SARB exchange control and remitting rand
South African residents may invest up to R 10 million per adult per calendar year abroad under the single discretionary allowance, which covers buying property overseas, without prior SARB approval. For larger transfers above R 10 million, a Tax Clearance Certificate and SARB approval are required. Your authorised dealer bank converts rand to AED and wires directly to the developer's escrow account against the proforma invoice and allotment letter, recording the transfer against your foreign investment allowance.
- Transfers up to R 10 million per adult need no SARB approval, just your bank's standard FICA checks.
- A couple can combine allowances to R 20 million in one year for a single purchase.
- Above R 10 million, obtain a Tax Clearance Certificate and apply to the SARB.
Tax on Dubai rental for South African residents
The UAE levies no income tax on rental income. As a South African tax resident, your Dubai rental is taxable in South Africa as foreign-sourced income and is added to your taxable income at your marginal rate. The UAE-South Africa tax treaty exists, but because the UAE rate is zero no relief flows through in practice. You must declare the rental on your annual SARS return, and capital gains on sale are subject to South African capital gains tax.
- Declare foreign rental and the Dubai property on your SARS return.
- Capital gains on sale are taxable in South Africa; the UAE levies no capital gains tax.
The 10-year Golden Visa in rand
An investment of AED 2 million, approximately R 10.2 million at current rates, qualifies you, your spouse and children for a 10-year renewable UAE Golden Visa. Several DAMAC apartments in Dubai Harbour, Downtown and Dubai Harbour start near this level. The visa requires no minimum stay to renew and does not, on its own, change your South African tax residency.
Remote purchase and the Power of Attorney
South African buyers can complete a Dubai purchase largely remotely. A Notarised and Apostilled Power of Attorney, arranged through a South African notary and DIRCO authentication, lets a representative in Dubai sign the SPA, register the title and handle handover. We coordinate the POA drafting, the escrow transfer and the Oqood (off-plan) or Title Deed registration so only a short visit is needed for key collection.