If you are interested in investing overseas, it is important to understand the regulations that govern your financial transactions.<\/p>\n
Two of the most important concepts to understand are your SDA and FIA \u2013 both of which affect how much money you can invest overseas, as well as how you can invest it.<\/p>\n
If you do not follow these guidelines, it could cost you a lot of money.<\/p>\n
An SDA is the limit set by the South African Reserve Bank on overseas payments and investments.<\/p>\n
It allows South African residents to make up to R1 million worth of overseas payments and investments per calendar year.<\/p>\n
Any payments or investments that exceed this value will require supporting documents, and failure to abide by this could result in a significant fine.<\/p>\n
Your SDA allowance is available to use for offshore transfers\/payments as you please<\/p>\n
The following are accounted for by the SDA rules:<\/p>\n
However, there are additional regulations within each of these areas that must be followed, so it is important that you go through the necessary processes.<\/p>\n
If you wish to transfer or invest money over and above your SDA, you will need to use your FIA.<\/p>\n
This allows you to transfer up to R10 million extra abroad during a calendar year.<\/p>\n
To make use of this allowance, you must comply with the following requirements:<\/p>\n
This combined R11 million allowance to invest overseas can be incredibly lucrative, and leading South African cryptocurrency platform OVEX offers great returns on overseas investments in cryptocurrency.<\/p>\n
It prides itself on offering low fees \u2013 a maximum of 1% – tight spreads and fast settlement, and offers products such as interest accounts, cryptocurrency arbitrage, and over-the-counter trading.<\/p>\n