International Buyers

FOREIGN EXCHANGE GUIDELINES

Immigrants

Formal immigration documents must be completed in South Africa at a Commercial Bank for the first time immigrants to South Africa to place them on record at the Reserve Bank. The immigrants must be able to produce their residence permits.

Without notifying the Reserve Bank an immigrant may retransfer abroad any funds introduced to South Africa during the five year period. Interest, profits or rentals earned in South Africa must remain in the country.

A non-resident wanting to apply for a bond should include the following clause in the Offer to Purchase: "subject to Reserve Bank approval for granting of a mortgage in the amount of R______."

Former residents

If the buyer is a former resident of South Africa who has been absent from the country for more than ten years, the Reserve Bank will in terms of their present policy, grant the right to retain foreign asset.

Contract workers/consulate officials

Contract workers and diplomats are favorably considered by the Reserve Bank should they wish to apply for a bond in South Africa. The following clauses will then apply:

	The bond must be reduced to 1/3 of the original purchase price of the property when the person leaves the country
	A copy of the contract or a letter of appointment must be produced when applying for the bond
	The funds will be regarded at transferable upon sale of the property

Non-residents of South Africa

Non-residents are people who have never been a permanent resident of South Africa or former residents who have emigrated. The following conditions will then apply:

	The may apply for 1/3 of purchase price for a bond, and the Blanca must be introduced from abroad
	Upon sale of the property the proceeds are transferable
	An immigrant from South Africa may apply to use their reaming funds; i.e. blocked funds to purchase the property. The Title Deed in this case is kept at the Bank. When or if the property is sold the funds must be transferred back to the blocked fund.

Exchange control regulations

Special permission must be granted from the Control if a South African resident wants to invest in foreign property. It's the residential status of the party wishing to purchase property and not citizenship that will affect the situation.If a South African has left the country to live abroad and has not "officially" emigrated but would like to buy property here, they must contact a bank or financial institution to complete necessary documents so that they can be reclassified.

Permission from the Reserve Bank must be granted for a non-resident to purchase property in South Africa - 1/3 of the purchase price or maximum half their assets. The SA Exchange Control Authorities takes approximately 3 - 4 weeks to approve a bond application, to accelerate the process a telex can be sent which will then take 2 - 5 days for the application to be approved. The same conditions as stated above will also apply to Close Corporations or a Company and individuals. A "Non-Resident" must be endorsed on share certificates and title deeds. Non-residents can bring money into South Africa for the sole purpose of purchasing property namely:

	The money can be transferred into a trust fund, or
	The money can be transferred into a non-resident account at a bank

The latter of the two is preferable as it is possible to prove that the money was transferred from abroad.

A rental agreement and a confirmation from the Estate Agent confirming that the rentals is market related is needed if a non-resident wants to transfer his income from rentals. These documents should also be endorsed "non-resident". If after 5 years of residence in South Africa the parties wish to immigrate they will be able to take the following cash with them:

	R 100 000 - for a single adult
	R 200 000 - for a family unit
	R 25 000 - for each person over the age of 12 years, and
	R 12 500 - for children under the age of 12 years