Lifetime Allowance for Foreign Transfer
Fortunately, overseas investment nowadays does not involve long and dangerous journeys at sea. Modern developments in banking and portfolio management have made the process somewhat more convenient.
South African legislation allows authorised dealers (such as the banks) to grant private individuals (natural persons – in other words, not companies) permission to invest up to ZAR4 million abroad per annum. In order to qualify for this permission, the person must be of good standing and must also be over the age of 18 years.
The money may be invested in offshore portfolios, property, or other investments, or simply deposited in a foreign bank account.
Before any such transfer can be made, the person wishing to make the transfer must obtain a tax clearance certificate from the South African Revenue Service (SARS), which must in turn be presented to the authorised dealer concerned.
Money Transfers to and from South Africa - here's how:
- Foreign exchange regulations in South Africa 03-01-2011
- Essential money transfer advice for all transactions 02-01-2011
- Exchange control relaxed in South Africa 28-10-2010