South Africa
South Africa taxes residents on worldwide income. From 2024, the foreign employment income exemption is capped at R1.25M. Exchange controls restrict capital outflow.
Tax situation for South Africans
- - Worldwide taxation for residents; R1.25M foreign employment income exemption
- - Tax residency determined by 'ordinarily resident' test and physical presence test
- - Exchange controls: individuals can remit up to R11M per year with tax clearance
- - No capital gains tax on the first R2M of primary residence gain
- - Tax treaties with 80+ countries
Exit tax & departure rules
South Africa has a deemed disposal exit tax — when you cease tax residency, all worldwide assets are deemed disposed of at market value. Capital gains tax applies (max effective rate ~18%). Retirement fund interests are excluded. Tax clearance certificate required from SARS before emigrating.
Free citizenship by ancestry
South Africans may qualify for citizenship in these countries through ancestry — often free or near-free:
Top destinations for South Africans
United Kingdom
Ancestry Visa (many qualify via grandparent), familiar legal/business culture
Portugal
Golden Visa, D7, affordable EU lifestyle, large SA community in Lisbon
United Arab Emirates
0% income tax, safety, career opportunities
Australia
Skilled worker visas, quality of life, large SA diaspora
Mauritius
Occupation Permit, Premium Visa, proximity, low tax, English-speaking
Malta
EU, English-speaking, Nomad Residence Permit
Tax situation for South Africans
The R1.25M foreign employment income exemption means many SA expats working abroad still owe SARS tax on earnings above that cap. Financial emigration (now called 'ceasing tax residency') requires SARS tax clearance and triggers deemed disposal.
Best countries to move to from South Africa
South Africans emigrating ('semigrating') are typically driven by safety concerns, load-shedding, and seeking better opportunities for children. The UK (via Ancestry Visa), Australia, and Portugal are the top destinations.
Second passport options for South Africans
SA passport is relatively weak (~54th). Second passport demand is very high — UK Ancestry Visa, EU descent routes, and Caribbean CBI are all popular. Mauritius is increasingly used as a base for Premium Visa holders.
Remote work & digital nomad visas for South Africans
South Africans working remotely from abroad face the R1.25M exemption cap. Popular nomad setups: Portugal, Mauritius (Premium Visa), or UAE where no local tax applies and the SA exemption covers the first R1.25M.
Retiring abroad from South Africa
SA pension/provident fund lump sums are taxed on withdrawal. Retiring abroad requires financial emigration from SARS. Popular retirement spots: Portugal, Mauritius, Thailand — all cheaper than SA's major cities with better infrastructure.
Renouncing South African citizenship
SA's dual citizenship rules are strict — acquiring foreign citizenship without prior approval means automatic loss of SA citizenship. Many South Africans apply for retention of citizenship before acquiring a second passport.
Renunciation note: South Africa does not allow dual citizenship for adults who voluntarily acquire foreign citizenship (unless exemption obtained). This means acquiring a new citizenship automatically triggers loss of SA citizenship unless prior permission from Home Affairs is obtained.