As a South African expat living and working abroad or happily living in the Old Transvaal, Western Cape or other beautiful part of the country – you’re entitled to move up to R5 million rand per person, per calendar year to an overseas bank account of your choice
While this may come as a surprise to many it comes with the Taxman’s compliments. In a nutshell all South African taxpayers – 18-years and older – can avail themselves of exchange control allowances of R5 million a year to freely move abroad.
The terms and conditions associated with these allowances and transfers are simple, straightforward and above board.
Your SARS tax record and status must be up to date and you need a green barcoded South African ID. That’s all.
There are two personal allowances you can use to employ to move your money abroad:
- Discretionary Allowance of R1 million, which does not require Exchange Control approval.
- Foreign Investment Allowance of R4 million, which requires a SARS tax clearance certificate.
If you’re an expat living outside the country this is a quick and easy way to move your South African money to your new home country.
Local South African should consider this method as a means to fund offshore payments and investments such as overseas university fees or planning that one-day retirement dream home in Tuscany!
The really good news – when husband and wife combine their personal allowances they may move up to R10 million a year as part of their international retirement planning. Nothing wrong with that!
For a free consultation on how to move your money abroad – simple, safe, secure – let one of our international financial advisors call you.
finglobal.com is an authorised Financial Services Provider regulated by the South African Financial Services Board. FSP # 42872. Internationally Accredited PPS Advisor.