Selling your business and moving the money abroad

Can I really take the money out of South Africa?

Yes. South Africa does not stop you moving money abroad. It controls how much, how often and with what approvals. The controls are administered by the South African Reserve Bank and your bank (an “authorised dealer”), working with SARS, the tax authority. If you follow the process, money can be moved. If you skip it, funds can be frozen and penalties apply.

What are the limits for someone who is still a South African resident?

Residents have two yearly allowances, counted per calendar year:

• The single discretionary allowance, which can be used for almost any purpose, including gifts or support for family abroad. The 2026 Budget announced an increase from R1 million to R2 million a year; commentary says it applies for 2026 after formal implementation, so confirm with your bank what is in force on the day you transfer.
• The foreign investment allowance of R10 million a year for investing abroad. Above R2 million of transfers in a year, SARS must first approve the transfer through the “Approval for International Transfer” (AIT) process, which confirms that your tax affairs are in order. Amounts above R10 million a year need additional approval from the Reserve Bank, but are not prohibited.

A sale of a business can produce far more than these amounts in a single year. That is the practical problem: the proceeds land in your South African account, and getting them out can take more than one year, or an approved process.

What if I am emigrating?

Emigrating has its own steps. As commonly described by the banks, you notify SARS after you have left and moved your life abroad, SARS confirms your non-resident status, and your bank then changes your accounts. Moving capital out needs an AIT; amounts up to R10 million are handled through your bank, and amounts above that need Reserve Bank approval, which can take four to six weeks or longer. In the year you emigrate, the travel allowance is R2 million. Plan for the transfer to take months, and keep enough money offshore beforehand to live on while approvals are pending.

Merely leaving the country does not end your tax residency. If you have not completed the formal process, South Africa can still tax your worldwide income. A key test is whether you have ceased to be “ordinarily resident”, or, under the physical presence test, have been outside South Africa for a continuous period of at least 330 full days.

What is the “exit tax”?

When you cease to be a South African tax resident, section 9H of the Income Tax Act treats you as having sold certain worldwide assets at market value the day before you leave, and capital gains tax can apply to the gain. For an individual, the maximum effective rate is 18%. It covers, among other things, unlisted company shares, listed investments and foreign property. It does not cover immovable property in South Africa or interests in approved South African retirement funds. You must have the cash to pay it. A real risk is double taxation: because no sale happens, the foreign-tax credit generally cannot be claimed, so the same gain could be taxed again when you later sell abroad.

Does it matter whether I sell first or leave first?

A great deal. If you sell the business while you are still a resident, the gain is taxed in South Africa on the normal rules (see shares or assets and the small business exclusion, which has age and other conditions) and the cash is then moved under the exchange-control rules above. If you leave first, the exit tax can apply to the shares of the business you still own, and the money from a later sale is dealt with by the emigration rules and your new country’s tax rules. Neither is automatically better. The answer depends on your age, the size of the gain, the country you are moving to and how that country taxes you. Get cross-border tax advice before you sign a sale agreement, not after.

What about giving money to my children?

Gifts to children can have tax consequences in South Africa, such as donations tax, and in the country where they live. Exchange-control limits also apply to gifts sent abroad. A trust or an investment in your own name offshore is a different route with different rules. Because these choices are linked to your estate planning, involve your tax adviser and attorney together.

A sensible order of events

• 1. Find out what the business is worth and whether a sale makes sense. Start with what is my business worth?
• 2. Take cross-border tax advice on your own situation, in both countries, before you agree a price or a structure.
• 3. Get your SARS affairs in order so that AIT approval is quick when the time comes.
• 4. Decide the timetable for leaving and the order: sell then leave, or leave then sell.
• 5. Run a confidential sale process. See how to sell without anyone finding out.
• 6. Move the money in stages using the allowances and approvals, with your bank.

How Caban helps

We run the sale: finding the right buyer privately, getting a fair price and managing the process to closing, with the tax structure in mind. We are a registered tax practitioner and can work alongside your own tax adviser, but we are not licensed to give investment advice, and exchange-control and emigration planning should be handled by a specialist in cross-border tax. If you are thinking about it, send us a few lines or WhatsApp us. We will explain the options in plain language.

Sources. Investec, Ready to emigrate? Don’t forget the tax and exchange control aspects; PKF South Africa, Ceasing South African tax residency (2025); Tax Consulting South Africa on the 2026 Budget allowance changes. Allowances and approval processes are set by the Reserve Bank and SARS and change; confirm the current position with your bank and a cross-border tax specialist before you act.