Financial tips for UK expats moving back to SA

SOUTH Africa faces many challenges, but a clear trend is emerging of expats returning home. Stats SA’s Migration Profile Report for South Africa, released last year, shows that since 2000, the number of SAs in the UK has grown from 136,720 to 247,336. But in a move that some have dubbed “reverse emigration”, many are heading back.

- JULIAN ADSHADE

The top reasons for coming back range from missing the SA lifestyle and family and friends, to the bad weather and high cost of living in the UK. The UK is significantly more expensive than South Africa, especially when it comes to housing, eating out, and labour costs. For the same income, South Africa offers families better homes, an affordable lifestyle, and access to good schools.

Here are the financial implications for expats returning to South Africa.

Ensure your finances are in order before you move back

A move between countries shifts tax residency, so you will need to determine your tax residency status in both the UK and South Africa, as this will impact how your income and worldwide assets are taxed. Be aware that South Africa taxes residents on their worldwide income while non-residents are taxed only on SA-sourced income. It is important to familiarise yourself with the UK-South Africa DTA to avoid being taxed twice on the same income.