Moving Rands Out of South Africa

Many people are currently preoccupied with the effect that the instability of the South African currency is having on their wealth. Accurately forecasting currency fluctuations is impossible, thus currency diversification is important.

According to a report by the New World Health and AfrAsia Bank, as the richest country in Africa, Mauritius' wealth has been primarily due to having a stable government, strong economic growth, and its ability to draw wealthy individuals to do business and live there.

However, South Africa has controls that allow the South African Reserve Bank to keep track of the outflow and inflow of capital in South Africa.

RE/MAX 24 clients undertake the process of moving funds out of South Africa daily. To assist you, we have detailed below some pointers based on our experience.

We recommend using a company that specialises in currency transfers around the globe - (eg InCompass) they offer the best rates as they buy currencies in bulk. They can guide you through the process and assist you in obtaining the correct documentation:

• Declaration of adherence to allowances
• Tax clearance
• Appropriate audit trail of money to be removed South Africa
• Reserve Bank clearance

Taxpayers over the age 18 who are South African residents are eligible for the following allowances:

Option 1: 1 million rand allowance annually where no SARS tax clearance is required. It includes travel, gifts and maintenance allowance. If you have already spent a few thousands internationally this year, the same will be deduced from the allowance.

Option 2: 10 milion rand of foreign investment allowance per annum where a SARS tax clearance certificance is required. This fund can be invested into offshore investment portfolio or be used for property purchase. For an investment allowance, you are allowed to apply once every 12 months.

Option 3: moving funds in excess of R10 million also need to be cleared by the South African Reserve Bank.

RE/MAX 24 Mauritius has a broad portfolio of properties in Mauritius to suit your budget and assist you in diversifying your investments.

Advice: Invest with an aim in mind and keep it simple. Claim your piece of paradise!