Understanding South African Exchange Controls

Most South African residents are aware of Exchange Controls but don’t always understand the full the rules and regulations. The general perception among South Africans is that exchange controls are restrictive as they govern how much an individual or business can transfer out of South Africa at any time. They also define the circumstances in which money can be transferred in or out of the country. While this can be frustrating for South African residents and business owners, it doesn’t mean you can’t transfer money overseas.   

If you follow the correct procedures and can demonstrate source of funds and provide certification that you are tax compliant – there really isn’t a limit to how much you can move.   

We’re the fastest growing payment provider because we’ve made it possible for customers to move money faster, cheaper & easier than ever before. 

How much money can you take out of South Africa?

When transferring money out of South Africa, it’s important to understand the exchange control limits and how these regulations apply to you. As a South African resident, you can transfer a total of R11 million out of South Africa per year using your allowances.

It’s important to note that exchange control regulations do change and there are a number of changes coming into affect in March 2021.

As it currently stands, taxpayers over the age of 18 who are South African residents are eligible for the following allowances:

R 1 Million

  • R1 million Single Discretionary Allowance. Your single discretionary allowance can be used for any legal purpose abroad (including travel, emigration, and investment). It is referred to as a discretionary allowance as you can transfer money out of South Africa without a tax clearance certificate or any supporting documentation.

No tax clearance required from SARS

R 10 Million

  • R10 million Foreign Investment Allowance. This allowance can be used for offshore investment, property investment or emigration. You will require a tax clearance certificate from SARS for anything over R 1M. If you need to transfer larger amounts, we can guide you through the process and help you obtain a tax clearance certificates.

Tax clearance is required from SARS