We receive many queries from South Africans who have moved abroad, seeking to buy property in South Africa and rent it out pending an anticipated future return.
If you have not formally emigrated and have a South African ID, you remain a ‘financial resident’ of SA. This means that you can remit R10 million abroad annually as an investment provided that you have a tax clearance certificate when remitting more than R1 million per annum, for example where you sell the property before returning to SA.
To ensure hassle-free payment of periodic rental income abroad, the lease agreement must be registered with the Reserve Bank who will in such case provide a specific reference number allowing the foreign transfer of such funds.
STBB’s Non-Resident Department can assist in the process, including registering the lease agreement with the Reserve Bank and applying for tax clearance certificates.