South Africa has a progressive visa system that makes it easy for non-citizens to visit the country for work or leisure. A reliable, convenient bank account is essential if you’re a foreign national living and working in SA. Nedbank understands the unique needs of expatriates and can offer you a range of banking solutions. Read on for everything you need to know about managing your finances seamlessly while living here.

Can a non-South African citizen legally have a South African bank account?

Yes. Typically, South African banks offer different types of accounts, including accounts for individuals with valid work or study permits or permanent residency. However, specific requirements and terms may vary from bank to bank and may change over time. Each type of account comes with its own set of requirements and benefits, so consult your bank to determine the best fit for your situation. You can apply for a Nedbank account in 3 easy steps.

Laws that apply

• Exchange control regulations: These rules regulate the movement of money in and out of SA and the Common Monetary Area. It also defines who is a resident and who is a non-resident when it comes to exchange control.
• The Financial Intelligence Centre Act (FICA): This law requires banks and other financial institutions to verify the legal identities and addresses of their clients, and to report any suspicious activity. It is in place to combat money laundering and terrorist financing.
• The Income Tax Act: This regulates the taxation of income and capital gains in SA. It also determines the tax residency status of individuals and entities based on their physical presence or place of effective management in South Africa.

Non-resident banking

Nedbank offers competitive transmission and investment options for foreign permanent residents, including foreign students and embassy staff. These accounts offer flexibility with features such as:

• Convenience at your fingertips
  Nedbank clients can deposit and withdraw money at any ATM in SA, making banking easy and accessible.
  
  
• Personalised service
  If you prefer in-person interactions, our branches are ready to help.
  
  
• Modern banking tools
  Enjoy the convenience of using our cards, Online Banking, the Money app, and Cellphone Banking*120*001#.
  
  
• Currency flexibility
  For those dealing with multiple currencies, our multicurrency accounts denominated in US dollars provide stability by protecting you from exchange rate fluctuations.

Credit and debit cards

Nedbank credit and debit cards provide a safer, more cost-effective alternative to cash. They offer immediate access and full control over your funds. All credit applications are considered individually. We consider the specific terms and conditions, conduct a credit risk assessment, and evaluate income sources, to ensure a personalised approach to your financial needs.

Investing in South Africa for non-residents

South Africans living abroad or non-residents working in SA can also enjoy the same private banking experience as local clients.

If you’re an international client seeking to invest or do business in SA, you can open a Non-resident and Embassy Banking Account. This account offers world-class banking and investment solutions, top-of-the-range exchange control services, a dedicated banker, and a 24/7 helpdesk.

You can invest in up to 8 international currencies – US, Canadian, Australian or Hong Kong dollars, pounds sterling, euros, Japanese yen, and Swiss francs – with our Foreign Currency Account (FCA). This allows you to hedge against currency fluctuations, diversify your portfolio, and access global markets.

The FCA is available to South African citizens, foreign nationals with a valid work permit and the necessary documents, and non-residents with a passport and the relevant documents. You also need to have a Nedbank current or savings account.

Financing investment opportunities for non-residents

Apart from traditional investments, there is the option to invest in assets. Since having a lump sum amount readily available is rarely an option, financing an asset such as a property is a great way to grow your asset portfolio.

As a non-resident, you have the same property purchase rights as citizens but will still need visas to visit or work in SA. If you rent out the property, you will be subject to tax on the income and capital gains tax upon sale.
 

Home loan financing for non-residents

• Foreign nationals
  Non-citizens living in South Africa can get loans up to 75% of the property's value.
  
  
• Bona fide non-residents
  Non-citizens not living in South Africa can get loans of up to 50%.

Note: In terms of affordability assessments, Nedbank uses a 1:1 ratio, requiring deposits or assets equal to the loan amount in your South African bank account. Loans are offered up to 30 years, linked to the prime rate.

For more information on how Nedbank can provide personalised financial services for your foreign-owned business, including exchange control services, a dedicated banker and 24/7 support, please contact our team.