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Exchange control synopsis of RBZ directive RM80
MBCA Bank Limited
August 04, 2011

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Remittance of sale proceeds from disposal of immovable property.

Details

These transactions fall under the Capital Account which has not yet been liberalised. Remittances of sale proceeds from disposal of properties have been placed into 4 categories;
I. Permanent emigrants with Exchange control emigration status.
II. Deceased estates with beneficiaries residing outside Zimbabwe.
III. Individual foreign properties investors.
IV. Zimbabweans within and outside Zimbabwe.

What this means to you

You will require prior exchange control authority to dispose of your property if you wish to remit proceeds from such disposals offshore. The application, with agreements of sale and other related documents will be submitted to your Authorised Dealer (MBCA Bank) for onward transmission to RBZ Exchange Control.

100% remittance (after all statutory deductions) shall be eligible for the following categories :
i) Formal emigration;
ii) Deceased estates whose beneficiaries are resident outside Zimbabwe;
iii) Individual foreigners with documentary proof of transferring funds into Zimbabwe for the purchase of immovable property.

Policy Initiative / Intervention

Special Account: "FCA (Property)"

Details
Sale proceeds from immovable property will be managed through a Special Account which shall be designated "FCA (Property)" wherein all proceeds by both residents and non-residents shall be deposited initially before any remittances can be effected. This is to manage and monitor cross border remittances emanating from property sales.

What this means to you

We shall open the special FCAs for all individuals selling their immovable property whether to locals or foreigners. This account shall be opened in the name of the property owner or appointed agent as directed by the applicant.
Please note that this relates to individuals only as disposal of property by corporates with foreign ownership is treated as a disinvestment which requires Exchange Control approval as per the existing policy.

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