Living in South Africa
A general guide to life in South Africa and the financial considerations that may be relevant for UK nationals and internationally mobile families living there.
A country that offers a very different pace of life
From Cape Town's coastline and Winelands to the country's wildlife, outdoor lifestyle and diverse communities, South Africa can offer a distinctive setting for people building a life abroad.
For UK nationals, the move can also mean maintaining connections with two financial systems. UK pensions, investments, property or other assets may remain in Britain while everyday life, income and expenditure become centred in South Africa.
Understanding how residence, tax, pensions, property and reporting fit around that international lifestyle can provide useful context when planning a move or reviewing an established life overseas.
This guide provides general educational information rather than South African tax, legal, investment or financial advice. Current South African tax information can be checked directly with SARS.
Understanding your connection with South Africa
Tax residence is an important starting point when understanding how South African tax rules may apply to income and assets.
Tax Residence
South African tax residence can arise under the ordinary residence test or, in some circumstances, through physical presence.
Worldwide Income
South African tax residents are generally within a residence-based system that can bring worldwide income into consideration, subject to exclusions and exemptions.
Non-Residents
People who are not South African tax resident can still have South African tax obligations in relation to income from South African sources.
Double Taxation
International tax agreements can become relevant where the same person or income has connections with both South Africa and another country.
Residence can affect the way income is viewed
South Africa operates a residence-based system of taxation, but residence is not determined simply by nationality or by holding a South African visa.
SARS uses tests including ordinary residence and physical presence when determining whether an individual is resident for South African tax purposes.
Where an individual has connections with another country, an applicable double-taxation agreement can also become relevant to the residence position.
View Current SARS Residence Guidance →Your circumstances may involve
- South African tax residence
- UK or other-country tax residence
- Employment or business income
- UK and overseas pensions
- Property in more than one country
- Investment and interest income
- International reporting obligations
- Applicable double-taxation agreements
Areas that can become relevant when living in South Africa
International lives can involve income, assets and obligations across several jurisdictions. The relevance of each area depends on individual circumstances.
Income Tax
Residence and the source of income can influence whether employment, business or other income falls within the South African tax system.
Homes & Rental Property
Owning property in South Africa or retaining property overseas can create income, capital gains and estate considerations.
UK Retirement Benefits
UK pensions can remain in place after moving overseas, but tax, currency and the type of pension can become relevant to the wider retirement picture.
Income & Capital Gains
Investment income and gains may be treated differently depending on residence, the location of assets and the nature of the investment.
Estate & Succession
Estate duty, wills, beneficiaries and assets located in different countries can all form part of the international estate picture.
Healthcare & Protection
Healthcare arrangements, medical cover and long-term protection can form part of the practical financial considerations around life in South Africa.
South Africa can mean many different things to different people
For some, it is Cape Town's coast and mountains. For others, it may be family connections, the Winelands, a quieter coastal town or the space and outdoor lifestyle available in other parts of the country.
An international move is about much more than tax or pensions. Understanding the financial considerations simply helps place the practical side of life abroad into a clearer context.
Explore Country Guides
Financial connections do not always move when you do
Someone living permanently in South Africa may still have much of their financial history in the UK.
Pensions may remain with UK providers, property may still be owned in Britain and investments or bank accounts may be denominated in sterling.
These connections can make it useful to understand how the two countries interact rather than looking at either financial system in isolation.
Income
Consider where different sources of income arise and how residence may affect their treatment.
Property
Property in the UK and South Africa can create separate tax, reporting and estate considerations.
Currency
Income or assets in sterling can have a different value in rand as exchange rates change.
Estate Planning
Assets and family members in different countries can make wills, succession and estate rules particularly important to understand.
What happens to a UK pension when living in South Africa?
Moving to South Africa does not automatically mean a UK pension needs to be transferred or replaced.
The pension can remain a UK arrangement, while residence in South Africa changes the wider context around retirement income, taxation, currency and future planning.
South African domestic tax law contains specific provisions relating to certain pensions arising from past employment outside South Africa. The UK and South Africa also have a double-taxation agreement, so the precise position can depend on the type and source of the pension and the individual's circumstances.
Keep the UK Pension
Living in South Africa does not by itself require an existing UK pension to leave the UK.
Understand the Benefits
Existing guarantees, charges, investment arrangements and retirement options remain important features to understand.
Consider the Tax Context
Pension tax treatment can depend on the pension, residence, domestic tax law and applicable treaty provisions.
Areas to understand when living in South Africa
Not every point will apply to everyone, but these areas can provide a useful framework for further research.
Understand your tax residence
Check how the South African residence rules apply to your circumstances using current SARS guidance.
Map your income
Identify employment, pension, investment, property and other income arising in South Africa and overseas.
Understand your UK pensions
Establish the pension types, benefits, guarantees, investments and retirement options you already hold.
Consider cross-border tax
Understand whether the UK–South Africa double-taxation agreement may be relevant to particular income.
Review property connections
Property retained in the UK or owned in South Africa can continue to have tax and estate implications.
Check reporting requirements
Use SARS and other relevant tax authorities for current filing, reporting and administrative requirements.
Consider estate arrangements
Wills, beneficiaries and assets in more than one country can create cross-border succession considerations.
Keep information current
Tax legislation and administrative requirements change, so use current official information rather than historic rates or rules.
Useful SJB Global Guides
Explore related educational resources covering UK pensions, international tax considerations and life abroad.
What Type of Pension Do I Have?
Understand the differences between defined benefit, defined contribution and other UK pension arrangements.
Explore Pension Types →Tax on UK Pensions Abroad
Learn how residence, pension type and double-taxation agreements can influence the tax context around UK pension income overseas.
Read the Pension Tax Guide →UK State Pension Abroad
Explore how the UK State Pension works for people who live or retire outside the United Kingdom.
Explore the State Pension →Useful South Africa & UK resources
Official sources are particularly important for current tax rates, residence rules, filing requirements and other information that can change over time.
South African Revenue Service
SARS provides current information on South African taxation, residence, tax returns, non-residents and other tax matters.
Visit SARS →Living in South Africa
GOV.UK provides practical information for British nationals living in South Africa, including residency, healthcare and other administrative matters.
View GOV.UK Guide →UK–South Africa Tax Treaty
The UK Government publishes the current double-taxation convention and related documents between the United Kingdom and South Africa.
View the Tax Treaty →Important: This South Africa guide is provided for general information and educational purposes. It does not constitute South African financial, investment, tax or legal advice. Tax and pension rules can change and their application depends on individual circumstances. Current South African tax information can be checked directly with SARS, and specialist matters may be discussed with appropriately qualified professionals in the relevant jurisdiction.
Living in South Africa FAQs
How does South African tax residence work?
South African tax residence can arise through the ordinary residence test or, in some circumstances, the physical presence test. International tax treaty provisions can also be relevant where an individual has connections with another country.
Does South Africa tax worldwide income?
South Africa operates a residence-based tax system. Residents are generally taxed on worldwide income, subject to applicable exemptions and exclusions. Non-residents are generally taxed on income from South African sources.
Is there a double-taxation agreement between South Africa and the UK?
Yes. The UK and South Africa have a double-taxation convention covering various forms of income and gains. The relevant treaty article depends on the type of income involved.
Can I keep my UK pension if I live in South Africa?
Moving to South Africa does not automatically require an existing UK pension to be transferred. The rules and options available depend on the pension arrangement and provider.
Are UK pensions taxed in South Africa?
South African domestic law contains specific provisions relating to qualifying pensions arising from past employment outside South Africa. The source and nature of the pension, residence and applicable treaty provisions can all be relevant, so current SARS guidance is important.
Where can I find current South African tax rates and thresholds?
Current tax rates, thresholds, filing requirements and other administrative information are published by the South African Revenue Service. Using SARS directly avoids relying on historic figures that may no longer apply.
Does owning UK property matter after moving to South Africa?
It can. UK property can continue to create UK tax and reporting considerations, while a South African tax resident may also need to understand how overseas property income or gains are treated under South African rules.
Does SJB Global provide South African tax advice?
This page is an educational resource and does not provide South African tax or legal advice. Current South African tax information can be obtained from SARS, while specialist questions may require an appropriately qualified professional in the relevant jurisdiction.
Explore more about living and planning across borders
International living can connect pensions, tax, property, investments and family arrangements across several countries. Continue exploring the educational resources in the SJB Global Knowledge Centre and Country Guides.