What are the Exchange Control regulations applicable to transfer money out of South Africa?
Please visit our South African website at www.exchange4free.co.za for comprehensive information to transfer money out of South Africa including the South African Reserve Bank Exchange Control Manual.
The South African Reserve Bank (SARB) strictly controls the outflow of funds out of South Africa and has instituted Exchange Control Regulations and limits governing the amount of money that can be transferred out of the country and the purposes therefore.
Any money transferred out of South Africa needs to fall within a specified Exchange Control allowance as per below and any foreign exchange can only be bought or sold through an 'Authorised Dealer Bank' or ADLA, being a licenced Bureau De Change:
- Import or Export: There needs to be a genuine underlying payment commitment which needs to be supported by an invoice before money can be brought into South Africa or sent out of the country
- Discretionary Allowance: Each tax paying private individual is allowed to transfer up to R1 Million out of South Africa per calendar year in respect of Foreign Investment, Travel, Study, Maintenance, Gifts and other related reasons.
- Foreign Investment Allowance: Each tax paying person can move a further R4M per calendar year out of South Africa for foreign investment purposes if supported by a tax clearance from the South African Revenue Services (SARS)
There are other available allowances that are outlined in South African Exchange Control Regulations however the above are the most common allowances used by companies and private individuals to send money out of South Africa.
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