Part of Investing: guides on bringing capital into South Africa, investing your own money, and the rules that apply.
Exchange control in South Africa decides how money crosses the border. A foreign investor can bring capital in and take it out again, and a resident can send up to R12 million a year offshore through a bank without special Reserve Bank permission. The catch, both ways, is paperwork: money that arrives properly recorded can leave again.
This guide is for foreign entrepreneurs putting money into a South African business, and for South African owners and companies investing abroad. It covers the rules in force on 29 September 2026, including the 2026 Budget changes that doubled the single discretionary allowance and removed the interest rate cap on foreign loans, and the draft regulations that will replace the 1961 system.
This guide was last reviewed on 29 September 2026 and is general information, not legal, immigration, tax or investment advice.
Who runs exchange control and where the rules live
The legal base is the Currency and Exchanges Act of 1933 and the Exchange Control Regulations of 1961. Day-to-day administration is delegated to the Financial Surveillance Department of the South African Reserve Bank (FinSurv), which sets out what banks may approve in the Currency and Exchanges Manual for Authorised Dealers (current version dated 25 June 2026).
You deal with an authorised dealer: a bank, or for smaller amounts a licensed bureau de change, that FinSurv has authorised to deal in foreign exchange. Regulation 2(1) of the Exchange Control Regulations says that, without Treasury permission, nobody else may buy, borrow, sell or lend foreign currency.
FinSurv’s plain-language guidelines for individuals are dated 7 January 2026 and still show the old R1 million allowance; where they differ from the manual and the April 2026 circulars, the manual is the current rule.
A resident is a person or entity with permanent residence, domicile or registration in South Africa; a non-resident is one whose normal residence, domicile or registration is outside the Common Monetary Area (South Africa, Lesotho, Namibia and eSwatini). A South African company owned by foreigners is still a resident (section A.1).
Bringing foreign investment into South Africa
Section G.(C)(i) says non-residents “may freely invest in South Africa”, provided the deal is at arm’s length, at a fair market price and financed in an approved manner: foreign currency converted through an authorised dealer, rand from a Non-resident Rand account (a rand account designated for a non-resident, section E.(A)), rand from a foreign bank’s vostro account, or local borrowing within section I.1. Visa capital rules are separate: see our guides to the business visa and dtic recommendation and visas for investors and entrepreneurs.
Why inward records decide whether money can leave later
Section G.(C)(ii) says the local sale or redemption proceeds of non-resident owned assets “may be regarded as freely transferable”. The mechanism is the paper trail. Securities owned by non-residents are endorsed “Non-Resident” (section G.(F)), and FinSurv’s guidelines for business entities say this ensures that on a sale “the payment may be transferred abroad or credited to a Non-resident Rand account”. The same guidelines put the onus on the South African buyer or seller to prove the price was fair. Keep the transfer and conversion confirmations, the endorsed share register entry and the purchase agreement: a bank asks for them when proceeds go home.
Loans from foreign shareholders and lenders
A South African company borrowing from a non-resident, including its foreign parent, needs authorised dealer approval, and the loan must be recorded on FinSurv’s Loan Reporting System (section I.3(B)). The manual requires a tenor of at least one month, no upfront fees (fees may be paid once the loan is received and converted, capped at 5 per cent of the principal), and an interest rate that is market related in the loan’s currency or normal in the trade.
What changed in 2026: Exchange Control Circular 14/2026 of 8 April 2026 removed the interest rate thresholds for new inward foreign loans and trade finance. For related-party loans, the bank needs senior management’s confirmation that transfer pricing documentation is kept as SARS prescribes, and must refer to SARS Interpretation Note 127 of 17 January 2023. Tax limits on connected-party interest still apply. Interest on an approved loan may be transferred abroad (section B.3(B)(ii)(b)); an unapproved loan must first be regularised through FinSurv (section I.3(B)(v)).
Local borrowing by foreign-owned companies
A company is an “affected person” when 75 per cent or more of its capital, earnings or control sits with non-residents (section A.1). Banks may lend to affected persons without restriction for ordinary business, but for financial transactions or residential property a 1:1 ratio applies: R1 of local borrowing for every R1 the non-resident introduces or owns (section I.1(D)).
Dividends and profits
Banks may transfer dividends and profit distributions to non-residents in proportion to their shareholding (section B.3(B)(i)). For a dividend from a South African company the bank needs a SARS TCS AIT PIN if the beneficiary is registered with SARS, or a Manual Letter of Compliance for international transfer if not.
Offshore allowances for South African residents
Individuals aged 18 and older have two allowances, each counted per calendar year (January to December), not per tax year.
Single discretionary allowance: R2 million
The 2026 Budget Review raised the single discretionary allowance (SDA) from R1 million to R2 million “to take into account inflation and currency fluctuations”. Exchange Control Circular 6/2026 made it effective on 8 April 2026. Under section B.4(A) it may be used “for any legal purpose abroad”, including investment, travel, gifts and loans to non-resident individuals, with no documents beyond a ticket for travel and a green bar-coded ID book or smart ID card. Under-18s get a travel allowance of R400,000 a year instead (previously R200,000).
Section B.4(A) does not require a SARS tax compliance PIN for the SDA, and a SARS statement of May 2023 said no tax compliance status was needed for yearly transfers up to the then R1 million limit. As at 29 September 2026 we found no SARS statement restating this for R2 million.
Foreign capital allowance: R10 million
Banks and SARS forms often call it the foreign investment allowance; the manual calls it the foreign capital allowance. Section B.2(B)(i)(a) lets a bank transfer up to R10 million per calendar year for investment abroad for an individual aged 18 or older who is “a taxpayer in good standing”, via an AIT. The 2026 Budget left it unchanged. To invest more, you apply to FinSurv through your bank, and approved investments may be made through a foreign trust (section B.2(B)(i)(l)).
How SARS’s Approval International Transfer works
In April 2023 SARS replaced its separate foreign investment allowance and emigration tax clearance applications with one Approval International Transfer (AIT), as its tax compliance status page explains. You apply on eFiling under Tax Status. SARS issues a TCS PIN, which your bank uses to check your status before sending money, and the bank may not exceed the amount SARS approved. The PIN can expire; SARS’s eFiling tax compliance guide (effective 28 August 2026) has the applicant choose its expiry in months. SARS’s AIT supporting documents page asks for:
- proof of the source of the money, specific to each source (savings, sale of shares or property, inheritance, loans, donations, crypto asset sales and others);
- bank statements issued no more than 14 days before you submit;
- a statement of local and foreign assets and liabilities for the previous three tax years;
- a power of attorney if someone applies for you.
SARS publishes no processing time. Get your returns up to date first (see our beginner’s guide to tax filing).
Offshore allowances and limits at a glance
| Who | What | Annual limit | Tax requirement | Where to apply | Source (verified 29 September 2026) |
|---|---|---|---|---|---|
| Resident individual, 18+ | Single discretionary allowance, any legal purpose | R2 million per calendar year | No TCS PIN under section B.4(A) | Any authorised dealer | Manual B.4(A)(i); Circular 6/2026 |
| Resident individual, 18+ | Foreign capital (investment) allowance | R10 million per calendar year | Good standing; SARS AIT and TCS PIN | SARS eFiling, then your bank | Manual B.2(B)(i)(a) |
| Resident individual | Investment beyond R10 million | Case by case | AIT and TCS PIN | FinSurv, through your bank | Manual B.2(B)(i)(l) |
| Resident under 18 | Travel allowance | R400,000 per calendar year | None stated | Authorised dealer | Manual B.4(B)(i)(b) |
| South African company | New outward foreign direct investment | R5 billion per company per calendar year | Not set by the manual | Authorised dealer; above R5 billion, FinSurv | Manual B.2(C) |
| Individual or company | Card payments for imports, services, subscriptions | R100,000 per transaction | None stated | Card issuer | Manual B.16(E); Circular 12/2026 |
South African companies investing abroad
Under section B.2(C)(i), a bank may approve a company’s new foreign direct investment up to R5 billion per company per calendar year. The company must take at least 10 per cent of the foreign entity’s voting rights; passive real estate held for appreciation does not qualify. The bank needs registration details, shareholders (for private companies), latest financial statements, how the deal is funded, the holding structure and the target’s business. Afterwards, the foreign entity’s financial statements go to FinSurv annually, dividends declared, repatriated or retained must be reported annually, net proceeds of a sale to non-residents must come home, and South Africa must remain the place of effective management. Since 23 February 2022 approved foreign branches may keep their profits abroad, subject to annual reporting.
A loop structure, where a resident’s foreign company invests back into South Africa, is allowed if reported to the bank, an annual progress report goes to FinSurv and an auditor confirms arm’s length pricing (sections B.2(B)(i)(h) and B.2(C)(i)(f)(ee)). Loop structures from before 1 January 2021, or that breached the 40 per cent shareholding threshold, must still be regularised.
Individuals who already hold offshore assets
Under section B.17, residents need not bring home income earned on approved foreign assets or for work done while physically abroad, foreign inheritances from non-residents, or (since 23 February 2022) gifts from non-residents, subject to tax disclosure. Since that date you may also sell or donate authorised foreign assets to other individuals, or lend them to other residents. Earlier contraventions must still be regularised.
Two rules catch people. Offshore online trading accounts, including crypto trading platforms, may be funded only from the SDA or foreign capital allowance by bank transfer, never with a South African card (section B.2(B)(i)(p) and (q)). And money you brought into South Africa after 1 July 1997 can be sent back out without using your allowances, but only the amount introduced, not its growth, and only with proof it was converted to rand (section B.2(B)(ii)).
Step by step: moving money in and out
A foreign investor
- Open a bank account for the South African company with an authorised dealer, and a Non-resident Rand account if you will hold rand personally.
- Agree a price and keep evidence that it is fair and at arm’s length.
- Transfer the foreign currency and have it converted; keep the confirmations.
- Have the shares endorsed “Non-Resident”.
- For a shareholder loan, get bank approval and a Loan Reporting System entry before the money moves.
- For dividends, obtain the SARS PIN or letter of compliance; for a sale, give the bank the agreement and your original records.
Illustration only: a non-resident brings in foreign currency worth R10,000,000 for 40 per cent of a company, and the shares are endorsed. Years later the stake sells for a fair R14,000,000. The full R14,000,000 can be transferred abroad under section G.(C)(ii), after any tax due.
A resident investing offshore
- Up to R2 million a year: go to your bank with your ID and state that it is SDA.
- Beyond that: apply for an AIT on eFiling with the supporting documents.
- Give the TCS PIN to your bank, which sends up to the approved amount.
- Declare the investment and its income in your tax returns.
Illustration only: to invest R5,000,000 in 2026, a resident sends R2,000,000 under the SDA and R3,000,000 under the foreign capital allowance with an approved AIT, leaving R7,000,000 of that allowance unused.
What is in force and what is still proposed
| Measure | Status on 29 September 2026 |
|---|---|
| SDA raised to R2 million; under-18 travel allowance to R400,000 | In force from 8 April 2026 (Circulars 6 and 7 of 2026) |
| Interest rate criteria on new inward foreign loans removed | In force from 8 April 2026 (Circular 14/2026) |
| Card payments R100,000 per transaction; miscellaneous payments to non-residents R200,000; rand notes when travelling R100,000 | In force from 8 April 2026 (Circulars 12, 11 and 8 of 2026) |
| Draft Capital Flow Management Regulations, 2026, to replace the 1961 regulations | Proposed; comment closed 30 June 2026; not promulgated |
| Draft Crypto Asset Manual for cross-border activities | Proposed; comments due 30 September 2026 |
The SARB’s Circular 3/2026 reproduces the 2026 Budget Review annexure that announced these measures. National Treasury published the draft Capital Flow Management Regulations on 17 April 2026, describing a risk-based system with fewer pre-approvals, more reporting, rules for cross-border crypto transactions and increased penalties, and later extended comment to 30 June 2026. Circular 19/2026 of 31 July 2026 said the regulations were “presently under review”, and the crypto manual will only follow their promulgation. Until then the 1961 regulations and the manual apply. The 2025 Budget’s changes were modest: farmers may hedge on foreign commodity exchanges, and travellers may deposit unused foreign currency into a foreign currency account.
What goes wrong, and the penalties
- Money in through the back door. Funds that bypass an authorised dealer leave no record to support a later repatriation.
- Unapproved shareholder loans. Section G.(C)(i) says creating a loan account between a resident and a non-resident needs prior approval.
- Splitting to dodge limits. A card payment above R100,000 may not be split (section B.16(E)), and the SDA may not disguise transfers that would otherwise be refused (section B.4(A)(xii)).
- Keeping foreign currency abroad without authority. Regulation 6 requires residents to declare foreign currency they become entitled to within 30 days, unless an exemption applies.
Regulation 22 makes a contravention an offence punishable by a fine of up to R250,000, imprisonment of up to five years, or both; where money, securities or goods are involved, the fine may instead equal their value if that is greater. Regulations 22A to 22C allow attachment, account blocking and forfeiture.
The manual’s route for fixing a contravention is regularisation: an application to FinSurv through your bank. Tax defaults are handled separately through SARS’s permanent Voluntary Disclosure Programme, applied for on eFiling, which covers tax, not exchange control.
These rules change by circular. Before any significant transaction, ask your bank’s authorised dealer (foreign exchange) desk or an exchange control specialist to confirm the specifics. For incentives, see our guide to dtic investment incentives; for the exchange rate, the rand dashboard.
Frequently asked questions
How much money can I send out of South Africa in 2026?
A resident aged 18 or older can send R2 million a calendar year under the single discretionary allowance and a further R10 million under the foreign capital allowance, R12 million in total. The R2 million limit has applied since 8 April 2026. Investing more needs a FinSurv application through your bank.
Do I need tax clearance for the R2 million allowance?
The SARB manual does not require a SARS tax compliance PIN for the single discretionary allowance; you need a valid South African ID. The R10 million foreign capital allowance does require an approved AIT and TCS PIN.
What is the SARS AIT?
Approval International Transfer is the SARS application, introduced in April 2023, that replaced the foreign investment allowance and emigration tax clearance options. You apply on eFiling with source-of-funds documents and a three-year statement of assets and liabilities. SARS does not publish a processing time.
Can a foreign investor take profits and sale proceeds out of South Africa?
Yes. Dividends can be transferred to non-resident shareholders in proportion to their shareholding, with a SARS PIN or letter of compliance, and sale proceeds of non-resident owned assets are freely transferable. The investment must have been properly recorded on the way in.
Is there a cap on interest a South African company pays a foreign lender?
Not under exchange control since 8 April 2026, when Circular 14/2026 removed the interest rate criteria for new inward foreign loans. The rate must still be market related, and related-party loans remain subject to SARS transfer pricing rules.
Can I buy crypto assets offshore with my allowance?
The manual lets individuals fund offshore trading accounts, including crypto trading, from their allowances by bank transfer only, not by card. A dedicated cross-border crypto framework was still in draft on 29 September 2026.
Have the Exchange Control Regulations been replaced?
Not yet. Draft Capital Flow Management Regulations published on 17 April 2026 would replace the 1961 regulations, but they had not been promulgated by 29 September 2026, so the existing regulations and the SARB manual still apply.
