It’s not unusual for South African expats to consider returning home after years of living abroad, particularly when faced with life changes such as retirement, family responsibilities, or shifting global job markets. But what many don’t realise is that returning to South Africa can come with unexpected tax consequences.
If you’ve been living overseas and earning foreign income, SARS (the South African Revenue Service) may already have you on their radar. Thanks to global tax data sharing agreements, such as the OECD Common Reporting Standard (CRS), SARS receives automatic reports from over 100 countries, including those with large South African expatriate populations. That means SARS knows more about your offshore income than you might think.
So, what happens when you come back?
Why SARS is keeping a close eye on expats returning home
South African expats returning home are often unaware that SARS might treat them as residents for tax purposes, even if they’ve been gone for years. This is especially true for individuals who never formalised their tax emigration.
Many people mistakenly assume that simply leaving the country ends their tax obligations. But unless you’ve officially ceased your tax residency status with SARS, through the formal tax emigration process, SARS still considers you a South African tax resident. That means SARS is entitled to tax your worldwide income from the date you left.
Read more: South African tax residency rules – expats, are you still tax residents of South Africa?
Haven’t been filing tax returns since you left? That’s a red flag.
Expats who stopped submitting tax returns to SARS after emigrating may face penalties and backdated tax liabilities if they return without first cleaning up their tax affairs. Failing to report your foreign income (even where earned legally) can lead to accusations of non-compliance. SARS takes this seriously.
If you didn’t inform SARS of your departure or stopped filing returns properly, the first step is to get yourself a cross-border tax specialist. They can help determine whether you may be able to backdate the cessation of your tax residency, or if you need to go through voluntary disclosure to regularise your position.
Read more: Left South Africa without informing SARS? What now for your tax resident status?
What expats must do before returning to South Africa
If you’re a South African planning to move back, the best thing you can do is get tax-compliant before returning home. This includes:
- Assessing whether you’re still considered a South African tax resident
- Reviewing the foreign income exemption (Section 10(1)(o)(ii)), which allows South African tax residents to be exempt up to R1.25 million from taxable income, subject to certain conditions
- Exploring Double Tax Agreements (DTAs) if you were living in a country that has one with South Africa
- Weighing up the option of tax emigration before returning, if you haven’t done so yet.
Each of these steps can significantly reduce your tax risk.
Why complete tax emigration before returning to South Africa?
Many South African expats mistakenly believe that because they’ve been living abroad, SARS no longer considers them tax residents. But unless you’ve formally completed tax emigration by submitting a declaration to SARS to cease your tax residency, you may still be seen as a South African tax resident, even while living overseas.
If you plan to return to South Africa permanently, it’s essential to complete tax emigration before you start planning your welcome-home braai. Here’s why:
1. Avoid automatic reinstatement as a tax resident
SARS uses physical presence and intention (ordinary residence) to assess tax residency. If you return to South Africa without having officially broken your tax ties, SARS may assume you were always a tax resident, which means:
- You could be taxed on your worldwide income, even while abroad
- SARS might issue a penalty assessment or demand outstanding returns
- You could face interest and non-compliance penalties for not submitting foreign income declarations
Read more: Breaking tax residency with SA: when to apply the physical presence or ordinary residence test.
2. Prevent backdated tax liability after coming home to South Africa
Without a formal SARS declaration to cease tax residency, returning expats risk having their tax residency retroactively applied, potentially going back years. This can trigger unexpected tax bills and compliance headaches. Completing tax emigration before returning helps establish a clean break in tax residency, reducing the risk of SARS applying residence-based taxation to previous years.
3. Plan your return to South Africa on your terms
By ceasing your tax residency before coming home, you gain control over your tax planning. This means you can:
- Manage capital gains on foreign assets from a non-resident perspective
- Strategically time your income and asset disposals
- Avoid double taxation by using applicable treaties or exemptions while still classified as a non-resident.
4. Reset your tax status correctly after coming home to South Africa
When you’re ready to become a South African tax resident again, you can do so from the date of your return, not before. You’ll be starting afresh, with:
- A reactivated SARS tax number
- A clean, compliant record
- No surprise penalties or SARS audits for your time abroad
Expat returning home to South Africa? SARS gives you 21 business days
Once you’re back in the country and your circumstances change (such as taking up permanent residence or employment), you’re required to update your tax residency status with SARS within 21 business days. Failing to address this can lead to complications, especially if you have previously declared yourself a non-resident and are now re-establishing ties with South Africa.
It’s essential to have a strategy in place for how you’ll re-establish your South African tax residency—or avoid it, depending on your plans.
Returning to South Africa after tax emigration? Here’s what you need to know
If you previously completed tax emigration, you were officially recognised by SARS as a non-resident for tax purposes. But once you move back permanently, you’ll likely become a South African tax resident again, and SARS will expect you to comply accordingly.
Key steps to take when returning to South Africa as an expat
- Reactivate your tax number if it has been dormant. Use the SARS reactivation form or eFiling.
- Update your details with SARS, including your SA address and employment information.
- Declare global income going forward. As a tax resident, your worldwide income becomes taxable in SA.
- Check your physical presence – 91 days in SA in the current year (and 915 days over 5 years) means SARS can consider you a resident.
- File annual returns to avoid penalties and non-compliance assessments.
- Review your financial setup — you may be subject to capital gains tax, estate duty, and donation taxes as a resident.
Once back, your non-resident status ends. There’s no need to “undo” your tax emigration as SARS will automatically treat you as a resident based on your presence and intent to stay.
How to retain non-resident tax status if you’re only returning to South Africa temporarily
Suppose you’re a former South African tax resident who completed tax emigration, and you’re only planning to return home temporarily. In that case, it’s possible to retain your non-resident status — but only if you don’t trigger South Africa’s tax residency tests.
To avoid becoming a tax resident again, you must:
- Limit your physical presence: You must not spend more than:
- 91 days in South Africa in the current tax year
- AND 91 days in each of the five preceding years
- AND a total of 915 days over those 5 years
If you meet all three conditions, you’ll be deemed a tax resident, even if you don’t intend to stay.
2. Avoid establishing intent to stay: SARS also uses the “ordinarily resident” test. If you settle into a permanent job, buy property, or bring your family with the intention of remaining, you could be classified as a tax resident, regardless of how long you’re physically in SA.
What to do:
- Track your days carefully
- Keep ties abroad strong (e.g. keep foreign property, residency, employment)
- Consult a cross-border tax specialist to make sure you don’t accidentally trigger residency again.
Warning: SARS is watching for expats who return — even short stays can create unintended tax consequences if you’re not careful.
You can come home without facing penalties—if you plan wisely.
The good news? Returning expats who act before their move can avoid trouble. Whether you need to regularise past non-compliance, claim a DTA exemption, or prove tax non-residency during your absence, a clear plan can help you avoid SARS scrutiny and costly surprises.
Need help? FinGlobal has helped thousands of South Africans successfully manage their tax compliance, expat tax planning, and tax emigration. Whether you’re planning to return or are already back on local soil, we can help you set the record straight with SARS before they come knocking.
To get started, leave your contact details below, and we’ll be in touch to discuss how we can help smooth your return to South Africa as an expat.