Urgent message for South Africans who want to leave the country in 2026

Experts urged South Africans planning to emigrate in early 2026 to start preparing now, as SARS and banks slow down over the festive season, and delays can seriously hinder the tax-residency cessation process.

As the year draws to a close, many South Africans begin preparing for international relocation at the start of the new year.

However, Tax Consulting South Africa’s head of SARB engagement and expatriate compliance, Lovemore Ndlovu, warned that the administrative side of emigration is often more complex than anticipated.

“If you intend to finalise your tax residency cessation early in 2026, the window to prepare is now,” he said.

The South African Revenue Service (SARS) and the major banks typically operate on skeleton staff from around mid-December.

This means South Africans will face delays in processing, slower turnaround times, and applications that may stagnate until late January.

“One of the most important steps is to ensure that your tax compliance position is fully up to date before SARS begins winding down,” Ndlovu said.

Notably, ceasing South African tax residency is a complicated part of the emigration process. “SARS will not consider a tax residency cessation application if your tax affairs are not in perfect order,” Ndlovu warned.

This means that South Africans must ensure all their historic and current tax returns have been filed with the revenue service.

They must also make sure that no penalties, outstanding assessments, or unresolved verifications remain on record, and that any prior-year audits or reviews have been finalised.

“Additionally, your SARS eFiling profile must be accurate: personal details, banking information, addresses, and contact numbers must all be correct,” he said.

“Even small mismatches, such as an outdated address or bank account, frequently trigger non-compliance that can delay the entire process.”

During December, Ndlovu noted that these corrections become more difficult to resolve due to reduced staff capacity, making it essential to address them now to ensure your application moves quickly and efficiently once submitted.

Tax implications for emigrants

According to Ndlovu, the cessation of tax residency is a highly evidence-driven process that requires extensive supporting documentation to prove that one no longer meets the South African residency tests.

“This can include foreign employment contracts, visa or residency permits, international lease agreements, updated statements of assets and liabilities, and bank or investment statements,” he said.

“Given that many financial institutions, administrators, and even overseas authorities slow down or close during December, obtaining these documents at year-end can become exceptionally time-consuming.”

According to Ndlovu, it is easier for prospective emigrants to gather everything they need before the festive season begins.

“Travel records or physical presence calculations, which are sometimes required to substantiate your residency position, also take time to compile,” he said.

“Ensuring you have all documentation ahead of time not only speeds up the SARS submission to cease tax residency but also prevents the application from being delayed due to missing or outdated information.”

Ndlovu added that a key component of ceasing tax residency is dealing with the deemed capital gains tax, commonly referred to as the “exit tax”.

“When you cease residency, SARS treats certain qualifying capital worldwide assets – excluding South African immovable property – as if you sold them the day before you exit,” he explained.

This price determination requires accurate market valuations, historical cost data, and detailed tax computations.

“Many taxpayers underestimate how long it takes to obtain valuations for global assets, particularly when financial markets, valuation analysts, and administrative teams operate with limited capacity in December,” he said.

“Preparing these valuations early helps your advisor calculate your Exit Tax accurately and prevents SARS from issuing queries or requests for additional information.”

Ndlovu warned that the exit tax is often the most complex and time-consuming component of the cessation process, making early preparation critical.

Avoid festive season delays

South Africans transferring more than R1 million single discretionary allowance offshore must obtain an Approval International Transfer (AIT) TCS PIN from SARS, Ndlovu explained.

This requires prospective emigrants to be fully tax-compliant and provide supporting documents to verify the source of funds.

However, Ndlovu cautioned that SARS and bank compliance teams often experience significant slowdowns in December. This can cause lengthy delays in approvals, foreign exchange reviews, and cross-border payments.

“This can impact urgent transfers such as relocation costs, accommodation deposits, school fees, or investment proceeds,” he said.

“Securing your TCS PIN and planning transfers before mid-December helps avoid missed cut-off dates and ensures funds move offshore without unnecessary delays.”

According to Ndlovu, the intersection of SARS regulations, bank compliance requirements, exchange control rules, and the technical tax components of ceasing residency is complex even under normal circumstances.

“When combined with the December business slowdown, the risk of delays, errors, or incomplete submissions increases considerably,” he said.

“Working with a specialist ensures that all documentation is correctly prepared, valuations are properly compiled, SARS requirements are fully met, and all applications are aligned with exchange control rules.”

This reduces the risk of your cessation application being rejected or delayed and improves the chances of a seamless transition into non-resident status at the start of the new year, Ndlovu explained.

“Whether driven by career opportunities, global mobility, family commitments, or lifestyle preferences, emigrating is a major milestone, requiring careful planning, particularly when dealing with SARS during the festive season,” he said.

With administrative capacity decreasing from mid-December, Ndlovu said starting tax residency cessation preparations early is the best way to avoid delays and ensure a smooth relocation process.

“Acting now allows you to enter the new year with clarity, compliance, and peace of mind, ready to begin the next chapter of your life abroad,” he said.