Returning to South Africa in 2025

Returning to South Africa in 2025: What Expats Need to Know About Tax and Exchange Control

Published: June 06, 2025

South Africa continues to face challenges with brain drain, particularly in sectors like healthcare and technology. However, a growing number of expatriates are choosing to return home in 2025, drawn by improving economic prospects and a desire to reconnect with their roots. If you’re an expat considering a return, understanding the tax and exchange control implications is crucial to avoid unexpected financial hurdles.

South Africa operates on a residence-based tax system, meaning that if you become a tax resident again—either by meeting the physical presence test (spending over 183 days in the country in a 12-month period, including 60 continuous days) or by being "ordinarily resident"—you’ll be taxed on your worldwide income. For returning expats, this can lead to double taxation on foreign earnings if you haven’t properly ceased your tax residency in your previous country of residence. Double Taxation Agreements (DTAs) may offer relief, but these vary by country and require careful planning.

Exchange control is another key consideration. If you’ve been a non-resident for tax purposes, your South African assets may have been held in a non-resident account, giving you more flexibility to move funds abroad. Upon returning, you’ll need to reclassify your status with the South African Reserve Bank (SARB), which could limit how much money you can transfer out of the country. For instance, as a resident, you’re restricted to the annual Single Discretionary Allowance (SDA) of R1 million and the Foreign Investment Allowance of R10 million, both of which require SARS approval for larger amounts.

Before making the move, consult with a cross-border financial expert to ensure compliance with SARS and SARB regulations. At OffshoreFX, we specialize in helping returning expats navigate these complexities, ensuring your transition home is financially seamless.