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Finances

We are not financial advisors and therefore cannot give financial advice. The information here should not be seen as financial advice in any way.
Always make informed decisions and speak to a professional when you are unsure.

What is exchange control?

Foreign exchange controls are various forms of controls imposed by a government on the purchase/sale of foreign currencies by residents or on the purchase/sale of local currency by nonresidents.

The South African Reserve Bank (SARB) uses the Currency and Exchanges Act No. 9 of 1933 and its Regulations to control Foreign exchange.
Authorised dealers ensure that their customers comply with the various regulations that control the sending and receiving of funds across South African borders.

ZAR to EUR

When you want to exchange South African Rand for Euros, you should keep the following in mind:

  • Your residence status
  • The amount of money you want to exchange. Some institutions have a limit on the amount, and some offer better rates for higher amounts
  • The purpose of the exchange
  • Requirements and regulations from SARS
  • Requirements and regulations in Germany
  • Tax implications
  • The exchange rate. There is a selling and buying rate, and it is not the same as the rate you hear on the news.  See for example FNB
  • The fees that are payable for the transaction. Some charge a percentage and others a flat rate per transaction.
  • The institution you want to use. Make sure it is an authorised dealer. You can find a list of Authorised dealers in South Africa in this document from the South African Reserve Bank.
  • Possible hidden fees

Tourism

Please refer to the Travel Allowance section of the following document from the Reserve Bank. Additional Information can be found on the SARS website –  Departure from SA page
As a tourist, you can get foreign exchange from authorised dealers in South Africa. The current (2021) limit per year is R200 000, but this can change so please refer to the abovementioned documentation.
You are also limited to R25 000 in Rand notes per person.
You can use a South African credit card outside of South Africa if your bank allows it and if you keep to the above limits.
You will need supporting documentation for example a flight ticket.
For more info – see this page from Travelstart

Residence in Germany

Please refer to the “Residents temporarily abroad” section of the following document for the allowance limits.
Additional Information can be found on the SARS website –  Departure from SA page
You are not allowed to use your South African Credit card in your new country of residence.

Emigrating from SA to Germany

Please refer to the “Private individuals who cease to be residents for tax purposes in South Africa” section of the following document. 
Additional Information can be found on the SARS website –  Departure from SA page

German Regulations

According to the German Foreign Trade and Payments Regulation (Außenwirtschaftsverordnung, AWV), incoming or outgoing payments from abroad must be reported to the Deutsche Bundesbank.
“Pursuant to section 11 of the Foreign Trade and Payments Act (Außenwirtschaftsgesetz, AWG) read in conjunction with section 67 et seq of the Foreign Trade and Payments Regulation (Außenwirtschaftsverordnung, AWV), all residents in Germany (natural and legal persons whose place of residence is in the Federal Republic of Germany) have to report payments of more than €12,500 or the equivalent in another currency which they receive from non-residents (natural and legal persons whose place of residence is outside of the Federal Republic of Germany) or from residents for the account of non-residents (incoming payments) or make to non-residents or to residents for the account of non-residents (outgoing payments).”
Find more information here

Comparison website

  • Monito can be used to compare fees and rates, please be careful of hidden fees!!!

Some options to consider

These institutions are not endorsed by us, they are just a list of regular suggestions on our FB page

  • South African Bank to German Bank
  • Transferwise
  • WorldRemit
  • Paypal
  • Western Union
  • Currency Partners

Terminology

TermDescription
SWITFTSociety for Worldwide Interbank Financial telecommunication.
SWIFT codeEvery Bank has a SWIFT code. Also referred to as the SWIFT code
BICBank Identifier code. The SWIFT Address is assigned to a bank in order to send automated payments quickly and accurately to the banks concerned. It uniquely identifies the name and country, (and sometimes the branch) of the bank involved. BICs are often called SWIFT Codes and can be either 8 or 11 characters long
IBANInternational Bank Account Number. An international bank account identifier used to uniquely identify the account of a customer at a financial institution
BoP CodesAll cross-border transactions must be reported to the South African Reserve Bank in accordance with SARB Regulations. Balance of Payments Reporting (BoP Reporting for short) is an electronic message system used by Authorised Dealers (i.e. Banks) to report cross-border transactions to the South African Reserve Bank (SARB). When completing an application for a cross-border transaction, clients are required to provide the reason/s for the transaction. Use the lists provided to select the correct Inwards or Outward BoP Code/s for your transaction. Please note that a transaction may involve more than one reason

Businesses listed on our website

The following businesses can assist with Forex and International Money transfers.

Currency Assist

Assisting clients with International Money Transfers to or from South Africa At Currency Assist, we come to work every day striving to find a solution

Related content

Foreign Exchange- EUR to ZAR

We are not financial advisors and therefore cannot give financial advice. The information here should not be seen as financial advice in any way.Always make informed decisions and speak to a professional when you are unsure. What is exchange control? Foreign exchange controls are various forms of controls imposed by a government on the purchase/sale of foreign currencies by residents or on the purchase/sale of local currency by nonresidents. The South African Reserve Bank (SARB)

Financial Emigration

Financial emigration is the process used by many South Africans abroad to formalise their non-resident status for both tax and exchange control purposes. The detail within this post and on this page is not legal or financial advice and should not be construed as such. Please consult a professional advisor to consider the specifics of your personal situation. We accept no liability or responsibility for the correctness of the details within this post. E&OE.” The topic

Income Tax / Lohnsteuer

We receive a lot of questions about income tax declarations and where to get help, especially getting help in English.First I have to state that we are not tax consultants and by German law are not allowed to give any tax advice. You can read more about it here, the article is German but can be easily translated.Basically your immediate family can assist you with your taxes, see the article, but if there is no

Financial emigration is the process used by many South Africans abroad to formalise their non-resident status for both tax and exchange control purposes.

The detail within this post and on this page is not legal or financial advice and should not be construed as such. Please consult a professional advisor to consider the specifics of your personal situation. We accept no liability or responsibility for the correctness of the details within this post. E&OE.”

The topic of Financial Emigration is often discussed on this page and thus it is appropriate to update some information for all.
The Financial Surveillance Department of the South African Reserve bank as of the 1st March 2021 amended the Currency and Exchanges Manual for Authorised Dealers.
In a nutshell, the concept of Financial Emigration has been phased out!
The new terminology is a non-tax resident. It is important to state that this amendment only affects South African residents and South African emigrants living abroad who have not formally emigrated prior to 1st March 2021.

We explain the changes below as simply as possible.
Section B.2(J): Private individuals ceasing to be South African tax residents.
The previous process of formerly emigrating involved two scenarios’:

  • An individual went through a formal emigration process whereby they applied to SARB to emigrate through their bank by completing an MP336(b) form.
    The emigration process would then involve tidying up their tax affairs with SARS. Once in order, SARS would provide a tax directive to the individual.
    The final step would be SARB approving the emigration and placing it on record that the individual is a non-resident of SA.
  • If a South African resident has been out of the country for more than 5 years, is a resident of another country, with no assets left in SA, they could complete a MP336(b) form, and a bank could log this with SARB to declare that person a non-resident of SA.
    This process of emigration has been phased out. An individual wanting to “emigrate” will only deal with SARS.
    They will apply to SARS for a Tax Clearance Certificate to remit money offshore from the sale of their assets, and then apply to become n0n-resident for tax purposes. This does not however make them a non-resident of SA.
    If that individual decides to travel back to SA and spends extended periods in SA, then the SARS physical presence test will apply, and they could then qualify to be taxed in SA again in the future.

The new section now states:

A South African living in SA and a South African living abroad who has packed up and left the country are now viewed as one and the same.
Therefore, the R 1million SDA and the R 10 million FIA applies to both.

The implications of this change:

The change in regulation does not necessarily affect SA residents wanting to “emigrate”, it may make the process easier and cheaper as it cuts out involving the commercial banks as well as SARB in the process who charge for the emigration.
Individuals are not declared non-residents any longer and residency as well as tax obligations may kick in again based on their movements in a period of time and business dealings within SA.
In respect of the withdrawal of retirement funds, payment of lump sum benefits to individuals may only occur once the individual has remained a non-tax resident for at least 3 consecutive years.

The issue regarding the change arises primarily for those who left South Africa and:

  1. Did not formally emigrate before 1st March 2021, and
  2. Have misplaced their SA Green Barcoded ID Book, or
  3. Do not have their SARS income tax number

[wpfa5s icon=”fa-arrow-right”]If you do not have your ID book, you will not be able to remit any funds out of SA.

[wpfa5s icon=”fa-arrow-right”]If you have your ID book you will be permitted to remit up to R 1 million out SA in respect of your SDA allowance.
Those with an ID book, who also have a SARS tax number may then apply to SARS to remit more than R 1 million out of SA.
South Africans living abroad will thus find it increasingly more difficult to remit funds out of SA, especially proceeds from inheritance and trusts.

Solutions to SA residents abroad:

As it stands currently:
Unfortunately, those who have not formally emigrated and have misplaced their Green Barcoded ID Books, will need to apply for a new ID book if they are to receive inheritance or other flows of funds from SA.

If you have an ID book but cannot remember your SARS tax number, or if dormant as you have been out of SA for that long, you will need to reactivate your SARS tax number via e-filing or a tax practitioner to remit more than R 1 million.

SARS have offered a remedy that SA residents abroad will need to go through the TCR01 process with SARS to confirm that they are non-resident for tax purposes.
This has not been tested yet and we cannot clarify how this will affect those with no ID Books or SARS tax numbers yet.

Info on the web

  • SARS – Cease to be a resident

News articles worth reading

  • Businesstech – here are the new rules
  • Moneyweb – Financial emigration: What is it and when is it appropriate

Related Content

Financial Emigration

Financial emigration is the process used by many South Africans abroad to formalise their non-resident status for both tax and exchange control purposes. The detail

Income Tax / Lohnsteuer

We receive a lot of questions about income tax declarations and where to get help, especially getting help in English.First I have to state that

The following Social Insurances are payable in Germany when you are a full-time employee or trainee:

  • Krankenvesicherung / Medical Insurance
  • Plegeversicherung / Long Term care insurance. Nursing or home care
  • Rentenversicherung / Pension insurance
  • Unfallversicherung / Accident insurance – Should you become ill due to your profession you will be supported by the statutory accident insurance scheme. This will, for example, continue to pay your wages.
    It also assumes the cost for a further training course (retraining) should you no longer be able to work in your original profession.
    And it also pays pensions to widows and orphans.
    The contributions to this insurance will be paid by the company for which you work.
  • Arbeitslosenversicherung / Unemployment insurance – If you have a position with a company that is subject to social insurance contributions you are automatically insured against unemployment. Should you become unemployed you will receive support from your employment agencies and job centres. The Arbeitsagentur will help you look for work. They also offer you financial support to cover your living costs should you fulfil the conditions for this.
    You can find more information concerning Unemployment Benefit and Supplementary Unemployment Benefit II (Arbeitslosengeld und Arbeitslosengeld II here – available only in German).

You can download a very informative e-book from the Deutsche Rentenvesicherung. This is available in German only.

Additional Information

  • You should receive a Sozialversicherungsausweis / Social Security card.   – Your social security number will be on this card. – As an employee, you need a social security card. With this, you can prove to your employer, among other things, that you are a member of the statutory social security system. You receive your number the first time you start employment and register for social insurance.
    Karrierebibel explains, “If the employer knows that the new employee is taking on a job for the first time, they register them with the health insurance company or the mini job centre. You will then apply for your social security card from the German Pension Insurance. The Deutsche Rentenversicherung will send you the ID.”
    You can also read more from the AOK
  • You will get a yearly Meldebescheinigung zur Sozialversicherung / Social Security certificate from your employer. This certificate contains your gross salary for the previous year that is subject to contributions. The information is relevant for calculating your pension, and you should keep your copies until at least your retirement date.

How to apply for your Social Security number

Your Social Security number is used as identification for health insurance (public), pension, long-term care, and unemployment insurance. 
You can get this number in different ways, depending on your situation.

  • Public Health Insurance – You receive your number automatically when you first sign-up for public health insurance in Germany. If you are on private health insurance, you need to request it manually at your local Rentenversicherung office.
  • Employer – your employer might offer to apply for a social security number for you through their payroll system
  • The German Pension Office – You can personally contact the Deutsche Rentenversicherung, either online or by visiting their offices 
  • Your Insurance Broker – As your broker for assistance

You need to supply your employer with this number. 
Your social security card (Sozialversicherungsausweis) is a very important document which you must keep safe. You will also need it when applying for social benefits e.g unemployment benefits

Format

Your Sozialversicherungsnummer has the following format: 12 123456 A 123.

  • The first 2 digits are the area number of the office that registered you
  • The next 6 numbers are your birthdate
  • The Letter is the first letter of your surname
  • The last 3 numbers are used to differentiate you from people with the same name and birthdate
Detailed information on the GRV Website(in German)

References and info on the web

Related content

Income Tax / Lohnsteuer

We receive a lot of questions about income tax declarations and where to get help, especially getting help in English.First I have to state that

Pension

Homepage of the Deutsche Rentenversicherung Information about the German state pension scheme can be found on their homepage for foreign languages. The German site has a lot more information.

Medical

Health insurance is mandatory for everyone visiting or living in Germany.When living in Germany you can either take our private (privaten Kran­ken­ver­si­che­rung – PKV) or

We receive a lot of questions about income tax declarations and where to get help, especially getting help in English.
First I have to state that we are not tax consultants and by German law are not allowed to give any tax advice. You can read more about it here, the article is German but can be easily translated.
Basically your immediate family can assist you with your taxes, see the article, but if there is no family relationship you are not allowed to assist someone. You are not allowed to help with your friend’s tax return. This also includes a partner if you are not engaged or married.
See more from Steuertipps,

Some of the options available to you are:

  • Get a Tax advisor. In Germany they are called der Steuerberater
  • Get help from a Lohnsteuerhilfeverein (  A wage tax aid association is a self-help institution run by employees for employees to provide assistance in wage tax matters and in special income tax assessment cases (Section 13 StBerG). They were created in 1964 at the instigation of the trade unions. The aim of the legislature is to ensure that employees can receive tax advice at reasonable costs regardless of their income.) To find one in your area you can search online or on this website. You can specify your language as well e.g Englisch or English
  • Do it yourself. You might want to consider using software or apps. The tax rules in Germany are extremely complicated especially when both partners are working and you have kids.
    These rules also changes yearly so make sure that if you use software, it is up to date

Where to get more information:

Some basic information

The German Tax year runs from January to December and you can submit your tax return between 1 January and 31 July the following year.
Lohnsteuer and Einkommensteuer – They differ by the method of collection. Lohnsteuer is collected at source and paid directly to the Finanzamt (tax office) by the employer while the individual must pay Einkommensteuer himself.
There are 6 German Income Tax Classes “Lohnsteuerklasse”. You can find the list here.
South Africa uses a Residence base tax system and Germany a Source base system.
To get a basic idea of your taxes you can use a Wage tax calculator from SteuerGo
ELSTER (Elektronische Steuererklärung) – For online tax submissions. You need to register for a free account. The application is currently only in German

How and where do I register for Tax

As an employee, you will receive your tax ID (Steueridentifikationsnummer), Format: 12 345 678 901, when you register at the Bürgerampt and Auländerbehorde.  This is like an Identity number and you will keep it for life. Children born in Germany receive their tax ID at birth.

As a freelancer or company, you must register for a tax number (Steuernummer), Format: 12/345/67890 or 3012034567890, that you use on your Invoices.
This number is related to your place of residence and if you move to a new town you will need to apply for a new number. Application is done at the Finanzamt.

You also apply for a VAT number (Umsatzsteuer-Id), Format: DE123456789,  at the Finanzamt.

How to Berlin has an excellent article about registering for tax

Double Taxation Treaty between South Africa and Germany

Double Taxation Treaty between South Africa and Germany

Resources on the web

Finding a tax advisor

The following organisations were suggested by members of our FB group, we are not affiliated with any of these organisations.

Bayern

  • Lohi Lohnsteuerhilfe Bayern e.V.
  • ISAR E.V. Lohnsteuerhilfeverein
  • KSW Legal

English speaking tax advisors

Apps and software

 

Pension funds

Medical Aid