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Incompass Financial Solutions
Authorised Financial Service Provider
Graphic Centre, 2nd Floor
199 Loop Street
Cape Town, 8001 - South Africa

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Ph: +27 (0) 21 424 2936
Fax: +27 (0) 86 568 2086

Transfer Money Out Of South Africa

transfer money out of south africaAs South Africa's premier money transfer company, we help thousands of individuals transfer money out of South Africa each year.

Discover four golden rules below that will ensure you benefit from the best possible rates and services when you transfer money out of South Africa.

Learn:

  1. How to comply with exchange control and avoid financial penalties.
  2. The secret to getting the best exchange rate.
  3. Avoiding excessive fees.
  4. Securing excellent service.

1. Complying with exchange control and avoiding financial penalties

To transfer money out of South Africa is more complex than you may think. South Africa is one of less than 25 countries in the world who still have exchange control regulations in place.

Navigating through exchange control regulations can be complex and off-putting. Furthermore a large number of individuals get it wrong, which results in large fines from the South African Reserve Bank.

Therefore, you need to make sure you comply with the exchange control regulations when you transfer money out of South Africa.

Whilst it may seem the allowances are straightforward, it is common for individuals to exceed their R1 million annual discretionary allowance through a lack of knowledge

  • An airplane ticket booked through an offshore airline, think British Airways or Lufthansa, forms part of this R1 million allowance. So do items such as:
    • A booking made on AirBnb offshore.
    • Withdrawals or credit card use whilst abroad.

Excluding these items sees an individual making the mistake of sending the full ZAR1 million offshore without deductions – therefore exceeding the exchange control limits.

The financial penalties for doing so are up to 100% of any amount in excess of the R1 million discretionary allowance. Even one business class plane ticket booked with your SA credit card could result in a fine of R50,000 or R60,000.

Your guide to personal allowances

Allowance Type

Amount

For Whom

Requirements (Must-have Documents)

Single Discretionary Allowance

ZAR1 million

Adults 18 years or older

Bar coded SA ID book. Income tax number. Foreign exchange declaration.

Capital Allowance

ZAR10 million per year

Adults 18 years or older

Bar coded SA ID book. Tax clearance certificate in respect of foreign investment.

ZAR10 million plus

Unlimited

Adults 18 years or older

Special reserve bank clearance. Tax compliance letter.

Travel allowance (For adults, travel allowance is included in their single discretionary allowance as above.)

ZAR200,000

Children under the age of 18

Unabridged birth certificate. Travel ticket. Foreign exchange declaration.

One of the key benefits of using Incompass when you transfer money out of South Africa is that we take care of the formalities around exchange control for you - and we do so at no cost to you.

2. The secret to getting the best exchange rate

Transferring money out of South Africa is no different than buying a new car - you are simply buying another currency with your rand. As with any purchase, you want to make sure you are getting the best possible price.

A great many individuals get it wrong when shopping around for the best rate. They often rely on good old Google. Sadly it’s impossible to get hold of the live rate on the internet as the rates quoted are always delayed.

When shopping around and comparing one company with another, regardless of whether it’s your bank or a currency specialist, it’s important to pinpoint the exchange rate.

  • Many banks claim to be ‘commission free’, then load the exchange rate.
  • Currency companies can only provide you a true rate when they have your funds ready to transfer.

Remember exchange rates often change by the minute.  To compare providers properly you need to do it simultaneously – which is practically impossible.

How are exchange rates calculated?

The rate you are offered will be dependent upon a number of factors including:

  • The amount of money you are transferring.
  • The currencies you are buying and selling as well as the volatility of those currencies.
  • The exchange rate levels at the time of purchase.

Key here is the amount of money you are transferring. A ZAR 500,000 (or equivalent) transfer is not big as far as the banks are concerned, so the rate you get will be effected.

How do you get a better rate?

The short answer is to use a currency company such as Incompass. Although the banks still make their profit on each and every trade, you get the benefit of bulking when you use our services.

Although each trade we carry out is an individual trade, all of our clients fall under the Incompass umbrella. This means each and every one of our clients benefits from a better rate due to the billions of rand a year we transfers on their behalf.

3. Avoiding excessive fees when you transfer money out of South Africa.

Incompass charges no transfer fees for transactions over ZAR 50,000 or its rand equivalent. Even if you are below this threshold, we keep the charge to a minimum (just to cover the bank fees) at ZAR 250.

Typically a bank will impose a charge (often referred to as a service fee) of anywhere between ZAR 350 and ZAR 6700 per transaction.

4. You should be a valued client

You should not put up with inferior service or being given the runaround when you're transferring money out of South Africa.

The terminology 'transferring money' is in many ways a bit confusing.

The bottom line is you are making a purchase of another currency. Imagine you were spending the same amount of money buying a car as what you're transferring. What sort of service levels would you expect? How would you wish to be treated?

The reality is you are a client, spending a lot of money on your money transfer. You should expect and receive first class service.

Incompass is the only currency company in South Africa to have been awarded the ISO 9001 standard for service levels.

In summary

Using Incompass when you transfer money out of South Africa means:

  • Obtaining a better rate by bulking transactions rather than treating every transaction as an individual one. This can mean up to 4.5% more currency for your money. For example, on a transfer of ZAR 4 million this could mean an additional ₤17,000.
  • Speaking to the expert straight away. You get great advice and personalised service with no waiting.
  • No concerns over obtaining tax clearances or understanding the myriad of exchange control regulations – we take care of all that for you.
  • We open a cash account for you with our authorised dealer to aid and ease your transfers, and to save you money.

Get better rates and better service when sending money out of South Africa.

Trusted

Our guarantees

  • Market leading forex rates.
  • No administration fees.
  • ISO 9001 accredited service levels.
  • ISO 27001 accredited security levels.
  • 100% transparency on all money transfers.
  • Tailored services to meet  your money transfer needs.
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Phone: +27 (0) 21 424 2936

Fax: +27 (0) 86 568 2086

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