and belonging can also be deeply impacted as individuals settle into new surroundings.

In contrast, temporary relocation or remote work offers a more flexible approach. This trend appeals to those seeking professional growth and adventure without fully cutting ties to South Africa. Remote working abroad allows for international experience without the permanence and complexity of emigration.

Those who do emigrate face many challenges, such as navigating visa applications, adapting to foreign cultures, and managing homesickness. While sociopolitical uncertainties in South Africa drive some to seek better opportunities, others are motivated by a sense of adventure or personal growth. Whatever the reason, emotional difficulties often play a significant role in the process.

The benefits of working abroad are numerous. South Africans can gain access to new skills, business practices and networks, which can greatly enhance their career prospects. Financially, remittances sent back to family members or invested in South Africa help maintain a connection with home. In some cases, individuals save enough money abroad to return and start businesses or invest in local opportunities.

While some may view emigration as a 'brain drain', there is also the potential for positive impact if these individuals return home with new knowledge and skills

While some may view emigration as a “brain drain,” there is also the potential for positive impact if these individuals return home with new knowledge and skills. Many South Africans who work abroad remain connected to their homeland through technology, dual residency options, and frequent travel. A growing trend of “reverse emigration” has emerged, with those who have gained experience and financial stability abroad choosing to return home to contribute to local development.

A key concept in South Africa’s emigration landscape is the “South African resident temporarily abroad”. These individuals have left the country but do not intend to settle permanently abroad. Importantly, they remain South African tax residents and are subject to tax on their worldwide income. However, they can benefit from allowances such as the single discretionary allowance of R1m per calendar year and the Foreign Investment Allowance (FIA) of up to R10m annually, provided they remain tax compliant with the South African Revenue Service (Sars).

It is crucial for residents temporarily abroad to maintain tax compliance and declare any changes in residency status to avoid unforeseen tax liabilities. Should they choose to settle abroad permanently, they must go through the formal process of ceasing to be a tax resident, which may trigger an “exit tax” on their assets.

For those considering permanent emigration, the process has become more complex, especially after March 1 2021. Previously, financial emigration required approval from the South African Reserve Bank. This allowed individuals to transfer assets abroad and access retirement savings early. However, post-2021, the focus shifted to tax residency under Sars. South Africans intending to emigrate now need to declare their intent to Sars and may be subject to capital gains tax upon leaving.

The introduction of an “exit tax” and the requirement of an “Emigration Tax Clearance Certificate” have made financial planning essential for anyone considering emigration. Consulting tax professionals is crucial to navigate these regulations and ensure compliance with tax obligations. Working with an authorised dealer (a commercial bank) is necessary to manage the regulatory and financial aspects of transferring funds abroad, ensuring compliance with South African exchange control regulations.

Emigration is no longer a permanent goodbye to South Africa. Whether temporarily relocating or settling abroad, the world has become an interconnected space where people have the flexibility to choose their paths. Living and working beyond South Africa’s borders should not be seen as a loss but as an opportunity to expand horizons, grow personally and professionally, and potentially return home with new skills and experiences.

For South Africans, the choice to live abroad is about more than finding new places to call home. It’s about embarking on a global journey that, with proper planning and thoughtful decisions, can benefit both the individual and the nation.

• Bezuidenhout is the founder of international trade/banking FSP BeztForex.co.za and the global trade AI platform Zynched.com.