Moving the money out, legally.

How much can you take out?

Up to R12 million per adult, per calendar year — R2 million under the single discretionary allowance with no tax clearance, plus R10 million under the foreign capital allowance with a SARS Approval International Transfer (AIT) PIN. For a couple, that is up to R24 million a year. Above R10 million per person, South African Reserve Bank approval is required through your bank, and is routinely granted for legitimate, tax-compliant capital.

One misconception worth clearing: “financial emigration” no longer exists as a status. It was removed with effect from 1 March 2021. What matters now is your tax residency with SARS — a different question, with different consequences, and one you do not have to answer in order to obtain a second residence.

Five steps, in this order.

The order matters. Most of the trouble we are asked to unpick comes from funds that moved before the tax position was established.

1. 1

   Establish your tax position

   Before anything moves, confirm whether you are — and intend to remain — a South African tax resident. This determines everything that follows, including whether a section 9H exit charge is in play.

2. 2

   Use the discretionary allowance first

   The R2 million single discretionary allowance needs no tax clearance. For a couple that is R4 million per calendar year, which for some routes is a meaningful share of the investment.

3. 3

   Apply for the SARS AIT PIN

   For the R10 million foreign capital allowance, apply through SARS eFiling for an Approval International Transfer PIN. Expect to evidence the source of the funds and to be fully compliant on all returns.

4. 4

   Transfer through an authorised dealer

   Funds move via a bank or authorised dealer, who reports the transaction to the Reserve Bank against your allowance and the AIT PIN. Compare their margin — it is negotiable and frequently exceeds the transfer fee.

5. 5

   Fund the investment and keep the trail

   The destination jurisdiction will require proof that funds arrived from a declared, lawful source. The exchange-control paperwork is part of the residence application file, not separate from it.

Exchange control, answered.

How much money can you take out of South Africa when you emigrate?

It depends on whether you are still a South African tax resident. While you remain one: R2 million per calendar year under the single discretionary allowance without tax clearance, plus up to R10 million per calendar year under the foreign capital allowance with a SARS Approval International Transfer (AIT) PIN — R12 million per adult, R24 million for a couple — with anything above R10 million requiring South African Reserve Bank approval through your bank. Once you have ceased tax residence a different regime applies: a once-off R2 million travel allowance in the calendar year you cease, with no TCS PIN; household and personal effects up to R2 million per family unit; and R10 million per calendar year thereafter with a SARS AIT PIN, with more than that subject to enhanced SARS verification and Reserve Bank approval. "Financial emigration" as a status was phased out on 1 March 2021 — what matters now is your tax-residency status with SARS, not an emigration formality.

Do I have to emigrate financially to move money offshore?

No, and the concept no longer exists in the old form. The Reserve Bank removed the "financial emigration" process with effect from 1 March 2021. You use the annual allowances as a resident, and separately decide whether and when to cease South African tax residency with SARS. Many families obtain a second residence while remaining South African tax residents — those are two different decisions.

What is the section 9H exit tax?

When you cease to be a South African tax resident, section 9H of the Income Tax Act treats you as having disposed of your worldwide assets at market value on the day before cessation, triggering a capital-gains charge. Certain assets, notably South African immovable property, are excluded. It is not a penalty for leaving and it is not triggered by acquiring a second residence or passport — only by ceasing tax residency. It should be modelled before you act, not after.

Can I use my children’s allowances?

The single discretionary allowance is available to South African residents aged 18 and over, so an adult child has their own R2 million. Children under 18 have a travel allowance of R400,000 a calendar year instead, intended for their own purposes. Using a family member’s allowance to move your money is a contravention of the exchange-control rules, and banks look for it.

Does buying property abroad for residence count against my allowance?

Yes. A qualifying property purchase or programme contribution is a foreign investment and is funded out of your allowances, with the AIT PIN where the foreign capital allowance is used. This is why the exchange-control planning and the programme selection have to happen together — the allowance calendar can determine which route and which timeline is actually achievable.

What happens if I get this wrong?

Exchange-control contraventions can result in the funds being blocked or repatriated, administrative penalties, and difficulties evidencing the source of funds to the destination jurisdiction — which can in turn sink the residence application. The rules are navigable; the failures we see come from moving first and asking afterwards.