Business
Married couples can now send R4 million offshore as Treasury doubles allowance
For many South African families, managing money across borders has long come with paperwork, waiting periods and plenty of frustration. Now, in a move that quietly slipped into the 2026 Budget, the rules have shifted in a way that could make life a lot simpler.
The National Treasury has doubled the single discretionary allowance from R1 million to R2 million per year. In practical terms, that means any South African resident can now send up to R2 million offshore annually through their bank without needing approval from the South African Reserve Bank or a tax clearance certificate from SARS.
For married couples, the real headline is this: together, they can transfer up to R4 million a year if each spouse uses their allowance.
What this actually means for families
The single discretionary allowance covers travel, gifts, remittances, offshore investments and donations. Crucially, it no longer requires a SARS pre-approval process for amounts within the R2 million threshold.
Anyone who has dealt with the alternative route, the Approval International Transfer tax clearance process, knows it can take weeks. Taxpayers must submit detailed documentation, prove compliance and often respond to additional queries. According to Michael Kransdorff, CEO of the Institute for International Tax and Finance, the administrative friction itself has discouraged legitimate offshore investment.
With the new limit, a compliant taxpayer can simply instruct their bank to process the transfer, up to R2 million in a calendar year, without engaging SARS at all. For a couple, that doubles to R4 million annually, handled cleanly through authorised dealers.
In a country where many middle and upper-income households are looking to diversify risk, whether for children studying abroad or simply for global investment exposure, that is a meaningful shift.
An overdue correction rather than a windfall
While some have described it as a big win, the context tells a more grounded story.
The allowance was originally set at R500,000 in 2008 and increased to R1 million in 2011. It then remained unchanged for almost 15 years. Over that time, inflation and currency depreciation significantly eroded its real value.
In real terms, the new R2 million limit largely restores the original purchasing power. It is less of a sudden bonus and more of a long-delayed update to reflect economic reality.
Offshore exposure has become part of mainstream financial planning in South Africa. It reduces concentration risk in a relatively small emerging market economy and gives access to global sectors that are underrepresented on the JSE, including technology, healthcare, infrastructure, international property and foreign currency bonds.
On social media, the reaction has largely been positive, particularly among financial advisers and expatriate communities. Many see it as a practical step towards modernising exchange control without dismantling it entirely.
The catch for those emigrating
There is, however, a complication.
South Africans who formally cease tax residency are generally limited to a once-off R1 million discretionary allowance in the year of emigration. That differs from the annual allowance available to residents.
This can create liquidity challenges for individuals who have exited the South African tax net but still face exchange control restrictions on remaining local assets. The question now being raised by tax specialists is whether non-residents will see a corresponding adjustment to match the new R2 million resident threshold.
Without that alignment, critics argue, the framework risks becoming uneven.
Treasury clamps down on spousal tax schemes
Alongside the increase, the National Treasury is also tightening the rules around certain cross-border arrangements between spouses.
The government has flagged tax avoidance structures where one spouse deliberately ceases tax residency before the other. Significant assets are transferred to the non-resident spouse, using the donations tax exemption that applies between spouses. The remaining spouse then ceases residency, potentially reducing income tax liabilities linked to the exit.
Treasury says these arrangements undermine the policy intent of the donations tax and exit tax provisions. As a result, it has proposed that donations tax exemptions will only apply where the receiving spouse is a South African resident. This change is set to take effect from 25 February 2026.
In other words, while couples have gained more flexibility for legitimate offshore transfers, aggressive tax planning between spouses is squarely in the spotlight.
A balancing act for policymakers
For everyday South African couples still living and working locally, the change offers breathing room and flexibility. It simplifies international investing and removes a layer of red tape that has long frustrated compliant taxpayers.
At the same time, Treasury is signalling that while it is willing to modernise exchange controls, it will not tolerate schemes designed to exploit loopholes.
In a year where many households are rethinking how and where they invest, the doubled offshore allowance may quietly become one of the most practical financial changes of 2026.
Follow Joburg ETC on Facebook, Twitter, TikT
For more News in Johannesburg, visit joburgetc.com
Source: Business Tech
Featured Image: Moneyweb
