SDA limit doubles to R2 million a year

On 25 February 2026, Finance Minister Enoch Godongwana announced that the Single Discretionary Allowance (SDA) would increase from R1 million to R2 million per adult resident per year. It is the largest adjustment to the SDA in nearly 15 years and reflects the impact of inflation and currency fluctuations.

The increase gives South Africans more flexibility for offshore transfers, international investments and financial planning.

Residents can now move up to R2 million abroad annually without needing a SARS AIT PIN, simplifying the process and reducing administrative hurdles.

SARB implementation process

Before the new SDA limit can be fully applied across the financial sector, the South African Reserve Bank (SARB) will follow a structured implementation process:

• Treasury issues a draft statement detailing the SDA increase.
• Drafts are circulated to all Authorised Dealers (ADs) for review and comment.
• ADs have until 17 March 2026 to submit feedback.
• SARB will then take into account all feedback and concerns raised. Upon agreement, a final circular will be released, which sets the official date the new R2 million limit can be applied.

The new SDA limit becomes effective on the date the final circular is received by ADs. Sable International's forex division will confirm when banks start processing transfers under the increased R2 million limit and help you plan your transfer accordingly.

Understanding the Single Discretionary Allowance

The SDA allows South African residents aged 18 and older to transfer funds offshore without requiring prior approval from SARS:

It can be applied to:

• Travel expenses
• Gifts and remittances
• Investments and offshore property
• Donations

For married couples, each spouse receives an individual R2 million allowance, allowing a household to transfer up to R4 million per year under the SDA.

Additionally, residents may also utilise the Foreign Investment Allowance (FIA) for larger transfers. Understanding your South African foreign investment allowance is key to this process. While the SDA provides R2 million per adult, the FIA allows up to R10 million per person, subject to SARS AUT approval, bringing the potential total offshore transfer capacity to R12 million per adult resident, per year.

The significance of the increase

The SDA was introduced at R500,000 in 2008, raised to R1 million in 2011, and stayed the same for nearly 15 years. Inflation and Rand depreciation had reduced its real value, limiting what residents could transfer offshore.

The new R2 million SDA allowance restores purchasing power and provides South Africans with greater flexibility for offshore transfers and investments:

• Previous allowance: R1 million, which converted to roughly USD 60,000 or GBP 45,000 at current exchange rates.
• New allowance: R2 million, converting to approximately USD 121,000 or GBP 90,000.
• Practical impact: The increased limit gives more capacity for tuition, living costs, or investment capital abroad.
• Note: Exact amounts will vary depending on exchange rates.

The SDA resets every 1 January, and any unused allowance does not carry over.

Strategic implications

With the allowance doubled, the Rand holding strong, and no new paperwork required, it’s the perfect time for South Africans to move money offshore.

With more than 22 years of experience in immigration and foreign exchange, we assist both private clients and companies in navigating cross-border transfers efficiently. Our expertise ensures that clients can:

• Maximise SDA usage and coordinate FIA applications where appropriate.
• Structure transfers in full compliance with SARB and SARS requirements.
• Access competitive foreign exchange rates to minimise transaction costs, even on larger transfers.

Next steps

The higher SDA gives South Africans more flexibility to move money abroad for investments, international education or relocation. Careful planning helps ensure your transfers remain compliant and cost-efficient.

Our team can confirm whether the new R2 million limit is already available through your bank and help you structure your offshore transfers efficiently.

Call today to speak with a dedicated broker so you can start building your future beyond borders. Contact our forex team on [email protected] or call +27 (0) 31 536 8844 or +27 (0) 657 2160.