Tax

South Africa has a double taxation agreement with most European countries (including the UK and Netherlands), the US and certain other nations. In most cases this prevents a citizen of one of these countries living in South Africa from being taxed in both countries. However, when relocating to South Africa, there are a number of relevant tax questions that should be considered and which require individual consultation. Pensions and retirement income are generally not taxed in South Africa. 

Taking up permanent residence in South Africa does not automatically lead to a local tax liability with regards to the foreigner’s worldwide income. Whether or not a foreigner becomes a tax resident and thereby liable to declare his/her worldwide income in South Africa can depend on one of two factors. Firstly, if the person’s life centres around South Africa, i.e. the person "returns to South Africa from his/her travels" ("ordinary residence"), this may lead to a tax residence status here. Alternatively, the number of days the person has sojourned in South Africa over a certain period of time (so-called "time-rule") will determine the tax residence status. None of these factors are directly connected to the immigration status. In certain cases, however, there may be a connection, and obtaining thorough professional advice in this regard is recommended. 

In General

In view of the importance of your existing and future financial investments on the local and overseas markets, you will be advised by consultants specialising solely within this area.

Contact us if you require assistance in this regard.