Exchange control regulations restrict the flow of capital in and out of 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, i.e. authorised dealers in foreign exchange (with a foreign exchange license).
“In short, for most immigrants the question is can I take my money back out of South Africa?”
The answer unfortunately is neither short nor simple.
Which rules and regulations influence you personally depends on your status upon your arrival in SA. Most probably, you will be regarded as an immigrant.
An immigrant is a national of another country who comes to South Africa with the intention of residing here permanently, i.e. he or she formally immigrates and takes up permanent residence. An emigrant who returns to South Africa after five years will be treated on the same basis.
The key to ensuring the smooth outflow of capital back out of South Africa lies within doing the basic things right – paperwork trails, reserve bank compliance and proper planning. It is these areas that often cause complications and lead to assumptions of difficulties and rumors.
Our international tax expert will be able to advise and guide you through the regulations, requirements and advise you on actions that should be taken.
