Africa · ZAR
South Africa
Reviewed 2026-06-21
Top income tax
45%
Self-employed SS
No
VAT
16%
Capital gains
18%
Exit tax
Yes
Nomad visa
Yes
50
/ 100
Tax efficiency42
Ease to enter72
Ease to exit20
Cost of living92
Internet9
English100
South Africa taxes residents on worldwide income at progressive rates up to 45 percent, with a 27 percent corporate rate, 15 percent VAT, and an effective 18 percent capital gains rate for individuals. Residency is generally triggered by a physical presence test (more than 91 days per year plus aggregate-day rules), and ceasing residency triggers an exit tax on deemed disposal of worldwide assets. A remote work (digital nomad) visa launched in 2024 with applications opening in 2025, but solopreneurs should note CFC rules, dividends tax, and that the foreign income exemption covers employees rather than independent contractors.
Personal income tax
Income tax structureProgressive
Top income tax rate45%
Entry income tax rate18%
Top rate threshold$101,000
Taxation basisWorldwide
Local/state income taxNo
Social security
Self-employed social securityNo
Employee SS rate1%
Employer SS rate2%
Indirect & other taxes
VAT standard rate16%
Capital gains rate18%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxYes
Inheritance top rate25%
Property taxNo
Exit & residency
Exit taxYes
Exit tax triggerCeasing South African tax residency triggers a deemed disposal of qualifying worldwide assets at market value the day before departure, creating a capital gains tax charge on unrealized gains.
EU/EEA deferralNo
Days to trigger residency91 days
Corporate
Corporate income tax rate27%
WHT on dividends20%
CFC rulesYes
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaYes
DNV monthly income requirement$3,210
Entrepreneur visaYes
Ease of setup3 / 5
Lifestyle
Cost of living index30
Internet speed50 Mbps
English proficiencyHigh
Civil liberties78
Sources
- PwC Worldwide Tax Summaries — South Africa Individual: Taxes on personal income
- PwC Worldwide Tax Summaries — South Africa Individual: Residence and other taxes
- PwC Worldwide Tax Summaries — South Africa Corporate: Taxes on corporate income
- SARS — Foreign Employment Income Exemption (section 10(1)(o)(ii))
- World Bank Data — B-READY South Africa indicators
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.