South Africans can soon transfer up to R2 million offshore without Sars pre-approval, marking a significant change in exchange control policy. Discover how this new allowance can benefit you amidst a weakening rand.
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The amount South Africans can send offshore without Sars clearance hasn’t budged since 2011. That’s about to change. On February 25, Finance Minister Enoch Godongwana announced that the Single Discretionary Allowance (SDA) will double from R1 million to R2 million per person, per calendar year. It’s the most significant overhaul of exchange control policy in nearly 15 years.
The SARB has already published draft circulars to formalise the change, and the comment period closed on March 17, 2026. While the final circular confirming the effective date hasn’t been made yet, implementation is widely expected by late March or early April.
For now, the old R1 million limit technically still applies at most banks. Once it does take effect, here’s what it means in practice:
1. You can move R2 million offshore without asking Sars first
Under the current system, any South African resident aged 18 or older can transfer up to R1 million per calendar year abroad without needing a Tax Compliance Status (TCS) PIN from Sars. Once the new limit goes into effect, that figure doubles, requiring no pre-approval, no special applications, or the need for supporting documents. You simply instruct the bank of your intention to make the transfer and proceed.
For married couples, this gets even better. Each spouse holds their own individual allowance, which means a household could transfer up to R4 million per year under the SDA alone.
2. The total annual offshore allowance increases to R12 million
The SDA complements the Foreign Investment Allowance (FIA), which permits transfers of up to R10 million per person per year, but it requires a Sars Approval of International Transfer (AIT) and full tax clearance.
But because the SDA has doubled, your combined annual offshore capacity as an individual is now R12 million (R2 million SDA + R10 million FIA), up from the previous R11 million. It’s a meaningful increase, particularly for those who want to move a moderate sum quickly and painlessly.
3. A weaker rand makes a higher threshold matter more
The timing of this increase coincides with renewed pressure on the rand. Since the US-Israeli strikes on Iran began on February 28, oil prices have surged toward $110 a barrel, risk appetite has collapsed globally, and the rand has weakened roughly 5.8% in a month, trading around R16.95 to the dollar at the end of last week. For a net fuel importer like South Africa, that’s a toxic combination.
In practical terms, a weaker rand means your R1 million buys fewer dollars, pounds, or euros than it did even two months ago. Doubling the SDA to R2 million doesn’t just reduce paperwork; it gives South Africans the capacity to move a more meaningful sum offshore at a time when the currency is under strain, whether that’s for investments, education, emigration planning, or simply protecting purchasing power.
When the rand weakens, your offshore allowance shrinks in real terms. A R1 million transfer bought you roughly $63,000 at the start of the year. Today it’s closer to $59,000. Doubling the SDA restores the flexibility South Africans need to make offshore transfers that are more substantial.
4. This is a correction
The SDA was introduced at R500,000 in 2008, doubled to R1 million in 2011, and then left untouched for close to 15 years. Inflation and rand depreciation steadily eroded its real value over that period. By 2026, that R1 million will have bought roughly half what it did when the limit was last adjusted.
The new R2 million threshold mostly restores the original purchasing power. National Treasury's Annexure E confirms the increase was made to account for inflation and currency fluctuations, with a commitment to review the limit regularly going forward. Welcome as it is, this is an overdue update.
5. The timing is unusually favourable
South Africa’s fiscal position has improved more in the past 12 months than in the previous decade. Exiting the FATF grey list in October 2025 unlocked our first credit rating upgrade in 16 years, which in turn gave the Treasury the confidence to scrap R20 billion in planned tax hikes and finally adjust income tax brackets for inflation.
For South Africans considering offshore diversification, that creates an unusual alignment: a more stable fiscal backdrop, a friendlier regulatory environment, and a doubled SDA at the same time.
Hold at least 50% of your wealth offshore to cushion against rand devaluation and global uncertainty. Many South Africans tend to wait for the perfect moment to move money offshore, but the perfect moment is usually the one you missed. A friendlier regulatory environment and a doubled SDA don’t come around together very often. It’s better to utilise your offshore allowance consistently, each year, rather than trying to time the currency.
Banks and forex providers are waiting on the final SARB circular before they can process transfers at the new R2 million threshold. The allowance resets every January, and unused portions don’t carry over, so it’s a case of use it or lose it.
* Scherzer is the CEO of Future Forex.
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