South Africa’s Financial Future in Limbo – Should You Exit Now?

The initial disbelief and shock on the postponement of the 2025 Budget Speech may have made way for cooler heads and the hope that more deliberations will deliver better budget outcomes for vulnerable citizens and a platform for economic growth, but many South Africans are questioning whether now is the right time to move their funds offshore.

For those choosing to emigrate, a key consideration is tax residency status. Tax emigration isn’t just about physically leaving the country—it requires formally notifying the South African Revenue Service (SARS) of your intent to cease tax residency. This crucial step ensures compliance with international tax laws while mitigating ongoing tax obligations in South Africa.

For South African expats, accessing retirement annuity (RA) and preservation funds becomes possible after the three-year lock-up period. This withdrawal, however, is contingent on obtaining confirmation of your non-tax residency status from SARS.

Early Lump Sum Retirement Withdrawals

Introduced in March 2021, the three-year lock-up rule states that South Africans who cease their tax residency must remain non-resident for at least three consecutive years before they can access and withdraw their full retirement (RA) and preservation funds.

Read more in our recent article, “South Africa’s Financial Future in Limbo – Should You Exit Now?”