Most people in South Africa will be aware of exchange control regulations, although many are not always sure exactly what impact these have on them or what their options are in terms of dealing with them.
Most people new to South Africa will have heard rumours that it is hard to move money in and out of South Africa, and will definitely have heard horror stories of how once you have brought money into South Africa it is virtually impossible to get it out again and therefore most are too frightened to bring any money into the country in the first place.
Exchange control is an important topic for people coming to, returning to or leaving South Africa.
- Exchange control regulations restrict the in- and outflow of capital in 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. Agents, also known as authorised dealers, are situated in every South African Bank.
- Every time money gets transferred from overseas into South Africa or from South Africa into another country, those funds have to be declared with the Reserve Bank.
- Under exchange control regulations there are no limitations as to how much money can be brought into South Africa, but there are limitations on the amount of money that can be transferred out of South Africa.
- South Africans are currently, for example, able to transfer up to R 4 million out of the country and invest it overseas. This is their lifetime allowance; additional allowances are available for travelling and other defined activities.
- For all non-South Africans, their exchange control status is vital in deciding if there will be limitations on transfering money out of South Africa that was introduced previously.
Please note that your exchange control status is independent of your tax status in South Africa. Different definitions apply.
You should make sure that you know your status for exchange control purposes and the legal implications of this status. It can have significant implications in terms of what you may or may not be allowed to do, and should be carefully managed at the outset so you don´t encounter unnecessary problems down the line.
Contact us for more information about Exchange Control South Africa.
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“We look forward to being of assistance to you with more information about Exchange Control South Africa.”