Transferring your hard-earned money out of SA can be scary and daunting, and it should not be. Depending on who you are dealing with, the process should be straightforward and pain-free. If you need assistance and advice on the requirements and best options available to you, please get in touch to discuss a safe and secure bank-to-bank money transfer solution. Here is some further information regarding the current allowances available for South Africans as of 1 January 2020
Every person that has lived and worked in SA should be able to do so using any of the following allowances as enabled by the SA Reserve Bank:
- Up to R1 million annual allowance each year
- Travel Allowance (covered under the annual allowance)
- Gift Allowance(covered under the annual allowance)
- R10 million Foreign Investment Allowance
R 1 MILLION Annual Single Discretionary Allowance
You can, as an individual, transfer up to a R1million per year using your discretionary allowance without having to get a SARS Tax Clearance. This R1m includes travel, gifts, and maintenance allowance.
As a resident, you may transfer a total of R1,000,000 from South Africa every calendar year. Please note that all card transactions, travel allowance, and gifting while abroad are included under this allowance.
R 10 MILLION Foreign Investment Allowance
South Africans can transfer R10 million per annum outside of South Africa or R20 million per family. These funds can be invested into offshore investment portfolios or bank accounts abroad or be used for any legal reason, like Property purchases, etc. A Tax Clearance from SARS is required (we will assist you with obtaining a SARS tax clearance).
You may also transfer funds abroad more than these allowances allow. Please contact us for more information.
The minimum requirement for transferring funds is to have a green bar-coded ID document or the latest ID card and have a SA tax number.
Travel Allowance
Private individuals are allowed to utilise their annual travel allowance per calendar year. Please note that the travel allowance forms part of your R1m annual Single Discretionary Allowance and is not a separate allowance to it.
- R1,000,000 per adult (same as the discretionary allowance)
- R200,000 per child (under the age of 18)
Funds are to be transferred into an overseas bank account in the traveler’s name.
Gift Allowance
The gift allowance can be utilised to transfer amounts up to R1,000,000 overseas as a gift. Any amounts over R100,000 are taxable at 20%
All amounts under R100,000 will have no tax implications for the person gifting the money. Gifts can only be paid from a South African resident to a third party currently living overseas (who can either be a non-resident or a South African resident temporarily abroad). Please note that the gifting allowance forms part of your R1m annual Single Discretionary Allowance and is not a separate allowance to it.
The Process
The transfer process usually takes between 1-2 business days, and we will assist with the process and guide you through every step of the way and transfer to any bank account you nominate globally. We give you the security of a bank-to-bank transfer but at highly negotiable exchange rates. The process is totally transparent, and there are no hidden costs.