The year-end deadline for your 2026 annual allowances is approaching. Your 2026 offshore allowances do not carry over. Any amount not transferred by 31 December 2026 is lost when the allowances reset on 1 January.
That matters more this year than in most. The 2026 Budget doubled the Single Discretionary Allowance, so each adult now has more room to move money abroad than at any point in the past 15 years. If you have been meaning to invest offshore, pay for a property abroad, support family overseas or build up a foreign currency buffer, the next seven weeks are your last chance to use this year’s limits.
Below we explain how the allowances work, what each one requires, and why it pays to start the process now rather than in mid-December.
How the Annual Allowances Work
The South African Reserve Bank (SARB) sets limits on how much money residents can move out of the country, and authorised dealers such as banks and specialist currency providers apply those limits on every transfer.
For private individuals, the limits are set per person and per calendar year. A new set of allowances opens on 1 January and closes on 31 December. There is no rollover: if you used R500,000 of your allowance this year, the unused balance does not add to next year’s limit. Each year starts from the same base.
The allowances apply to South African tax residents aged 18 or older. Each adult has their own limits, so a married couple has two sets of allowances, not one shared set. The two main allowances are the Single Discretionary Allowance and the Foreign Capital Allowance (also called the Foreign Investment Allowance).
Single Discretionary Allowance: up to R2 million
The Single Discretionary Allowance (SDA) lets each adult move up to R2 million out of South Africa per calendar year. The 2026 Budget doubled this limit from R1 million, and the SARB brought the new limit into effect in April 2026.
You do not need an Approval for International Transfer (AIT) from SARS to use the SDA. In most cases you only need to provide your ID, your banking details and the reason for the transfer. That makes it the quickest route offshore.
The SDA covers a wide range of purposes, including:
- Offshore investments, such as funding a foreign brokerage or savings account
- Gifts and donations to people or organisations abroad
- Support for family members living overseas, such as children studying abroad
- Travel spending, including foreign currency and card spend on trips
Keep in mind that all of these draw on the same R2 million. If you have already spent R150,000 abroad on holiday this year, that amount counts against your SDA. We can help you work out what is left before you transfer.
Foreign Capital Allowance: up to R10 million
The Foreign Capital Allowance (FCA) lets each adult move up to a further R10 million offshore per calendar year. It sits on top of the SDA and is mainly used for larger investments, such as buying property abroad, moving savings into a foreign portfolio or funding emigration plans.
To use the FCA you need an AIT from SARS before the money can leave. SARS uses the application to confirm that your tax affairs are in order and that the funds you are sending have been taxed. It will usually ask for:
- A statement of your assets and liabilities
- Proof of where the funds came from, such as a property sale, inheritance or savings
- Recent bank statements
- Details of where the money is going
Applications move fastest when your tax returns are up to date and your SARS profile has no open queries. An outstanding return, an unpaid balance or a mismatch on your profile can hold up approval until it is fixed. If you are unsure of your status, it is worth checking now so there is time to sort out any problems before year end.
Up to R12 million per adult this year
Together, the SDA and FCA allow each South African tax resident aged 18 or older to move up to R12 million offshore in 2026.
Single Discretionary Allowance (SDA): up to R2 million per adult per calendar year. This limit doubled from R1 million in the 2026 Budget. No AIT is needed.
Foreign Capital Allowance (FCA): up to R10 million per adult per calendar year. An AIT from SARS is needed.
Why you should not leave it to December
A transfer only counts against your 2026 allowances if the funds leave South Africa before 31 December. Signing a contract or submitting an application in December is not enough. The money has to be sent.
Several things make the last weeks of the year tight:
- SARS processing times for AIT applications tend to lengthen in December, as many taxpayers apply at the same time.
- Public holidays on 16, 25 and 26 December cut the number of working days left for SARS, banks and receiving institutions abroad to process your transfer.
- If SARS asks for more documents, each round of queries adds days you may not have.
There is also currency risk to think about. While you wait for approval, the rand can move against the currency you are buying. Starting early gives you time to choose when to convert, rather than accepting whatever rate is available on the last working day of the year. If you plan to use the FCA, we suggest starting your AIT application by the end of November.
We handle the paperwork
Currency Partners offers complimentary AIT applications as part of our currency transfer service. We can also help with special approvals from the SARB if your requirements go beyond the standard limits, and we will tell you what documents to gather from the start so the application is not held up.
To use your 2026 allowances before they reset, contact us on +27 21 203 0081 or email enquiries@currencypartners.co.za.
