The process to send money out of South Africa is more complicated than sending money to other destinations owing to Exchange Control Regulations. The South African Reserve Bank or SARB keeps track of all monetary outflows leaving country by instituting various limits on the amount of money that private individuals can transfer out of the country on an annual basis.
These limits take the form of foreign exchange allowances, which outline the amount of money that each individual can send out of the country per calendar year. The most common foreign exchange allowances are:
R1 000 000 Discretionary
An individual may send funds up to R1 million out of the country for the following reasons: foreign investment, travel, study and tuition, maintenance and support or as a gift. A tax clearance will not not be required to utilize this allowance. It should be noted that gift allowances over R100 000 will incur a tax of 20% on the amount being sent.
R4 000 000 Foreign Investment Allowance
Clients investing money offshore or purchasing property overseas over R1 million can utilize the R4 million foreign investment allowance. In order to send money under this allowance, you will need a tax clearance from the South Africa Revenue Service (SARS). We will assist you with obtaining a SARS tax clearance for FREE within 1-2 days.