Offshore transfers of your money have become easier, but tax and timing traps still lurk. (Photo: iStock) The 2026 Budget quietly handed South Africans something different this year: freedom with fewer forms. The single discretionary allowance (SDA) has been increased to R2-million per adult per calendar year, which means a married couple can now legally move R4-million offshore each year with far less paperwork than before.
That sounds wonderfully simple, but as with most things involving money, tax and multiple jurisdictions, “simple” can turn into “surprise!” very quickly if you don’t think carefully about where that money lands and how it is structured.
“As South Africans are now able to externalise larger amounts more efficiently, the conversation should not end with how much can be moved offshore, but rather how those assets should be held to protect and preserve wealth over time,” says Therese Grobler, head of wealth management at Momentum Financial Planning.
What has changed is not just the amount you can move, but the ease with which you can do it.
Each adult resident can now use the R2-million single discretionary allowance without needing a SARS tax clearance certificate, while the foreign investment allowance still allows for up to R10-million more per person, subject to SARS and authorised dealer requirements.
For couples, that means up to R24-million a year can potentially be transferred offshore, provided everything is done within the rules.
What you should note
Know your limits: You can move up to R2-million per adult each year under the SDA without SARS tax clearance. Beyond that, the Foreign Investment Allowance still applies, but with more compliance requirements.
Don’t confuse easier with simpler: Moving money offshore is now administratively easier, but estate planning, tax treatment and exchange control rules still need careful handling.
Think about the wrapper: Holding offshore assets directly may work for some people, but for larger, long-term family wealth, an offshore trust may be worth considering as a structure.
Watch the costs and tax traps: Offshore trusts are not a bargain-bin solution. Set-up fees, annual running costs and South African tax rules, including Section 7C, can make a poor structure expensive.
Get advice before you press send: Offshore planning should be tied to your family goals, heirs, liquidity needs and tax position. A qualified financial adviser can help make sure your strategy is as sturdy as your suitcase.
However, there are other details you should be cognisant of. Harry Scherzer, CEO of Future Forex, says when the funds land and the amount is noticeably lower than expected, consumers often blame it on banking admin or processing fees. “That’s only partially correct. In reality, the shortfall is usually owing to the gap between the exchange rate checked and the rate the consumer actually received – plus the timing of the trade and, for larger amounts that require South African Revenue Service (SARS) clearance, how they handled the paperwork around the transfer,” he explained.
Scherzer explains that banks start with a wholesale market rate, add their own margin, then show you a price. The client sees only the final figure, not how much the bank has added to every unit of currency. On smaller transfers, that difference is annoying but easy to excuse. “However, if you move R100,000 at a 2% margin, you’ve given away R2,000; at R1-million, the same margin costs you R20,000, which is meaningful,” he points out.
“If you can’t see the underlying rate and the spread, you’re effectively signing a blank cheque on pricing. Those numbers should be transparent so clients can make a rational and informed choice,” Scherzer says.
Why timing matters
The rand can move a few percent in a short space of time, often on the back of politics, data or global sentiment. When it comes to international money transfers, a few percentage points can materially change what arrives on the other side, which is why many businesses plan around that – fixing rates for known future payments or setting clear trading levels.
How SDAs and approval of
international transfers can trip you up
When it comes to offshore transfer allowances, many people think this is a once-off transfer and don’t know that card swipes on overseas trips, online spend in foreign currency and small outward transfers also count towards the annual foreign exchange allowance.
Scherzer says some mistakenly go through the full AIT process for modest amounts that still fall within the SDA. Others exceed the R1-million SDA across different banks in the same year and only discover it when a routine transfer is stopped, and the bank insists on an AIT PIN and SARS clearance.
What causes the hold‑up? To apply for an AIT, SARS expects a full supporting file: recent bank statements, a three‑year statement of assets and liabilities, proof of the source of funds and, where relevant, trust deeds and resolutions, loan agreements, capital gains tax workings, wills and liquidation and distribution accounts.
SARS rejects or delays applications if statements are older than 14 days, if proof of source does not line up, or if trust and company documents contradict the transfer request.
If you have ceased South African tax residency, you can expect further checks. Officials will ask you to produce a non‑resident confirmation letter, detailed deemed‑disposal calculations and a clear explanation of the local income or capital you want to move. “Transfers from South African rentals, trust distributions, share disposals and inheritances all fall into this net, and the process can stall if your documentation is not in order,” Scherzer says.
Choosing the right channel: You can move money offshore through a retail app, a private bank or a forex specialist; all operate under the same SA Reserve Bank and SARS rules, but handle pricing, timing and compliance differently.
Scherzer explains: “By the time you hit ‘send’, most of the important decisions are already baked in.”
Retail apps are usually designed for speed and standardisation, applying fixed retail spreads across high volumes of transactions. Specialist providers, however, typically facilitate larger transfers and take a more tailored approach – giving careful attention to the spread, the timing of your transaction and hands-on support with compliance documentation. DM