When it comes to financial emigration, which destinations are the most popular with South Africans?

Many of these locations are already well known and their ranking in popularity has changed little over the last decade or so. The top contenders for financial emigration remain so because they offer South African expatriates the benefits they seek.

The Big 5 in financial emigration

As at 2020, the top 5 financial emigration destinations for South Africans, according to online consumer and market data platform Statista, were:

* United Kingdom (247,336)

* Australia (199,690)

* United States of America (117,321)

* New Zealand (73,896)

* Canada (48,093)

In 2023, this ranking largely holds true. But what makes these countries the most desired spots for financial emigration? There are many reasons and they are not that surprising.

Better economy

All the top 5 financial emigration destinations promise a better economy, even when they are experiencing lower economic growth. With a long history of strong economic development and higher levels of education, these countries produce leaders who are capable of navigating the modern global economy, even at its most turbulent.

Robust fiscal policy

A strong economic history and good financial leadership means these regions are also able to develop robust fiscal policies that bring relative stability to their markets and ensure balanced international trade deals. This is another reason they are targets for financial emigration.

Stronger financial markets

Many South Africans considering financial emigration will be concerned about preserving their wealth and earnings. These destinations assure better financial services and investment opportunities to both protect and grow one’s wealth.

More job opportunities

Financial emigration may result from receiving an employment offer in a given region. Eventually, expats might want to change jobs and these countries can afford South Africans a plentiful job market and a wider range of career possibilities.

Desirable quality of life

While countries like the UK may have smaller houses than those found in South Africa, what expats really want from financial emigration is an overall improved quality of life. Factors like better education for their children, public transport, health care, crime prevention and social equality are often of greater importance.

Relative security

The safety and security of one’s family is another top consideration that favours these financial emigration destinations. The reliable civil services in these advanced countries promise just that, including policing, fire and emergency medical services. There is usually also a generally higher sense of community and respect for others’ property and well-being.

Political stability

Advanced economies with strong fiscal policy, good growth and a satisfied population normally enjoy political stability, with a lower probability of civil upheaval. In short, they are mostly peaceful societies and this makes them ideal for financial emigration.

Rich and diverse culture

In addition to practical financial emigration considerations, the top 5 countries also have rich histories and most are centres from which modern society developed. They boast deep cultural dimensions in entertainment, art, science and other areas.

Other financial emigration destinations

Of course, not all South Africans are attracted to these popular financial emigration spots. Some opt for countries like Mauritius for its residency-by-investment opportunities and tropical climate.

Others prefer the Crown Dependencies of Guernsey, Jersey and the Isle of Man for their strong but isolated economies and responsive financial services industry, or as springboards to qualify for entry into the UK.

If the top 5 financial emigration destinations don’t fit a South African’s wealth or lifestyle needs, there are many others to choose from.

Whichever one takes their fancy, it is essential that they pursue full financial emigration and formally cease tax residency with SARS to free themselves of their tax obligations to South Africa.

Because of the country’s tax residency system, this does not happen automatically. Even after leaving, registered taxpayers will continue to be taxed on their worldwide income and disposal of their foreign assets.

So, anyone considering financial emigration should ensure ceasing tax residency with SARS is the first item on their exit plan.