| Whilst many foreigners dream of relocating or moving | | | | If a foreigner wishes to invest less than ZAR 2.5 million |
| to South Africa, many foreigners are actually taking a | | | | into the book value of the business, a recommendation |
| chance and moving their families and lives to our | | | | letter (waiver) is required by the Department of Home |
| beautiful country. As this process can often be difficult | | | | Affairs, these recommendation letters are issued by |
| and tedious, more so if you are not correctly informed | | | | the Department of Trade and Industry (DTI) to waiver |
| prior to your immigration process, there are many | | | | the capitalized requirement. These letters are also |
| aspects of relocating to South Africa that is required | | | | issued for specific industries, e.g. Tourism industry |
| to be thought through before the new adventure can | | | | (guest houses), information and communications |
| begin. | | | | technologies and others. |
| Many foreigners only realize the amount of matters | | | | Business permits are issued usually for 24 months, but |
| that have to be sorted through and arranged once | | | | can be issued for up to 5 years, this is at the |
| they arrived in our stunning country. There is no need | | | | Department's discretion. Before the expiry of this |
| to stress, if all information is at least known before | | | | permit, the same can be extended. |
| arriving, this will save you many nights of worry and | | | | Permanent Residency can be applied for based on |
| many more days to enjoy our sunshine, beaches, | | | | the Business permit category, based on self-employed |
| mountains and beautiful flora and fauna with yourself | | | | applicants who invest more than ZAR 2.5 million into |
| or your family. | | | | the book value of the business. If a foreigner's |
| Transferring money, bank accounts, exchange control, | | | | investment is less than the prescribed amount, waiting |
| taxation and investments information | | | | on the outcome of the waiver application is required to |
| - Transferring Money into South Africa | | | | be done before permanent residence can be applied |
| For a foreigner wanting to reside in South Africa, or | | | | for. |
| even if a foreigner wants to invest in the country in | | | | For foreigners wishing to operate a business in South |
| one way or another, an agent or consultancy is | | | | Africa, the best option would be to seek advice from |
| always the best to approach for the finer details | | | | an established Immigration company to receive the |
| regarding best exchange rates when transferring | | | | correct advice and protocol to be established to avoid |
| money, investments, transferring of money and tax | | | | future problems if done personally. |
| implications. | | | | - Retired Permits |
| - Bank Accounts in South Africa | | | | A South African retired permit is issued to a foreigner |
| Opening up of bank accounts is a simple process, | | | | who wishes to reside in South Africa for 6 months or |
| provided the correct documentation is supplied to the | | | | longer, there are no age minimum or maximum |
| relevant consultant. If a foreigner wants to obtain a | | | | requirements for this permit category. |
| personal/individual bank account (while on a visitors | | | | A foreigner wishing to retire in South Africa and obtain |
| visa), a "non-resident" account can be opened for that | | | | a retired permit must be able to prove the following |
| person. Whilst these accounts can have all the | | | | financials (a) ZAR 20,000 per person, per month for a |
| features of normal banking account, the "non-resident" | | | | maximum period of 48 months (four years) through |
| accounts are restrictive in as much as they cannot | | | | cash assets, capital (bank statements), pensions, actual |
| generally receive deposits in Rands. Once on a | | | | rental income or investment interest income for a |
| temporary residence permits, these accounts are | | | | temporary residency application or (b) ZAR 20,000 per |
| changed to "resident" accounts. It is best to speak to a | | | | month - life-long guaranteed income through pensions, |
| Bank consultant to get the best possible service and | | | | actual rental income or investment interest income for |
| views. | | | | a permanent residence application. |
| The foreigner's closed corporation can obtain a | | | | If a foreigner who would like to apply for permanent |
| business account, there would be no currency | | | | residence based on retired category and has not been |
| restrictions in terms of Rand deposits, as the closed | | | | married/in a permanent relationship for 5 years or |
| corporation is viewed as a legal identity in its own right | | | | longer, the above ZAR 20,000 per month, would be |
| and in the foreigner's case, is incorporated in South | | | | per person, resulting in the foreigners submitting proof |
| Africa. To receive the best service and required | | | | of ZAR 20,000 per month, per person, each. |
| documentation, speak to a banking consultant or an | | | | The retired person's temporary residence permit is |
| agency that can assist with this nature of services. | | | | issued for a period of 6 months to 48 months |
| - Exchange Control | | | | (maximum period); the period on the retired permit is |
| Upon transferring money to South a foreigner will be | | | | dependent on the financial income provided. |
| confronted with the exchange control regulations in | | | | If a person would like to obtain a retired temporary |
| South Africa. | | | | residence permit, this retired permit only does not |
| South African Exchange Control Regulations are a set | | | | permit the holder to work in South Africa. A work |
| of laws controlling the in and outflow of money in | | | | endorsement would be required in order for the |
| South Africa. An authorised dealer in every major | | | | foreigner to conduct work. If a work endorsement is |
| South African bank are required to make sure on | | | | endorsed with the retired permit, this endorsement is |
| behalf of the Reserve Bank that incoming and | | | | specific, therefore, not allowing the holder to work at |
| outgoing money complies with the regulations. | | | | any establishment, but for the company employing the |
| A foreigner can transfer an unlimited amount of | | | | foreigner at that time. |
| money into South Africa. As long as the foreigner | | | | No holder of a temporary residence retired permit is |
| transfers the capital via a bank within South Africa, it | | | | able to operate a business or study in South Africa. |
| will get registered with the Reserve Bank. | | | | - Life-Partner / Spousal permits |
| There are limitations in place when it comes to | | | | All foreigners require a permit to reside legally in South |
| transferring capital out of South Africa. | | | | Africa, whereby a spouse (husband or wife) or a |
| The rules and limitations for a foreigner depend on the | | | | life-partner (permanent relationship) of a South African |
| status for exchange control purposes when the | | | | citizen/permanent resident holder would need to apply |
| person arrives in South Africa. The Reserve Bank | | | | for a spousal or a life-partner permit. A temporary |
| distinguishes between foreign nationals, temporary | | | | residence permit can be issued to a foreign spouse |
| residents, immigrants and South African citizens. | | | | life-partner who has been married/permanent |
| Since the status of people relocating to South Africa | | | | relationship to a South African for less than 5 years, |
| varies according to the kind of permit they receive, | | | | but in turn, permanent residence can only be applied |
| individual advice is necessary. | | | | for once the couple have been married/permanent |
| It should be noted that it is not correct that foreigners | | | | relationship for 5 years or more and can prove this |
| relocating to South Africa cannot take any of the | | | | time together. |
| money they brought into the country out again. There | | | | It would be the more valuable option to apply for |
| are rules and regulations, but they do not permit the | | | | temporary residence first (whether married/permanent |
| retransfer of capital introduced into South Africa. | | | | relationship for more or less than 5 years), as |
| - Taxation | | | | permanent residence takes approximately 18 months |
| South Africa has a residence based tax system, | | | | (these timescales are not guaranteed), therefore the |
| which means that all tax residents are taxed on their | | | | foreign spouse/life-partner would be legal to reside in |
| worldwide income, irrespective of where it was | | | | South Africa, whether applying for permanent |
| earned. | | | | residence or not. |
| Even in case that a foreigner is not classified as a tax | | | | It is very beneficial to obtain a South African spousal |
| resident in South Africa from the start, the foreigner | | | | or life-partner temporary residence permit, as |
| will have to pay tax on income generated from a | | | | foreigners who are holders of these permits are able |
| source within South Africa. | | | | to work, operate a business or study in South Africa |
| It is important that a person takes care to that he or | | | | with the correct endorsement. This permit negates the |
| she is compliant with both Revenue Services, the one | | | | need for work permits and business permits to be |
| in South Africa and the one in his/her home country. | | | | applied for and all the vast number of documentation |
| South Africa has signed double tax agreement with | | | | that is required. While these spousal or life-partner |
| many countries to avoid that a person pays tax for | | | | permit endorsements require only a few additional |
| the same income in two countries at the same time. | | | | documents to enable the foreigner to work/operate a |
| A foreigner should seek expert advice to determine | | | | business or study in South Africa. |
| from when they will be classified as a tax resident in | | | | If a foreigner will be conducting work, operating a |
| South Africa and what consequences this status will | | | | business or studying in South Africa, it is best to know |
| have on your tax situation. | | | | exactly what endorsement or company to work for, |
| - Investments | | | | business plans or educational institution, as these |
| South Africa has always welcomed foreigners who | | | | endorsements are specific. Therefore, the name of |
| invest in our country. For those foreigners who know | | | | employer/business or educational institution will be |
| only limited information on investment options, this | | | | mentioned on the permit, not allowing the foreigner |
| matter should be dealt with by an expert financial | | | | work for another company, operating a different |
| controller or agency that can assist with this service. | | | | business or studying with a different institution, without |
| Investment in this country is on a large scale and many | | | | re-applying (with a new application) for a new specific |
| foreigners, who immigrate to South Africa, do not | | | | endorsement on the spousal or life-partner permit. |
| receive the best service, exchange rates, etc - | | | | The length of the temporary residence permit is issued |
| therefore, causing losses, instead of financial gain. With | | | | by the Department of Home Affairs at their discretion |
| a mixture of different opportunities and jurisdictions, it | | | | and is issued for a period between 1 - 3 years. The |
| can prove to be a multitude of choices and decision to | | | | South African spousal or life-partner permits can be |
| make. | | | | extended at the end of their validity, provided that the |
| Buying Property in South Africa | | | | marriage certificate or proof of relationship is submitted |
| There are many opportunities to buy a property in | | | | with the extension application. |
| South Africa, for a holiday home or for indefinite | | | | - Relatives Permit |
| periods - there is an extensive market for those on | | | | While many foreigners who reside in South Africa do |
| the look out for the best possible properties that South | | | | not have direct family in the country, there are |
| Africa has to offer. Although the market is aimed at | | | | foreigners who do have family (direct - 1st and 2nd |
| the "Seller" and the 'Seller's" needs, there are those | | | | kinship) residing permanently (obtained permanent |
| agents who are on the side of the buyer (foreigner). | | | | residence) or are South African citizens in the country, |
| These agents are the best to speak with concerning | | | | these foreigners may apply for a relatives permit. |
| purchasing a property in South Africa, as they will | | | | For temporary residency, the following lines of kinship |
| always ask the right questions, find the best possible | | | | may apply for temporary residency, parents, children, |
| prices, areas, etc for the foreigner and family. | | | | siblings. In order to apply for permanent residence, only |
| Prospective foreign buyers face a number of matters | | | | parents and children are permitted to apply under this |
| that are unique to those purchasing property abroad, | | | | category. |
| some matters are: correct financing, exchange control | | | | The temporary residence permits are usually issued |
| matters, decreased knowledge of geographical areas, | | | | for a period of 1 - 3 years, these permits can be |
| difference in buying method from abroad. It is best for | | | | extended if necessary provided the documentation is |
| the foreigner to find an agent or South African | | | | supplied. Conducting work, operating a business or |
| company who can assist with these matters and | | | | studying in South Africa is not permitted for the holders |
| others, through the entire process, as to not leave the | | | | of this permit. |
| foreigner with questions unanswered but, to enable the | | | | - Work permit |
| foreigner to enjoy their time in South Africa and see | | | | In order for a foreigner to work in South Africa, a work |
| their path leading to their new beginning growing. | | | | permit is required to be obtained from the Department |
| School and Employment in South Africa | | | | of Home Affairs. Obtaining a work permit can seem |
| With all families, foreign or South African, finding the | | | | daunting and a complex process as foreigners often |
| right school and employment in the country, if needed, | | | | are informed by potential employers that they cannot |
| is two of the most important aspects of relocating to | | | | employ them until a work permit is in place, this is not |
| another country. | | | | necessarily correct, as many immigration companies |
| In South Africa, there are many educational institutions, | | | | may contact the prospective employer and |
| whereby children of foreigners (after obtaining a study | | | | communicate the realities regarding work permit |
| permit for that school) spend most of the days. It is | | | | matters. |
| always important to find a school that has many of | | | | There are four types of work permit categories for |
| the activities that the child enjoys, some schools focus | | | | foreigners wishing to conduct work in South Africa: |
| on sports activities and some schools focus on | | | | 1. General Work permit - a foreigner wishing to apply |
| recreational activities, there are many schools which | | | | for a General Work permit is required to provide a |
| have a medium with both kinds of activities offered to | | | | conditional offer of employment from a South African |
| their students. | | | | based employer amongst other documentation (i.e. |
| South Africa offers many wonderful benefits to reside | | | | advertisement, etc). This work permit is also required |
| in, with its increasingly first-world infrastructure and its | | | | to include confirmation that the foreigner who is |
| growing influence in the international market, career | | | | applying for this permit possesses the necessary |
| aspirations can constantly be fulfilled. If a foreigner | | | | qualifications, certified and approved by the South |
| would like to work in South Africa, the necessary work | | | | Africa Qualifications Authority (SAQA) and |
| permit would need to be obtained in order for the | | | | confirmation of the relevant work experience. |
| foreigner to work legally in the country. It is best to | | | | These permits are issued by the Department for a |
| speak with an immigration agency in order to find out | | | | period of 1 - 5 years. A person, who has been residing |
| what work permit would be best suited to the | | | | in South Africa on a General Work permit for 5 years |
| foreigner in question. | | | | or longer, may apply for permanent residency |
| Permits for residence in South Africa | | | | thereafter. |
| In order for a foreigner to reside legally in the country, | | | | 2. Quota Work permit - a foreigner who falls within a |
| irrespective of the visitor's visa obtained either at the | | | | certain professional criteria in which skills are |
| border when entering the country, or before arrival | | | | considered scarce within South Africa are able to |
| from the relevant Embassy, the foreigner would need | | | | apply for a Quota Work permit. No employer is |
| to reside in South Africa on a valid permit constantly in | | | | required for this permit to be applied for. This work |
| order to prevent fines incurring, deportation back to the | | | | permit is also required to include confirmation that the |
| country of origin or imprisonment. | | | | foreigner who is applying for this permit possesses the |
| There are many different permits and these are | | | | necessary qualifications, certified and approved by the |
| issued at the discretion of the Department of Home | | | | South Africa Qualifications Authority (SAQA) and |
| Affairs to the foreigners who qualify for these | | | | confirmation that the applicant has at least 5 years of |
| appropriate permits. | | | | relevant working experience in the appropriate field. |
| - Visitor's Extension Permit (holiday/visit) | | | | These permits are also issued by the Department for |
| A visitors extension permit is issued to a foreigner only | | | | a period of 3 - 5 years. If a foreigner enters the |
| once in succession (after initial issuance of visitors visa | | | | country on a Quota work permit, the holder must |
| when arriving in South Africa), therefore, the maximum | | | | submit confirmation of having secured employment |
| stay that a foreigner can reside in South Africa on a | | | | within a specific category within 90 days of arrival (i.e. |
| visitors permit/visa is 6 months (160 days), this is | | | | the Quota Work List issued by the Department of |
| dependant on the country of origin's initial visitors | | | | Home Affairs). After a foreigner receives a Quota |
| permit, as many countries issue the visitors visa under | | | | Work Permit, while in South Africa, this foreigner is |
| 90 days, etc. Once the 6 months has come to an end, | | | | required to confirm employment in the specific |
| the foreigner would need to leave the country, or apply | | | | category within 90 days of receiving the permit; |
| for a temporary residence permit (if the foreigner | | | | thereafter a General Work permit is applied for to the |
| qualifies for a specific permit). | | | | Department of Home Affairs. |
| In order to receive a visitors visa at the border (i.e. | | | | 3. Exceptional/Extraordinary Skills permit - a foreigner |
| airport), the foreigner who is entering South Africa is | | | | who possesses exceptional skills may obtain this |
| required to show a return ticket to the country of origin | | | | temporary residence permit. In order for a foreigner to |
| within 3 months (90 days) after arrival, if not, the | | | | qualify for this permit, the application for an Exceptional |
| officials at the borders are able to deny entry into | | | | Skills permit must be accompanied by letters from |
| South Africa. | | | | foreign or South African organs of state or from an |
| - Study permit | | | | established South African academic, cultural, business |
| In South Africa, a foreigner who would like to study in | | | | body confirming the exceptional skills of the applicant. |
| an educational institution would require a South African | | | | With these letters, any proof which substantiates the |
| study permit (temporary residency). There are 2 | | | | claim to exceptional skills/qualifications must be |
| options for a study permit for the respective | | | | submitted, such as testimonials from former employers, |
| foreigner(s): | | | | publications or dissertations are required. |
| The first option would be for foreign families | | | | This exceptional skills permit is issued for a period of 1 |
| immigrating to South African with children from the age | | | | - 5 years, at the Department's discretion concerning |
| 6 to 16 (as all children from the age of 6 to 16 are | | | | the exceptional skills. Permanent Residency is |
| required by law to attend schooling, therefore, requiring | | | | permitted to be applied for under this category. |
| a South African study permit). If a child is young | | | | 4. Intra-Company Transfer permits - a foreigner who is |
| enough to attend crèche, pre-school, etc, | | | | being relocated from a branch in the country of origin |
| provision may be made by the Department to issue a | | | | to a sister branch, subsidiary or affiliate in South Africa. |
| study permit to the child(ren), this is done with their own | | | | The holders of these permits are seen as a |
| discretion. These permits are issued to the length of | | | | temporary recruitment options for the employer by the |
| the schooling period, the maximum period length of a | | | | Department of Home Affairs; therefore, these permits |
| study permit is 3 years and these permits can be | | | | will only be issued for a maximum period of 2 years. |
| extended a number of times. | | | | - Corporate Permit |
| The second option would be for individual (stand alone) | | | | A Corporate permit is seen as a thread of a work |
| foreigners wishing to continue their studies in South | | | | permit, but is issued by the Department of Home |
| Africa (e.g. university, college, etc). These study permits | | | | Affairs to South African based companies |
| are issued by the Department of Home Affairs to the | | | | (corporates) who wish to employ foreigners who may |
| applicant who has been "provisionally accepted" to a | | | | take up employment for the applicant for a limited time. |
| South African Registered Educational Institution. These | | | | These permits also offer these companies the |
| study permits are issued to the length of the course; | | | | possibility to employ great numbers of employees |
| this is done with the Department's discretion and can | | | | abroad. |
| be extended is necessary. | | | | Due to South Africa's ever growing market, the |
| A person (foreign student), over the age of 16 years is | | | | corporate permit enables the companies, an excellent |
| able to conduct work for 20 hours per week during | | | | way to manage their human resources, as each |
| their term (semester) or when the workplace is a | | | | application is aimed at an individual work permit for a |
| learning institution on a South African study permit. | | | | predetermined number of required foreign employees, |
| - Business Permits | | | | with this application, having to submit detailed job |
| Business permits are issued to foreigners who wish to | | | | descriptions, specific requirements and the proposed |
| operate a business in South Africa, whether it be | | | | remuneration in respect of each employee. |
| closed corporations, sole proprietors, etc. These | | | | These are detailed and lengthy applications that require |
| permits are issued to those foreigners who wish to | | | | vast amounts of attention to detail. The Department |
| invest in an already established business or establishing | | | | issues corporate permits for a maximum period of 5 |
| a new business. | | | | years. In order for an extension to be considered, the |
| In order to qualify for a business permit, the foreigner | | | | corporate companies have to appeal to the |
| must submit proof stating that they wish to invest or | | | | Department of Labour and Department of Trade and |
| have already invested an amount of (a) ZAR 2.5 | | | | Industry that the positions they require are still in |
| million in cash in foreign currency, (b), a capital | | | | shortage in South Africa. |
| contribution of at least ZAR 2.5 million or (c) at least | | | | There are a number of other permits that can be |
| ZAR 2.5 million in cash in foreign currency and a capital | | | | applied for, if the foreigner qualifies, but the most |
| contribution of ZAR 500,000 into the book value of the | | | | common South African permit options would be the |
| business in question, along with other substantial | | | | above. |
| documentation proof (i.e. business plan). | | | | |