Transferring Money can be a Complex Process

Background and Regulatory Changes

Key changes include:

• No need for SARB approval for emigration, but remittances still require verification, including risk management tests in certain cases.
• TCS from SARS is required for remittances above R1 million, obtained via the SARS TCR01 ‘Emigration’ form for tax-compliant taxpayers aged 18 and older.
• Transfers above R10 million require stringent SARS verification and potential SARB approval, including anti-money laundering and counter-terror financing assessments under the Financial Intelligence Centre Act, 2001 (FICA).

Cease Tax Residency in South Africa

• Why It’s Necessary: Ceasing tax residency is crucial for transferring larger amounts of funds and avoiding double taxation. It also allows access to retirement fund withdrawals after three years of non-residency.
• How to Proceed:
  • Submit a declaration to SARS indicating you are no longer a tax resident, typically through the SARS eFiling system. Criteria include not being physically present in South Africa for more than 91 days in a tax year, not maintaining a permanent home, and not being ordinarily resident.
  • If you have assets or income in South Africa, you may need to pay an exit tax on unrealized capital gains before ceasing tax residency, as outlined in recent tax emigration guides.
• Timeline: This process can take 7–21 business days, so plan ahead.

Obtain Necessary SARS Approvals

• For Transfers Up to R1 Million: If you are still a tax resident, you can use your Single Discretionary Allowance (SDA) without needing a TCS PIN. This is available annually and does not require tax clearance.
• For Transfers Between R1 Million and R10 Million: Obtain a Tax Compliance Status (TCS) PIN from SARS via eFiling. This is now part of the Approval for International Transfer (AIT) process, combining previous “Emigration” and “Foreign Investment Allowance” TCS PINs. The TCS PIN confirms tax compliance and is valid for 12 months, necessary for transferring liquid assets or early retirement withdrawals.
• For Transfers Above R10 Million: Additional verification by SARS is required, including an anti-money laundering and counter-terror financing risk assessment. SARB approval may also be needed for very large transfers, as per Circular 6 details.
• Key Notes on TCS PINs:
  • If you have ceased tax residency, apply for the “Emigration TCS PIN” for liquid asset transfers.
  • If still a tax resident but transferring funds offshore, you may need the “Foreign Investment Allowance TCS PIN” to confirm the legitimacy of funds.

Choose an Authorized Foreign Exchange Provider

• All international money transfers must be conducted through authorized dealers to comply with exchange control regulations. Options include:
  • Commercial Banks: Standard Bank, Absa, FNB, Nedbank, or Capitec.
  • Forex Specialists: Domisa Treasury, Exchange4Free, or Sable International.
  • Online Platforms: Wise or Revolut for cost-effective transfers.
• Provide your chosen provider with necessary documentation, such as your SARS TCS PIN, valid South African passport, proof of US residency or visa (e.g., Green Card), and proof of source of funds (e.g., bank statements).

Transfer Funds

• Methods:
  • Bank Transfer: Transfer US dollars directly to a US bank account. Open a US bank account (e.g., with Chase or Bank of America) before initiating the transfer, as some banks allow non-residents to open accounts with a passport or ITIN.
  • Prepaid Travel Cards: Load US dollars onto a multi-currency card (e.g., Wise or Absa Multi-currency Cash Passport) for smaller amounts or initial expenses. These cards are useful for daily spending and ATM withdrawals, with fees varying by provider.
  • Cash: Purchase US dollars for emergencies, but limit to $1,000–$2,000 for safety and convenience, as carrying large cash amounts is risky.
• Timing: You can initiate transfers once you have ceased tax residency and obtained the necessary SARS approvals. Funds can be transferred up to 60 days before departure for cash purchases.

Declare Currency

• When Leaving South Africa:
  • Declare cash (ZAR or USD) exceeding R25,000 via the SARS online Traveller Declaration system, accessible through the SARS Mobi App or website SARS Traveller Declaration. Receive an email confirmation for customs inspection.
  • Non-declaration can result in seizure of funds and penalties.
• When Entering the United States:
  • Declare cash or monetary instruments exceeding $10,000 to US Customs Service upon arrival using Form FinCEN 105. Failure to declare can lead to seizure or fines.

Manage Remaining Assets

• After Ceasing Tax Residency:
  • You can transfer remaining South African assets (e.g., property, investments) abroad, subject to SARS verification and exchange control rules. There is no longer a “blocked funds account”; income and capital from inter vivos trusts and pre-inheritance gifts can be transferred abroad, subject to tax compliance.
  • Retirement Funds: You can withdraw retirement annuities as a lump sum only after three consecutive years of being tax non-resident. For funds worth R247,500 or less, you can withdraw the full amount; for more, one-third can be withdrawn, and the rest must be transferred to a living annuity.

Maximum Amounts and Allowances

• For Tax Residents:
  • Single Discretionary Allowance (SDA): R1 million per calendar year (January to December) for any legal purpose, no TCS required.
  • Foreign Investment Allowance (FIA): R10 million per year, requires SARS TCS PIN for verification.
• For Tax Non-Residents:
  • There is no strict limit, but transfers are subject to SARS verification and exchange control compliance. Amounts above R10 million require additional SARS and SARB approval, including risk assessments under FICA.

Charges and Fees

• Exchange Rate Markups:
  • Banks typically add a 1–2% markup to the mid-market exchange rate. For example, with USD-ZAR at ~18.3938 in 2025 (fluctuating between 17.2265–19.8455), a bank might charge R1,866,971 for a $100,000 transfer at a 1.5% markup.
  • Forex specialists like Wise offer lower markups (e.g., -0.05%), resulting in a cost of ~R1,840,299 for the same transfer.
• Transaction Fees:
  • Banks: Charge commissions (0.5–1% of the amount, e.g., R13,796 for $100,000) and SWIFT fees (~R200–R500 per transfer).
  • Forex Specialists: Lower or no commissions (e.g., Exchange4Free or Wise, with fees around 0.4%, or R7,358 for $100,000).
  • Prepaid Cards: Loading fees (1–2%), ATM withdrawal fees ($2–$5 per withdrawal), or inactivity fees. Check terms with providers like Absa or Wise.
• Cheapest Options: Wise and Revolut are recommended for their near mid-market rates and low fees, potentially saving ~R33,410 compared to banks for a $100,000 transfer.

Practical Tips for Permanent Relocation

• Open a US Bank Account Early: Use a US bank like Chase or Wells Fargo for receiving transfers. Some banks allow non-residents to open accounts with a passport or ITIN, facilitating easier access to funds.
• Mix Payment Methods: Carry limited USD cash ($1,000–$2,000) for emergencies, use a prepaid card (e.g., Wise) for daily spending, and transfer bulk funds directly to your US account to minimize risks.
• Monitor Exchange Rates: Use tools like XE.com or Domisa Treasury for real-time rates to time your transfers for better savings, especially given the volatility of the ZAR.
• Seek Professional Help: Engage a forex specialist (e.g., Domisa Treasury) or tax advisor for large transfers or complex asset liquidation, especially for retirement funds or assets above R10 million. Companies like Sable International offer expertise in navigating these regulations.
• Tax Considerations: Cease South African tax residency to avoid double taxation, but comply with US tax obligations, such as IRS reporting via the Foreign Bank Account Report (FBAR) for foreign accounts.
• Customs Compliance: Complete South Africa’s online Traveller Declaration before departure and declare $10,000+ to US Customs on arrival to avoid penalties.

Additional Considerations

• Retirement Funds: Post-2021, you can withdraw retirement annuities after three years of tax non-residency. For funds over R247,500, one-third can be withdrawn, and the rest must be transferred to a living annuity, as per recent regulations.
• Blocked Assets: After ceasing tax residency, remaining South African assets are not “blocked” but can be transferred abroad with SARS approval, subject to exchange control rules.
• US Visa Requirements: Ensure you have a valid US visa (e.g., Green Card or employment visa) as proof of residency for SARS and exchange control purposes, facilitating the transfer process.

Table: Summary of Key Allowances and Requirements

Conclusion

Key Citations

• Bowmans Law South Africa Exchange Control Emigration
• FinGlobal International Money Transfer from South Africa
• Rand Rescue Tax Emigration from South Africa
• Sable International South African Exchange Control Regulations
• TaxTim Blog SA Cash Out Retirement Annuity
• FinGlobal Guide to International Money Transfer
• Sable International Transfer Funds Out of SA
• SARS Traveller Declaration
  

Exporting Valuables Like Gold and Silver Coins When Emigrating from South Africa

Declare Valuables at Customs

• All travelers, including emigrants, must declare valuable goods when departing South Africa. This includes gold and silver coins, jewelry, watches, cameras, and other high-value items.
• Use the SARS online Traveller Declaration system, accessible via the SARS Mobi App or website, or complete a manual Traveller Card (TC-01) for declaration SARS – Traveller Declaration.
• If carrying cash or valuables exceeding R25,000, declare them to avoid penalties or seizure. Customs officers may search and seize currency under Regulation 3(3) and 3(6) of the Exchange Control Regulations

Specific Regulations for Gold and Silver Coins

• Gold Coins (e.g., Krugerrands):
  • Research suggests you can export up to R30,000 worth of Krugerrand coins without requiring additional approval, based on information from financial advisors like FinGlobal. For amounts exceeding R30,000, you must obtain exchange control approval from the Financial Surveillance Department of the SARB.
  • Krugerrands are considered gold bullion, and their export is subject to these specific limits. Declare all Krugerrands to SARS Customs and Excise on departure.

Source: FinGlobal – How Many Krugerrands Can I Take Out of South Africa

• Silver Coins:
  • It seems likely that silver coins are treated as part of currency or numismatic coins for export purposes, with a limit of R300 permissible without approval, according to FinGlobal’s guidance on exporting South African coins. However, for valuable silver bullion coins, the evidence leans toward declaration being essential, and for large amounts, exchange control approval may be required.
  • The controversy exists around exact limits for silver coins, as specific regulations are less clear, and they may be subject to general customs valuation rather than a fixed limit. Declare all silver coins at customs, especially if their total value is significant.

Source: FinGlobal – Exporting South African Coins and Numismatic Items

• General Precious Metals:
  • Precious metals, including gold and silver, must be declared when leaving South Africa. If the value is high, additional approvals may be required, especially for emigrants transferring assets as part of their emigration allowance.

Emigration-Specific Considerations

• Asset Transfer: As an emigrant, you are allowed to transfer your assets, including physical valuables like gold and silver coins, as part of your emigration allowance. There is no strict limit on transferring assets for tax non-residents, but all transfers must comply with SARS and SARB regulations.
• Customs Compliance: Ensure all valuables are declared, and for large values, obtain necessary approvals. When entering the US, declare cash or valuables exceeding $10,000 to US Customs and Border Protection.

Practical Steps for Exporting Valuables

• Obtain Necessary Approvals: For gold coins like Krugerrands exceeding R30,000, or for large quantities of silver coins, contact the SARB for exchange control approval. If your total asset transfer (including cash, investments, and valuables) exceeds R1 million, ensure you have the required SARS approvals.
• Consider Professional Assistance: Emigration involves complex regulations, so consider consulting a financial advisor or a company specializing in emigration, such as FinGlobal, to ensure compliance with all requirements FinGlobal – Exchange Control South Africa.
• Safety: When carrying physical valuables like gold and silver coins, ensure they are securely stored and insured during transit.

Maximum Amounts and Allowances

The maximum amounts you can export depend on the type of coin and your tax residency status:

• For Gold Coins (Krugerrands): Up to R30,000 without additional approval; larger amounts require SARB approval.
• For Silver Coins: Likely up to R300 for currency or numismatic coins without approval, but for valuable silver bullion, declare and possibly seek approval for larger amounts.
• General Valuables: Must be declared, with no specific monetary threshold mentioned, but cash over R25,000 requires declaration.

Charges and Fees

Transferring or exporting valuables involves various costs:

• Exchange Control Fees: There are no direct fees for declaring valuables at customs, but if you need SARB approval for large amounts of gold or silver, there may be administrative fees.
• Customs Duties: No duties are typically payable on personal valuables when emigrating, but you must declare them to avoid penalties.
• Bank or Forex Fees: If you are transferring funds or converting currency to purchase gold or silver coins, banks or forex providers may charge transaction fees or markups on exchange rates, with Wise and Revolut offering lower costs (e.g., Wise at -0.05% markup).

Table: Summary of Key Allowances and Requirements for Exporting Valuables

Additional Considerations

• Retirement Funds: Post-2021, you can withdraw retirement annuities after three years of tax non-residency, which may affect your overall asset transfer strategy.
• US Customs: Ensure compliance with US regulations, declaring valuables over $10,000 upon arrival to avoid penalties.
• Monitor Exchange Rates: The value of gold and silver fluctuates, so consider timing your export for optimal rates, using tools like XE.com for real-time rates.