Receiving an inheritance from South Africa can be bittersweet, especially for those living abroad. While the financial boost is welcome, the circumstances could be better, and working out the steps involved in transferring those funds from South Africa can feel daunting. To help you, we’ve put together this straightforward guide that breaks down the process for different scenarios, ensuring you understand how to access your South African inheritance efficiently from overseas.
Cross-border inheritance claims – Exchange Control Regulations
South Africa’s Exchange Control Regulations govern the movement of funds in and out of the country. Understanding how these rules apply to you, depending on your circumstances, is key to ensuring the smooth transfer of your South African inheritance funds overseas. The South African Reserve Bank (SARB) oversees these regulations, and compliance is essential to avoid delays or penalties.
1. Transferring funds from SA if you have completed tax emigration
If you’ve already completed tax emigration and successfully ceased your tax residency with South Africa, accessing your inheritance and transferring funds offshore is generally more streamlined. Here’s what you need to know about the process as a non-tax resident of South Africa.
- Financial emigration is not the same as tax emigration: It’s essential to understand that “financial emigration” has been replaced by “cessation of tax residency.” Where financial emigration made an individual a non-resident for exchange control purposes, tax emigration now means becoming a non-resident for tax purposes.
- Proof of cessation: You’ll need to provide the relevant authorities with proof of your tax non-residency status, which is now in the form of the SARS Non-Resident Confirmation Letter.
Read more: How and why to obtain a SARS Non-Resident Tax Status Confirmation Letter.
Making the inheritance transfer, moving funds out of South Africa:
Once your tax non-residency has been confirmed, you will generally be able to transfer your inheritance funds abroad without major setbacks, as long as you provide the necessary documentation.
- A certified copy of the death certificate
- A certified copy of the will
- Liquidation and distribution account (if total estate assets exceed R250,000)
- Letter of executorship
- A letter from the executor of the estate confirming your inheritance.
- Proof of your tax non-residency status (SARS Non-Resident Confirmation Letter).
- Your non-resident bank account details.
- Approval for International Transfer TCS PIN from SARS.
Read more: Document checklist for transferring an inheritance from South Africa.
2. Transferring funds from SA if you have not completed tax emigration
The process is slightly more complex if you haven’t yet exited the South African tax system. You’ll still be considered a South African resident for tax purposes, which impacts how you can transfer funds.
As a tax resident with a green barcoded ID book or Smart ID card, you can utilise your annual discretionary allowance to transfer your inheritance overseas if it is less than R1 million. Where the amount exceeds that, you must use the SARS Approved International Transfer process to utilise your foreign capital allowance.
The importance of tax compliance in transferring your inheritance money out of South Africa
Ensuring your tax affairs are in order is essential. Any outstanding tax obligations can delay or prevent the transfer of your inheritance.
Read more: Your SARS Tax Compliance Status – what expats need to know.
3. Transferring funds from SA if you do not have a barcoded ID book/card
Many South Africans living abroad may no longer possess a valid barcoded ID book, which can make mountains out of molehills when dealing with South African financial institutions.
As such, if you no longer have a South African ID, you will need to complete the tax emigration process to have your tax residency status confirmed as non-resident before you can transfer money out of South Africa.
- Once you have completed tax emigration, you can confirm your non-resident status. Ensure that you have the SARS Non-Resident Confirmation Letter. This is the foundation for your transfer.
- Gather essential inheritance documents:
Certified copy of the death certificate.
Certified copy of the will.
Certified copy of the letter of executorship or letter of authority.
Liquidation and distribution account (required if the total estate assets exceed R250 000).
Proof of the inheritance source (a letter of inheritance may be requested by the bank).
Proof of tax emigration/cessation of tax residency (SARS Non-Resident Confirmation Letter). - Obtain necessary regulatory approvals: SARS Approval (AIT TCS PIN):
- As a non-resident, you must apply for Approval – International Transfer (AIT) clearance from the South African Revenue Service (SARS). SARB FinSurv Approval:
- For inheritance transfers exceeding R10 million, you’ll need approval from the South African Reserve Bank’s FinSurv department.
4. Use a non-resident bank account: This account will be the designated recipient for your transferred inheritance funds, facilitating subsequent international remittance out of South Africa.
5. Present documentation to an Authorised Dealer: Present all gathered documents to an authorised dealer, such as a local bank or financial services provider. Be prepared to provide additional documentation as requested by the bank to verify the inheritance’s legitimacy.
Important note: Even if the deceased resident’s estate has total assets below R250 000, the transfer might be more straightforward, but the Authorised Dealer will still require the will, letter of executorship/authority, and proof of source documents, such as a Master of the High Court-stamped and signed copy of the final liquidation and distribution account, for reporting purposes.
FinGlobal – cross-border inheritance specialists for South Africans
Transferring your inheritance money out of South Africa can be a complex process, but it can be managed effectively with careful planning and the proper support. Whether you’ve completed tax emigration, are still a tax resident, or can’t find your valid barcoded ID book, understanding the requirements and seeking professional assistance will help you smoothly through the international money transfer process.
FinGlobal is ready to guide you in receiving your inheritance efficiently and compliantly. To learn more about how we can help you access your South African inheritance and transfer the funds overseas, leave your contact details below, and we’ll contact you!
Wow, I genuinely wish I’d found this article a few months earlier. I went through absolute chaos trying to get my late father’s inheritance transferred out of South Africa, and no one seemed to have a clear answer. Every bank, every advisor had a different story, and don’t even get me started on the paperwork! This article breaks it down in such a straightforward way—I finally understand the process better.
The part about the distinction between a South African resident and a non-resident is so important, and something I completely missed at the beginning. I didn’t realize how much that affects the process until I was knee-deep in exchange control regulations and tax clearance certificates.
Honestly, I think a lot of people assume they can just “get the money” and it’ll magically show up in their overseas account. Not true. If anyone else reading this is dealing with inheritance from SA, take my advice: get a reputable forex and financial emigration expert early on—it’ll save you a ton of stress.