Even though this may sound daunting it is quite simply one of those things you will need help with. Once you have declared all your taxes on the other side, you can freely transfer your money over to South Africa, without any additional taxes waiting
for you. So thank you to our associates in SA for this wonderful advice and information.
So when transferring money to South Africa, there are a few exchange control regulations in South Africa.
Exchange Control regulates the flow of capital in and out of South Africa.
All foreign exchange transactions are subject to comply with the Exchange Control Regulations. The controls are administered by the South African Reserve Bank through its agents, i.e. authorised dealers in foreign exchange (with a foreign exchange license)
If you are a South African citizen, remember – exchange control regulations are strict!
Whichever rules and regulations influence you personally depends on your status upon arrival in South Africa. You will most probably be regarded as an immigrant.
An immigrant is a national of another country who comes to South Africa with the intention of residing here permanently, i.e. he or she formally immigrates and takes up permanent residence.
South African citizens who are over the age of 18 and who have obtained a tax clearance from SARS (South African Revenue Service) are allowed to invest up to R 5 million outside South Africa per anum. This investment may be in any form and could include holding cash in a foreign currency account with a local bank.
South Africans may invest in inward listed instruments on the JSE, the Johannesburg stock exchange, without restriction.
General requirement on entering South Africa
Immigrants are required to declare to an authorised dealer (to their bank here in SA) whether they are in possession of foreign assets and, if so, give a written statement that they will not place such assets at the disposal of any third party who is a resident in South Africa.
Assurance is given that (prospective) immigrants who decide to relinquish South African residence within five years of arrival may retransfer freely all funds introduced to South Africa, plus the profit they made, provided the transfer is not funded by local borrowing facilities.
After the five years of residence in South Africa, your status for exchange control purposes changes. The most important change is the following:
If you decide to leave South Africa more than 5 years after your arrival, you are still allowed to retransfer/ re- export all your own assets that you previously introduced, in case you immigrated on or after 13.03.1995.
However, the profit you made with your SA assets can only be transferred out of SA up to a sum of R 2 million per Person.
Contact us if you would like to learn more about Funds Transfer into South Africa.
At Globalfundi and Incompass Financial Services we believe in service!!!!!
