Tax Considerations
Tax considerations are a paramount concern when contemplating retirement in South Africa from abroad. South Africa employs a residence-based tax system, which means that your tax obligations are determined by your residency status.
When relocating to South Africa, determining whether you want to become a tax resident of South Africa should be at the forefront of any financial decision. Tax residency is determined by way of physical presence in country and your primary domicile. Tax residency is avoidable for a period of time, which is why evaluating your tax options is the very first step in the process. This will determine which Visa application will be best suited to you.
Our objective is to ensure you are fully tax compliant and duly informed of the options available to you.
South Africa taxes worldwide income for residents, this includes pensions, annuities, and investment income. However, various tax treaties, referred to as Double Taxation Agreements (DTA), that exist to prevent double taxation for retirees who receive income from their home countries. A full tax diagnostic will take place will assess your tax compliance, and whether you qualify for tax relief through DTA. Additionally, understanding the tax implications of withdrawing retirement funds or pensions from foreign accounts and seeking advice from a tax professional can help you navigate the intricacies of South African tax laws and optimize your financial situation.