By Suzean Haumann*
In February, the finance minister doubled the single discretionary allowance (SDA) from R1 million to R2 million a year. This is the biggest change to exchange controls in 15 years, yet the true opportunity this presents isn’t clear to everyone.
This is especially true for South Africans thinking: “Great, but I don’t have R2 million lying around”.
The way to think about this is not as a target, but a ceiling. What the increase actually signals is that it’s much easier to now move money offshore than ever before. And that’s true whether you move R2 million this year or R200,000.
How the SDA works
Every South African taxpayer over 18 can now move R2 million a year offshore without needing a SARS tax clearance PIN.
These funds can be used for offshore investments, travel, gifts to family abroad, or almost anything else.
This is a conversation that I’ve had with many clients who’ve been investing offshore for years and use their allowance without a second thought.
The more interesting conversation, though, is with the client who hasn’t moved a rand abroad yet. Not because they don’t understand the case for it, but because it can feel like a really big step.
This fear of the unknown is that much harder to stomach if your investment drops by $1,000, not R1,000.
Your offshore investment options
The reality is that moving money abroad and investing offshore doesn’t have to be any riskier for the average investor.
For a start, the simplest way to get offshore exposure is to not even go offshore at all. Not directly, anyway.
There are many funds in which you can pay rands to invest in global markets and international shares. The benefit is that you still get real exposure to international companies and currencies, but all the administration stays local.
Investing directly into offshore markets is the natural next step once you’re ready to externalise money yourself. Your options include offshore unit trusts, global equity funds, ETFs and endowments, held in foreign currency on an international platform.
This is typically how you can use of your SDA to benefit from the growth of offshore investments.
Practical considerations
Of course, one of the most useful tools that simplify this process is an offshore bank account. This is the account your money actually moves through, and if you travel regularly or have family studying or working abroad, that will simplify life enormously.
A word on tax and estate planning, because it matters more than people expect. South African tax residents are taxed on worldwide income, so interest, dividends and capital gains earned offshore generally still need to be declared here.
This doesn’t always mean you’ll pay tax in two jurisdictions – especially in countries that have double taxation or foreign tax credit agreements with South Africa.
It’s important to know that if you earn income working abroad, only the first R1.25 million is exempt under current rules, as long as you meet the day-count requirements. Also, offshore assets might be subject to inheritance rules and estate duties, so it’s worth getting proper advice before, not after, you move money abroad.
One more thing worth saying plainly, since the rand had a strong run in 2025: don’t build your offshore decision around what the currency might do next. A weaker rand flatters offshore returns when converted back, while a stronger one dents them.
The truth is that it’s practically impossible to predict what the currency is going to do, and that offshore investing is a long-term diversification decision, not a currency trade.
So, the real question isn’t whether you can afford to move R2 million. It’s what amount, if it dropped in value tomorrow, genuinely wouldn’t keep you up at night. Start there. Build your comfort with the currency and the process and decide whether to use more of your allowance next year once you have.
My message to you is this: the door didn’t get harder to walk through, it got wider. You don’t need to fill the frame to walk through it.
* Suzean Haumann, CFP®, is head of Brenthurst Wealth Tyger Valley.
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
