South Africa has become a popular retirement destination due to factors such as its beautiful landscapes, temperament weather, large expat communities, and affordable cost of living. Most retirees to South Africa will be receiving their income in foreign currency which goes a long way in South Africa.

The primary requirement for the Retirement Visa is that the applicant must show that they have sufficient income to financially sustain themselves in South Africa. The Immigration Act requires that they must show income of at least the equivalent of R 37 000 per month in this regard.

The Act prescribes that this amount can either be from a pension or retirement annuity (it cannot be from a salary) or by showing that you have a “net worth” which is a combination of assets that realise the amount of R 37 000 per month.

In the case of illustrating that you have a “net worth” one can use other “retirement income” such as rental, interest and dividend income to achieve the R 37 000 per month threshold. The applicant can also show that they achieve the threshold income amount partly through the receipt of a pension / retirement annuity and partly through the receipt of other retirement income such as rental income.

Certain South African Embassies also allow the applicant to have an amount in cash that is equal to R 37 000 per month multiplied by the number of months that the applicant intends to reside in South Africa. In other words if the person wished to retire to South Africa for 48 months then they would need R 1 776 000 (48 months x R 37 000) in cash. However it must be borne in mind that not all Embassies allow this and accordingly this method should be approached with caution.

The Retirement Visa is issued for up to 4 years and can be renewed from within South African. Please don’t hesitate to contact us should you require further information.