private client allowances to move funds out of south africa

Private client allowances to move funds out of South Africa

The South African Reserve Bank (SARB) has made the following allowances available to private individuals in order to be able to move funds out of South Africa:

R4M Foreign Investment Allowance

R 1,000,000 per adult - No SARS Tax Clearance Required (this forms part of the Discretionary Allowance below)
R 4,000,000 per adult - SARS Tax Clearance Required

These allowances are per calendar year.

Clients are also able to make applications to the SARB to be able to move funds in excess of the R4 Million above. Exchange4free are able to process this SARB application on our client's behalf.

R1M Disctretionary Allowance

Private indiviiduals are able to utilise a R 1,000,000 annual Discretionary Allowance that can be used for any of the following purposes:

  • Foreign Investment
  • Travel (Including R 200,000 per child under the age of 18 years old)
  • Study and Tuition Fees
  • Maintenance and Support
  • Gifts

R100,000 Gift Allowance

R 100,000 per adult tax free per annum
Please note that there is a 20% tax payable on gift allowances over R100,000 so you are effectively limited to a maximum 'gift' per calendar year of R100,000.
Formal Emigration Allowance

Private individuals formally emigrating out of South Africa may move the following amounts out of the country under the Emigration Allowance:

  • Unlimited Funds with No Exit Levy

Once you have formally emigrated then your money will be placed into a 'Blocked Funds' account in South Africa.

Any 'Blocked Funds' are now freely remittable out of South Africa with no penalty fees.

Non-Resident Funds brought into South Africa

Money brought into South Africa from overseas by both residents and non-residents are freely remittable back overseas without restriction.

Source of Funds Principle: Clients need to prove that these funds were originally brought in from abroad