If you have ceased South African tax residency, or you live abroad and still own assets here, your existing South African bank account no longer matches your status. The account you need is a non-resident South African bank account. Getting it right from the start saves time later. Your bank checks the account type before processing any offshore transfer.
What is a non-resident bank account in South Africa?
The South African Reserve Bank (SARB) defines a non-resident Rand account as a Rand account held by a non-resident with an authorised dealer. A non-resident is someone whose main home, registration, or domicile is outside South Africa.
Non-resident Rand accounts must be clearly marked and managed as non-resident accounts. Banks must keep these accounts separate, supervised by someone knowledgeable about exchange control. It is a standard Rand transactional account, but it has an exchange control label that regulates incoming and outgoing transactions.
Who needs a non-resident bank account in South Africa?
You are likely to need a non-resident account if you have ceased South African tax residency and still receive South African income. You may also need one if you own property here that earns rent, if you expect to inherit from a South African estate, or if you plan to move South African capital offshore.
Step 1: settle your status with SARS first
The bank needs evidence of your position before it can convert or open the account. If you have ceased tax residency, that means your SARS notice of non-resident tax status. You need to inform your bank that your tax residency status has changed. This helps the bank classify your transactions correctly and report accurately to SARB.
Read more: Opening a Non-Resident Bank Account in South Africa – terms, tips and tools for expat banking
Step 2: notify your bank
Contact your bank’s non-resident or international banking desk. Some banks convert your existing account, others open a new one and close the old one. Where an account does not match a client’s status, a bank can place a spend block on it, which is lifted once the account has been converted.
Step 3: gather the documents
Requirements differ by bank, but the main list stays the same: a certified passport copy, proof of your address abroad, three months of statements from your offshore bank, and proof of income. Some banks may also ask for documents notarised by an embassy or a legal practitioner in your country, with the originals sent to South Africa.
If your funding sources are varied, expect the bank to request more documents. Confirm certification requirements before sending anything.
Step 4: open the account
Most South African banks accept applications from overseas. Identity verification is done by their international banking teams or a correspondent bank. Build in time for compliance screening rather than assuming same-week approval.
Read more: Tax Emigration: A Vital Step for South African Expats
What may be credited to the account
This is where things get a little more complicated. Banks require documentary proof of the source before crediting funds.
Investec’s guidance for non-resident accounts is clear:
- Rental income: A valid lease agreement signed by both parties is needed. A new agreement must be submitted each time the lease ends.
- Salary or services income: Provide a detailed invoice or an employment contract. If there’s no contract, include payslips.
- Property sale: Submit the sale agreement, a fair value certificate from an estate agent, the final statement from the transferring attorneys, and proof of the original money used to buy the property.
- Inheritance: Include the death certificate, will, letter of executorship, and the liquidation and distribution account with the Master of the High Court reference.
Non-resident accounts are generally not funded from resident sources such as local gifts, cash Rand deposits or local EFTs. They are funded from funds introduced from abroad and from declared South African capital assets, and every credit is subject to proof of source.
Moving money offshore from South Africa
SARS manages offshore transfer approvals via the Approval International Transfer (AIT) option in its Tax Compliance Status system. This applies to South African residents sending money abroad and to taxpayers who no longer have tax residency.
Two key points to consider:
- Individuals who stop being tax residents cannot use the single discretionary allowance available to residents.
- Once, cash balances up to R100 000 can be sent abroad without notifying SARS.
Read more: AIT: the ultimate guide to the new SARS Tax Compliance Status for South African expats
Maintaining the account
- Keep these three habits to make things easier for yourself.
- Keep your compliance documents current. Lease agreements, employment contracts and proof of address expire, and a lapsed document stalls a credit into your account.
- Keep your tax compliance current. For income transfers such as rentals, pensions, annuities and dividends, authorised dealers must verify a tax compliance status of good standing at least once a year.
- Keep your contact details current. Banks send one-time PINs to registered numbers, and access problems are among the most common practical frustrations for accountholders living abroad.
A non-resident account is straightforward to run once it is correctly designated and your documents are in order.
FinGlobal: helping you open a bank account in South Africa from overseas
If you need help with ceasing your tax residency, your SARS tax compliance status, or transferring funds abroad, FinGlobal can manage the process for you and work alongside your bank. Leave your details here and we will be in touch.