Part 3: Managing Your SA Assets as a Non-Resident

Welcome to Part 3 of our expat tax guide. You’ve done it: forms filed, exit tax handled, and you’re officially a tax non-resident of South Africa. That’s one huge box ticked.

But here’s the thing: ceasing your tax residency isn’t the finish line. It’s the starting point of a whole new chapter. Your new status changes how you interact with your South African assets, investments, and financial products. These are the rules to make sure your money keep working for you, ensuring you stay compliant in South Africa, even though you’re now establishing your new place elsewhere in the world.

Read on.

Managing Your Remaining South African Assets

You’re officially a non-resident. That doesn’t erase your South African holdings, it changes how you manage them. The smartest expats know that understanding the rules is the difference between efficiency and unexpected costs.

Consider the following:

Property

Owning property in South Africa as a non-resident comes with obligations that won’t go away. Rental income continues to be taxable, which means your tenants’ payments must be properly reported and declared to SARS. Non-compliance can lead to penalties or interest charges, even if you’re thousands of kilometres away.

When it comes time to sell, non-resident withholding tax (NRWT) applies to the proceeds. The rate is typically 7.5%, but professional structuring and planning can ensure the amount is accurate and reduces the risk of overpayment. Early preparation also gives you the flexibility to manage timing, transfer procedures, and estate considerations without stress.

Working with an expert ensures your property is not just compliant but optimised. Nolands advises on strategies such as timing the sale, calculating and tax reporting of rental profit or losses as well as capital gains or losses, and coordinating with local conveyancers and SARS to safeguard your investment.

Investments

South African-sourced dividends, interest, and capital gains don’t disappear because you’ve moved abroad. As a non-resident, the tax rates are often different - sometimes more favourable - but the landscape can be nuanced. For instance, dividends are generally subject to a withholding tax of 20%, while interest income may be taxed at 15% for non-residents, and capital gains follow specific rules depending on your status and asset type. Double Taxation Agreements (DTAs) can reduce exposure and prevent you from paying tax twice on the same income. The challenge is knowing which treaty applies and structuring distributions correctly.

Professional oversight ensures you capture every opportunity to optimise returns while remaining fully compliant. Nolands helps track your SA-sourced income, manages reporting, and aligns investment timing and withdrawals with tax obligations. The goal is simple: maximise after-tax returns and minimise surprises.

Bank Accounts

Maintaining South African bank accounts as a non-resident is often essential. It can handle rent, property expenses, investment contributions, and other local obligations. However, being a non-resident changes the requirements for certain transactions. Banks may request proof of non-residency, tax clearance, or additional documentation for transfers, account updates, or large withdrawals.

Organisation is critical. Consolidating accounts, keeping balances clear, and maintaining detailed records reduces friction when moving money abroad or managing obligations locally. In some cases, having a trusted local contact or power of attorney can simplify interactions with banks and safeguard your access.

The Big Question: Accessing Your Retirement Funds

For many expats, this is the moment you’ve been waiting for. Once you’ve been a South African tax non-resident for three consecutive years, you become eligible to apply for a full withdrawal of your retirement annuities and preservation funds. This withdrawal is subject to a withdrawal tax, which varies depending on the type of fund, your age, and the total amount withdrawn. Understanding these nuances upfront can save significant costs.

The process requires obtaining tax clearance from SARS, which confirms your non-resident status and ensures that your withdrawal is fully compliant. This isn’t just a formality: any missing documentation, incorrect information, or delays in submitting your tax clearance can result in extended processing times or unexpected tax liabilities.

Planning is critical. Timing your withdrawal strategically can influence how much tax you pay, and coordinating with your fund administrators ensures that all letters, forms, and valuations are correctly completed. For expats, additional considerations like currency transfers, foreign exchange rates, and repatriation rules also come into play, particularly if you plan to move the funds overseas.

Estate Planning and Inheritance for Expats

Becoming a non-resident doesn’t remove your South African assets from the reach of local tax law. Property, investments, and business interests in South Africa remain subject to Estate Duty. In other words, when these assets are passed on, they could incur inheritance tax if not properly structured.

For expats, this introduces layers of complexity. Cross-border estate issues can be costly and time-consuming if your affairs aren’t organised. A standard will drafted overseas may not comply with South African law, potentially leading to delays, disputes, or unintended tax consequences.

The most effective strategy is to maintain a dedicated South African will for your SA assets. This ensures that:

• Your wishes are executed precisely as intended.
  
  
• Beneficiaries are clear, reducing the risk of legal disputes.
  
  
• Estate Duty and other obligations are properly calculated and managed.
  
  
• Administration is streamlined, avoiding unnecessary cross-border complications.
  
  

Nolands: Your Lifelong Financial Partner in South Africa

Our work doesn’t end once your non-residency is confirmed. We continue to provide:

• Annual non-resident tax returns for any SA-sourced income
• Retirement fund withdrawal support, from tax clearance to final transfer
• Estate planning guidance to structure your affairs efficiently for tax and succession purposes
• Ongoing advisory services, acting as your professional presence on the ground in South Africa

With Nolands, you’re not just compliant, you’re empowered. We make sure your SA financial footprint is managed efficiently, giving you freedom and peace of mind wherever you are in the world.

Formalising your tax residency is just the first step. Managing your South African financial future as a non-resident is an ongoing journey - and one you don’t have to take alone.

Whether you’re just starting to consider your tax status or you’re already a non-resident needing help managing your affairs, contact Nolands today to secure your financial peace of mind.