Allowances increased for Expats to move Rands abroad.

Allowances increased for Expats to move Rands abroad.

As of the 1st April 2015, the South African Reserve Bank announced that it was increasing the annual foreign investment allowance from R4 M up to R10 Million per individual per year. So what does this mean and how can you take advantage of this.

With the personal allowance set to increase from R4 Million to R10 Million per individual, this means that you will now be able to send up to R11 Million abroad to any account you like taking into account the R1 Million discretionary allowance. This doubles if you are married as it's a per person allowance.

Until recently, the SARB's stranglehold on money movement out of South Africa made it difficult to invest large amounts of money abroad. Previously, the per-person allowance amount was increased to R4 Million per year, allowing a transfer of up to R8 Million if your spouse was also a registered taxpayer and South African citizen (R10 Million if you take both parties' R1 Million discretionary allowances into account).

The steady fall of the Rand along with the rising costs of property and other investments abroad has meant that moving your Rands abroad for investment bought you less and less. This latest move by the SARB to increase the annual allowance has created a golden opportunity for individual foreign investment. With a R1 Million discretionary allowance that has no restrictions and a R10 Million investment allowance, a single person can quite comfortably make a large investment abroad now.

Despite SARB relaxing and raising the allowances restrictions, it has increase the bureaucratic paperwork process to move these funds abroad in an attempt to counter money laundering etc. This frustrating process makes the exercise long-winded and fraught with pitfalls.

Rand Rescue can assist you with this process and we aim to make the process simpler and easier to navigate and move your funds fast and securely to your overseas bank accounts within the confines of the new allowances.

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