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Seth

Got PPR - What about my $$

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Seth

Hi all,

I know this is addressed in part here and there in other threads, but some of it seems to be very outdated.

We got our PPR, we have all our savings in an FNB account here.

 

1. Do I need to close my FNB account at all?

2. Do I withdraw a bag of cash, Scrooge McDuck style, and haul it over in a briefcase?

3. Do I open up a Canadian bank account (RBC for example) from SA and transfer all my $$ over, then close my FNB account?

4. Does SARS need to get involved? (I don't like those people...)

5. What, and why, and do I, have to do Economic Emigration?

 

Hope someone can explain :) Just don't want to get stranded in CA without me loonies :P 

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fry

Hi @Seth,

Congrats on the PR!

I will answer each of your questions, but it seems you want to know if you need to arrive with your cash in hand when you do your landing trip? If this is the case, no you do not need to have a bag of cash, when we landed in December in Toronto they did not even ask for proof of income. We did have an updated printout of our bank account statements ready just in case. We then opened bank accounts while we were there and then worked out how to move our cash across. That being said we did a soft-landing and are only moving in May.

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1. Do I need to close my FNB account at all?

This is your choice. You do not need to do it right away. I have read on this forum that you can close it without being physically present. I would personally leave it open so that you can transact with it once you arrive and until you get everything setup in Canada.

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2. Do I withdraw a bag of cash, Scrooge McDuck style, and haul it over in a briefcase?

We generally just travel with our credit and debit cards. Once we had our bank accounts open we moved the money across from SA. We opened accounts once we were in Canada, but there are ways to open an account from SA.

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3. Do I open up a Canadian bank account (RBC for example) from SA and transfer all my $$ over, then close my FNB account?

This seems like the general plan. I would make sure when opening the RBC account that you get benefit of the new-comers benefits like no banking fees.

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4. Does SARS need to get involved? (I don't like those people...)

If you are moving more than R1million then yes they would need to get involved. Below R1mil you should be able to make use of your discretionary allowance

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5. What, and why, and do I, have to do Economic Emigration?

That is a hot topic at the moment. SARS is implementing a change (March 2020) that says that if you earn more than R1.25mil per year you will be taxed in SA on the amount over R1.25mil. (very simple version, I am not an expert). So you need to work out if this will impact you. Financial Emigration is a way of telling SARS that you are no longer financially active in SA and they should not tax you. It is not necessary though and can cause you to loose a fair chunk of change. This is because you have to close all accounts (Bank, Investments, RA, etc.) in order to achieve this, each of these has some cancellation clause that costs money.

Hope it helps.

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MaryJane

Hi @Seth

Just to build more on @fry's comments re: closing of FNB account...

If you do decide to leave the monies in SA, make sure you have proper POA in place for someone else (someone that you trust) so that should something go wrong with the account, you will still be able to access the funds through this trusted person who can deal with the bank for you. I know of someone who had some issues after they landed in Canada (the bank marked the account inactive after so many months) and it was a nightmare to sort out remotely. Luckily from my end, I remembered this and when I left, I kept two small accounts open and these two accounts transferred to each other monthly...voila, monthly activity created. It was a bit pricey because now I had to keep two accounts open but I wasn't quite ready to move all my monies and close the accounts at the time.

Another thing to remember is that if you keep the SA bank account open, you need to set up that your online banking sends the OTP pin to your email address. 

I'm one of them who managed to close the FNB accounts after many years of not being in SA (just last year in fact). SARS was not involved at all. Please note I did not go through financial emigration. There was no need at my end as I did not hold anything in SA, no RAs nor am I expecting an inheritance somewhere down the line. I have since de-registered from SARS. I wrote them (nicely!) and they took me and my husband off.

Hope this helps. Happy landing!

 

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