South Africa: residency, citizenship, tax and living

South Africa has two pathways to permanent residency: the direct pathway, which is reserved for people who have resided in the country on a work permit for a number of years, and the residency-on-other-grounds pathway, which is open to individuals with a job offer, investors, retirees, as well as those with sufficient means to support themselves without working.

While South Africa doesn’t have a Golden Visa-style program for investors, you can still become a permanent resident by investing in a business in the country. You can establish a new business or invest in an existing one, with a minimum investment of ZAR 5 million, equivalent to USD 300,000, or less if you invest in a business in strategic industries.

It takes 5–10 years to become a citizen of South Africa, depending on your permanent residence pathway. Pathways that grant you permanent residency without previous residence in the country (investor, retiree, sufficient means pathways) will lead you to citizenship eligibility after five years of permanent residence. The direct pathway leads to permanent residence in five years, bringing the total number of years to citizenship to 10.

South Africa imposes a personal income tax on non-residents only for the income derived within the country. The country uses a progressive tax system, with rates ranging from 18% to 45%. Capital gains tax is imposed at a rate of 18% on gains from disposal of South African immovable property, interest in companies with large property holdings, and property of South African permanent establishments.