How to cease South African tax residency: the tests, SARS and the exit charge
Ordinary residence and the physical presence test, 330 days abroad, RAV01 and the SARS declaration, the deemed disposal of assets, the R1.25 million exemption and where to take tax residence next.
In short
- Three ways: stop being ordinarily resident, 330 days in a row abroad, or a double tax agreement.
- Telling SARS: the cessation date on RAV01 and a declaration with documents.
- Exit charge: a deemed disposal of worldwide assets, except South African property.
- Afterwards: tax only on South African income.
- The other route: stay resident and pay no tax on the first R1.25 million of foreign salary.
In detail
You cease South African tax residence in one of three ways: you stop being ordinarily resident, you spend at least 330 full days in a row outside the country, or a double tax agreement makes you resident of another country. You then tell SARS on the RAV01 form on eFiling, send a declaration with supporting documents, and account for the exit charge: a deemed disposal of your worldwide assets except South African property. From then on South Africa taxes only your South African income.
Rules follow the South African Revenue Service in 2026.
Who is a South African tax resident
South Africa taxes residents on their worldwide income and non-residents on income from a South African source. You are resident under one of two tests.
- Ordinarily resident: South Africa is the country you naturally return to after your travels, your real home.
- Physical presence: more than 91 days in South Africa in the current tax year, more than 91 days in each of the 5 previous tax years, and more than 915 days in total over those 5 years.
A person who is exclusively resident of another country under a double tax agreement is not a South African resident, even when one of the tests is met.
Three ways to cease tax residence
| How you were resident | How residence ends | From when |
|---|---|---|
| Ordinarily resident | You make your real home abroad, and objective facts support it | The day you ceased to be ordinarily resident |
| Physical presence test | At least 330 full days in a row outside South Africa | The day you left South Africa |
| Either test | A double tax agreement makes you resident of the other country | The date the agreement applies |
Ordinary residence is a question of fact: SARS weighs your intention against where you live, work, keep property and family, and how often you come back.
How to tell SARS
- RAV01 on eFiling: in the Income Tax Liability Details section you enter the date you ceased to be resident; SARS treats it as the first day of non-residence.
- Case and letter: SARS opens a case and writes to ask for supporting documents.
- Declaration: the signed declaration form with documents goes through eFiling or the SARS Online Query System.
| Basis | Documents |
|---|---|
| All declarations | Signed declaration, a letter of motivation with the facts, a copy of your passport or travel diary with every entry and exit stamp |
| Ceasing to be ordinarily resident | Your visa abroad, proof of permanent residence there, a tax residence certificate from the foreign tax authority, details of property, business interests, family, social ties and return visits |
| Physical presence test | Passport stamps or a travel diary showing 330 full days outside |
| Double tax agreement | A tax residence certificate from the other country |
We will work out your taxes after the move
The chat will ask about your income and countries and tell you where and how much you will pay.
The exit charge and tax after you leave
On the day you cease residence you are treated as having disposed of your worldwide assets, so capital gains tax applies to the growth in their value. South African immovable property is excluded: it stays in the South African tax net and is taxed when you sell it.
Afterwards South Africa taxes only South African income, such as interest from a South African bank, rent from South African property and work done in South Africa. Non-residents with a South African pension or annuity apply to SARS for a directive on relief under the double tax agreement.
Financial emigration through the South African Reserve Bank is a separate matter: SARS treats it as one factor, and tax residence ends only through the tests above.
Staying resident: the foreign employment exemption
A resident employee who works abroad for more than 183 full days in a 12-month period, including more than 60 days in a row, pays no South African tax on the first R1.25 million of foreign employment income. Income above R1.25 million is taxed in South Africa with credit for foreign tax. Independent contractors are outside the exemption.
Above R1.25 million a year, ceasing residence gives a cleaner result: one country of tax and no South African return on foreign salary.
Where South Africans take tax residence
A tax residence certificate from the new country closes the case with SARS fastest.
- United Arab Emirates - no personal income tax; the route is in UAE tax residency.
- Portugal - EU residence; details in Portugal tax residency.
- Cyprus - residence after 60 days under its own rule; see Cyprus tax residency.
- Mauritius - an island a 4-hour flight from Johannesburg.
The full list is in countries with no income tax and how to become a tax resident abroad.
We will help you get residence in your new country
SARS closes the case faster when you hold a residence permit and a tax residence certificate from your new country. The most common mistakes: leaving without a residence permit and having no new real home to show, sending the declaration without a residence certificate, and picking the cessation date without working out the exit charge. We match a country to your income, arrange the residence permit and help you obtain the tax residence certificate.
Details and the cost of support are with a manager in the chat.
Checklist for ceasing South African tax residence
- Choose the basis: ordinary residence, 330 days or a double tax agreement.
- Get a visa or residence permit and a tax residence certificate in the new country.
- Value your worldwide assets on the cessation date for the exit charge.
- Update RAV01 on eFiling with the cessation date and send the declaration with documents.
- File the return for the year of cessation, then returns on South African income only.
FAQ
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