Remittance of Funds - Page Properties
In Zimbabwe, it seems that our Exchange Control laws change constantly. When we first dollarized in 2009, money was allowed to flow in and out of the country with very few restrictions. This has changed recently, and the most common concern is the legalities of remitting funds to other countries. Hopefully, the following information will answer this question for you.
There are several scenarios which the Reserve Bank deems acceptable to send money out of the country. These are:
- Proof that the funds used to originally buy the house were from offshore. In this case, you are disinvesting and remitting the funds back to the original source.
- Individuals who are formally emigrating.
- If you are a beneficiary of a deceased estate and you live in another country.
In other cases, special application can be made and sent to the Reserve Bank of Zimbabwe for consideration.
If you fall into the second and third category above, you may remit the funds to any foreign bank. BUT, there is a process and a lot of paperwork that needs to be completed. You will need:
- A copy of the Agreement of Sale;
- Capital Gains Tax Clearance Certificate
- Completion of Emigration Form A
- Identity document
- Proof of Residential Status in the foreign country
- A covering letter with your physical address and bank details for the payment of the funds.
If you are a beneficiary of a deceased estate, you will also require a copy of the Last Will and Testament, and Final Liquation and Distribution accounts for the estate.
I have also advised my clients to provide a utility bill in their name proving that they are in fact residing outside the country.
Once you have gathered all the documents and passed them over to a commercial bank, they will be submitted by the bank to Reserve Bank of Zimbabwe. Approval takes 3 to 4 working days.
If you own your property in a company name, you cannot remit the funds once the property is sold, unless you sell the shares in the company and pay all the relevant taxes. The money can only be sent out the country if it is an individual selling their home and they meet the above criteria.