Migrating your money offshore? Let’s have a closer look at your options and the costs involved
What Reserve Bank costs are involved in moving money out of South Africa?
An increasing number of South Africans are moving their hard-earned money out of the country due to the current economic climate. Banks and brokers are offering their services to make the process smoother – some at an additional cost.
Moving money offshore can be done in one of two ways, through the bank or through a trusted broker.
Banks offer an equally smooth process to that of brokers however, their services may include hidden costs.
One can understand that there are fees involved with investing internationally and transferring your money out of the country. The banks involved (intermediary and receiving) will have charges in place for this process - ensure to always ask about these charges. Costs like commission, bank charges, conversion charges and swift fees are all common in the world of banking. An extra cost to watch out for is that of any additional bank fee that occurs when your money is being transferred.
Costs and charges will be communicated by brokers upfront during the international money transfer process. It is in the best interest of our clients that you are informed of any costs that may be involved, we will walk you through each step and guide you accordingly. It should be known that both banks involved (receiving and intermediary) will have a fee too, and that cost is completely dependent on who you bank with. Regarding the communication of charges, commission fees apply to brokers however, a competitive rate is guaranteed with TransferMe.
When internationally transferring money, there are regulations that need to be followed and are put in place by the South African Reserve Bank (SARB). The SARB provides an allowance of R1 million as a Discretionary Allowance and up to R10 million with a tax clearance for offshore investments per year. All documents and taxes need to be up-to-date and correct before going ahead.
The necessary steps and documents needed to move your money offshore are as follows:
- Register for an account
. - Having FICA documents in order and submitting accordingly
. - Sign off and complete all documents and send off to your broker.
This process can take up to a year to transfer all money to an offshore account. It is pertinent to take the right steps and to do so cautiously.
TransferMe can offer and guarantee you a high standard of personal service, excellent rates on your transfers, free registration, a highly experienced team to assist you through the process, expert advice and of course, safety and security on your money transfers.
Contact us today: support@transferme.co.za