Who wouldn’t want to spend their glory years in sunny South Africa? Think endless beaches, world-renowned vineyards, and a friendly, welcoming community. Pensioners find the living costs in SA affordable and the range of sporting hobbies and attractions endless. You would not be along with many foreigners choosing to spend their golden years in the southern tip of Africa.
Data from the Department of Work and Pensions show there are in the region of 40,000 Brits living in South Africa and drawing a UK state pension. The most popular cities for expats moving to South Africa are Cape Town and Johannesburg. – EverythingOverseas
If you are considering retiring in South Africa, there are a few things to consider:
The Application Process
Although living in South Africa can be ideal, you first have to get through the tedious admin work required for a retirement visa application process to get started. There are two options available for those looking to retire in SA.
- A retired permit: The individual can apply for a temporary or permanent residency permit
- An Independent Financial Persons Permit: In this case, it’s only applicable on a permanent residency basis.
So what are the criteria for being able to qualify?
There is no maximum or minimum age requirement for those wishing to retire in South Africa. The main criteria mostly focus on whether the individual will be able to support themselves financially.
For the retired visa application, the applicant must demonstrate that they have a monthly income of R37 000 or annual income of R444 000 for the period of four years in which the temporary residency permit is valid. In the case of the permanent residency permit, the applicant must also guarantee a monthly income of R37 000 and visit South Africa at least once every three years to prevent the permit from expiring.
Lastly, the financially independent permit applicant must have a net worth of R12 million. Apart from that, they must also pay a once-off fee of R120 000 and also visit SA at least once every three years.
What About the Tax Implications?
South Africa is known to be retiree tax-friendly, but that doesn’t mean the applicant can fly under the radar like previous years. The type of permit you hold isn’t the only factor that influences your tax contributions. South Africa’s tax system is residency based, so it will consider whether you are living in SA permanently or how many days you spend in the country. Keep in mind that all homeowners must be tax registered due to recent changes in the tax law. The good news is that you won’t be taxed on foreign sourced pension schemes, there are a low capital gains tax rate and a number of double taxation agreements in place.
When you are applying for your permit, remember to have the following documents on hand:
- Either the permanent or temporary residency application form
- Valid passport
- Medical and radiological reports
- Police clearance certificate (s)
- Yellow fever certificate (where applicable)
If you want more information or need assistance with the application process, we’d be happy to assist. Le Roux Attorneys Inc offers a variety of permanent and temporary residency services as well as assessments.
Speak to a professional now
Contact Le Roux Attorneys, South African Visa specialists about your visa application. Start by selecting one of the enquiry options below