Taxes in South Africa

The South African tax year begins on 1 March, and you will be deemed a temporary resident of South Africa for tax purposes once you spend 183 days in the country in one tax year. You become a full resident for tax purposes after around 3 years (check), when you are liable to pay tax on your worldwide income, not just South African income. Remember that even non-South African residents are taxed on their South African income. South African residents are taxed on their worldwide income, but there are double taxation agreements with the UK and other governments, so for instance if you pay tax on a rental property in London you won't pay tax on this in South Africa as well as to HMRC.

It may well pay for you to ensure you do not become a tax resident in South Africa, and if this is unavoidable expats should make sure they are aware of when they become resident so they can plan accordingly. Potential expats are strongly advised to take tax advice from an accountant before moving to South Africa.

Once you become a full tax resident of South Africa, you are likely to remain domiciled in the UK (or other home country) and Inheritance tax would therefore still be paid there in the event of your death.

Income tax rates in South Africa range from 18 percent to 40 percent. Capital gains tax is 10 percent, and will need to be paid on sale of a South African property should a gain have been made.