Cost of Living in South Africa
Most expats will find South Africa to have a low cost of living while providing for a high standard of living. In fact, Johannesburg was recently ranked the cheapest popular expat destination in the world, and even Cape Town’s indulgent local lifestyle hasn’t put it off the charts pricewise.
Foreigners can expect particularly good value for money when it comes to rented accommodation, eating out and domestic staff. Imported goods, especially cars, tend to be more costly, while alcohol is relatively inexpensive and groceries are on a par with the UK or US. The cost of living is decidedly more expensive in the two larger cosmopolitan centres, Johannesburg and Cape Town, relative to smaller regional hubs.
Expat residents in South Africa are taxed on their worldwide income, irrespective of where this income derives from; there are however international agreements in place to avoid double taxation. Income tax is calculated on a progressive scale from 18% for under R132 000 per annum to R152 960 plus 40% of the amount above R525 000 for all income over R525 001 per annum.
The property boom has seen houses prices double over the past few years meaning that property is no longer particularly good value for those wanting to buy. However, this does mean that rented accommodation is quite affordable for expats. In Cape Town’s aesthetic playground especially, housing with spectacular mountain views or seascape proximity can be remarkably affordable when compared with international cities of similar standard.
For an idea of costs, dinner for two at a good restaurant with wine will cost anything upwards of R500. Twenty cigarettes cost about R25, a Coke costs about R10 at a bar and a bottle of beer will be around R15. DSTV (satellite) costs about R500 per month.
Expats should aim for an income upward of ZAR 20,000 per month in order to maintain a comfortable independent lifestyle.
Foreigners can expect particularly good value for money when it comes to rented accommodation, eating out and domestic staff. Imported goods, especially cars, tend to be more costly, while alcohol is relatively inexpensive and groceries are on a par with the UK or US. The cost of living is decidedly more expensive in the two larger cosmopolitan centres, Johannesburg and Cape Town, relative to smaller regional hubs.
Expat residents in South Africa are taxed on their worldwide income, irrespective of where this income derives from; there are however international agreements in place to avoid double taxation. Income tax is calculated on a progressive scale from 18% for under R132 000 per annum to R152 960 plus 40% of the amount above R525 000 for all income over R525 001 per annum.
The property boom has seen houses prices double over the past few years meaning that property is no longer particularly good value for those wanting to buy. However, this does mean that rented accommodation is quite affordable for expats. In Cape Town’s aesthetic playground especially, housing with spectacular mountain views or seascape proximity can be remarkably affordable when compared with international cities of similar standard.
For an idea of costs, dinner for two at a good restaurant with wine will cost anything upwards of R500. Twenty cigarettes cost about R25, a Coke costs about R10 at a bar and a bottle of beer will be around R15. DSTV (satellite) costs about R500 per month.
Expats should aim for an income upward of ZAR 20,000 per month in order to maintain a comfortable independent lifestyle.
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