Inheritance and trust incomeou are the beneficiary of inheritance or trust distribution from a South African source you must comply with exchange control regulations to transfer the funds overseas.
How to transfer South African inheritance and trust income
If you are the beneficiary of inheritance or trust distribution from a South African source you must comply with exchange control regulations to transfer the funds overseas. Non-compliance could be deemed a criminal offence and may result in financial penalties.
Typically you’ll find yourself in one of three situations, and for each we have the solution:
1. You’re a South African resident temporarily abroad, i.e. you live overseas but have not completed the financial emigration process in South Africa:
Use your annual exchange control allowances to transfer up to R11m abroad in any given calendar year. You must hold a South African barcoded ID required and will require a tax clearance certificate for amounts in excess of R1m.
Follow the financial emigration route; this process changes your exchange control and tax status to financial non-resident, where after you’re free to transfer funds abroad.
2. You’re financial non-resident of South Africa, i.e. you live overseas and have completed the financial emigration process in South Africa:
Upon verification of your “emigrant” status you are free to transfer funds offshore via a “blocked account” with the bank that facilitated your emigration process. In the case of inheritance transfer your emigration must pre-date the testator’s’ death.
3. You have never been a South African resident:
Funds can be transferred offshore via an authorised dealer once you satisfy the South African authorities of your non-resident status.
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