Money
Governing: SA exchange control regime as amended from 1 March 2021; SARS residence rules. Builds on: L5.1.
CAUTION - General information only Exchange control and tax residence are specialist fields. Use this lesson to ask the right questions, not to act alone.
Getting paid
Most yachts pay in euros or US dollars, usually into an account in your name. The practical set-up for most SA crew:
| Account | Purpose |
|---|---|
| Foreign-currency account where you are paid | Receives salary; pays living costs abroad |
| SA rand account | Pays commitments at home: family, car, debit orders |
| Card that works abroad | For daily spending without heavy fees |
Ask each bank for the full cost of receiving and sending international transfers, including the exchange margin. The fee on the statement is often not the whole cost.
The rand
Your salary is fixed in euros or dollars; its rand value is not. Over a few years the rand can move by more than a pay rise. Two consequences:
- Budget for commitments at home in rand, with a margin for a stronger rand.
- Do not time the market with money you need. Move regular amounts, not everything at once.
What happened to financial emigration
Until 2021, South Africans leaving permanently could "financially emigrate" through the Reserve Bank, which changed the exchange-control status of their assets. That process ended on 28 February 2021. From 1 March 2021, the exchange-control system no longer uses the concepts of "emigrant" or "emigration".
What replaced it is a tax question. A person moving abroad now obtains confirmation from SARS that they have ceased to be resident for tax purposes. Residence is decided by the tests in L5.1: ordinary residence first, then physical presence.
WARNING - Leaving is a tax event Ceasing SA residence can have capital gains tax and other consequences. Take advice before you declare it.
Retirement savings
A South African who has ceased to be tax resident can withdraw retirement fund lump sums only after being non-resident for at least three consecutive years. If you are building a long career abroad and thinking about your retirement annuity, this matters.
Should you cease SA residence?
For most crew in their first years, no: they are still ordinarily resident, with a home, family and plans in SA, and the foreign employment income exemption (L5.1) covers much of their pay. Ceasing residence becomes relevant when:
- your life is genuinely centred abroad (partner, property, long-term plans);
- your income is well above the R1.25 million cap;
- you want to move substantial savings or retirement funds.
Each case needs a registered tax practitioner and, for money movement, a bank that handles cross-border transfers regularly.
TIP - Paper trail Keep every contract, payslip, bank statement and a record of travel dates for at least five years. When SARS asks, the crew member with records spends an afternoon; the one without spends months.
Sending money home
Regular transfers to family are routine. Keep the purpose clear on the transfer and keep records in case the bank asks for the source of funds.