US-South Africa Expat Taxes: Your Essential Guide

South Africa is a breathtaking country located at the southern tip of the African continent, bordered by Namibia, Botswana, Zimbabwe, Mozambique, and the Indian and Atlantic Oceans. It’s known for its stunning landscapes, from beaches and mountains to safari parks, and is ranked one of Africa’s most developed countries. With vibrant cities like Cape Town and Johannesburg, world-class wine, and a relaxed outdoor lifestyle, it’s easy to see why thousands of US expats are happily calling South Africa home. Even with sunny days, biltong cravings, and spontaneous wildlife sightings becoming the new normal, your US tax responsibilities are still part of the expat package. Fortunately, filing your taxes from abroad doesn’t have to be overwhelming. That’s why we created this guide—to help US expats in South Africa stay informed and stress-free when it comes to US-South Africa expat tax responsibilities.

Who Should File US Expat Taxes in South Africa?

Deadlines for US Expat Taxes

Catch-Up with the Streamlined Procedure

Filing US Taxes for Your Family Abroad

Tax Forms Expats in South Africa Should Know

Securing Your South African Visa

South African Tax Requirements

US-South Africa Expat Tax Agreements

Self-Employment Taxes for Expats in South Africa

Investing in South Africa as an American

Thinking of Retiring in South Africa?

Tax Compliance Solved with MyExpatTaxes

Who Should File US Expat Taxes in South Africa?

According to the IRS, anyone who is either a US citizen or a Green Card holder that meets or surpasses the minimum income threshold must file a tax return. As the US taxes based on citizenship rather than residency, your IRS obligations travel with you. In 2025, you’ll need to file your 2024 US taxes if meet any of the following thresholds:

Filing Status	Income Threshold
Single	$14,600
Married Filing Jointly	$29,200
Married Filing Separately	$5
Self-Employed	$400
Qualifying Widow(er)	$29,200
Head of Household	$21,900

Deadlines for US Expat Taxes

The standard US tax deadline is April 15th, but expats automatically get an extension to June 16th, giving you extra time to get your documents in order. Still need more time? You can request an extension to October 15th using Form 4868.

Catch-Up with the Streamlined Procedure

If you’ve missed a few years of US tax filings, don’t worry—the Streamlined Procedure can help. This IRS program allows eligible expats to catch up without penalties, as long as your failure to file was non-willful (in other words, you didn’t know you had to file).

To qualify, you’ll need to file the last three years of tax returns and the last six years of FBARs. You’ll also submit a short statement certifying that your non-compliance was accidental. For many expats in South Africa, this is the easiest and safest way to get back on track and stay in the IRS’s good graces. It’s essential to file with the Streamlined Procedure BEFORE the IRS contact you, or you lose eligibility and could be subject to significant penalties.

Filing US Taxes for Your Family Abroad

Choosing the right filing status is the first step in optimizing your tax return. If you’re married and living in South Africa, your US filing status will depend on your spouse’s citizenship.

Married to a US Citizen or Green Card Holder?

You’ll likely want to file as Married Filing Jointly, which typically offers the best tax benefits. The IRS expects married couples to report their global income and assets together, regardless of where they live—and yes, that includes South Africa!

Married to a Non-US Citizen?

Your spouse doesn’t need to file a US tax return if they aren’t a US citizen or Green Card holder. In this case, many expats choose to file as Married Filing Separately to avoid reporting their spouse’s income and financial details to the IRS. This is a common and completely valid option for mixed-nationality couples abroad.

Head of Household

If you have a qualifying child and cover more than half the cost of maintaining your home, you might be eligible to file as Head of Household. This status can offer better tax rates than filing separately, so if you qualify, it’s worth considering.

Read More: Expat Filing Status and Gross Income

Child Tax Credits for Families Abroad

If you’re a US parent living abroad, you may be eligible for the Child Tax Credit (CTC). For each qualifying child under the age of 17, you can claim up to $2,000. Up to $1,700 is available as a refundable credit with the Additional Child Tax Credit (ACTC) if you earn at least $2,500 and your credit exceeds your tax liability. That refund could help with groceries, school fees, or even a family tour of the Garden Route!

Good to know: MyExpatTaxes automatically checks your Child Tax Credit eligibility and calculates your refund, ensuring that you take maximum advantage of all available benefits.

Tax Forms Expats in South Africa Should Know

As a US citizen living and working in South Africa, there are a few tax forms you’ll want to get familiar with before filing your return. These fall into two main categories: forms that help you avoid double taxation, and forms used to report foreign accounts and assets.

To reduce your US tax bill, you may be able to claim:

• Foreign Tax Credit (FTC): Offers a dollar-for-dollar credit for income taxes paid to South Africa.
• Foreign Earned Income Exclusion (FEIE): Lets you exclude up to $126,500 of foreign-earned income from US taxes.
• Foreign Housing Exclusion: Allows you to deduct eligible housing expenses in excess of $20,240 like rent, utilities, and insurance, which can be especially useful in pricier cities like Cape Town or Johannesburg.

You may also need to report your foreign financial assets using:

• FATCA (Form 8938): Required if your foreign financial accounts and assets exceed IRS thresholds, starting at $200,000 for single filers.
• FBAR (FinCEN Form 114): Needed if your combined maximum account balances go over $10,000 at any point in the year.

Securing your South African Visa

You have a variety of visa options to enter South Africa as a US expat. Travelers don’t need a visa for stays of up to 90 days.

For longer stays, the Temporary Residence Visa offers multiple categories. Each visa demands extensive paperwork, financial statements, police clearance, and in some cases, medical reports. The Work Visa is only available to foreigners where South African citizens with the relevant skills are not available for appointment. The Relatives Visa is for expats with immediate family who are South African citizens or permanent residents. The Business Visa requires investment of at least ZAR 5 million and compliance with local employment rules. The Retired Person’s Visa suits those with a monthly income of at least ZAR 37,000. A visitor’s visa is also available for people who want to visit South Africa for medical treatment of less than three months.

Permanent residency is available after five years on a qualifying temporary visa. Full visa details are on the South African Department of Home Affairs.

South African Tax Requirements

South Africa uses two methods to determine tax residency: the ordinary resident rule and the physical presence test. You’re considered a tax resident if you’ve made South Africa your full-time home. Alternatively, under the physical presence test, you may be classified as a resident if you’ve been in South Africa for over 91 days in the current year and 915 total days over the past five years. South Africa taxes residents on worldwide income, while it only taxes non-residents on income sourced within the country.

The South African tax year runs from March 1 to the end of February. Most taxpayers will need to file in October, unless they are classified as “provisional taxpayers” (those with income from self-employment, rental property, or investments), in which case the deadline generally extends to January. Deadlines are subject to change so check the SARS website for the latest dates.

The country uses a progressive tax system, with rates ranging from 18% to 45%, depending on your level of income. Additionally, although South Africa doesn’t have a broad social security system like the US, both employers and employees contribute 1% each to the Unemployment Insurance Fund (UIF), up to a capped salary amount.

US-South Africa Expat Tax Agreements

The US-South Africa tax treaty is designed to prevent double taxation and ensure fair treatment of income such as dividends, royalties, and business profits. It clarifies which country has taxing rights over specific types of income. However, like most US treaties, it includes a “saving clause”, which allows the US to continue taxing its citizens and permanent residents as if the treaty did not exist. If you’re paying taxes in South Africa, you still need to report your global income to the IRS.

South Africa does not have a totalization agreement with the US. Totalization agreements are used to avoid dual social security contributions by coordinating coverage between countries. Without this agreement, US expats working in South Africa as self-employed or for US companies may be required to contribute to both the US and South African social security systems, increasing their overall tax burden.

Self-Employment Taxes for Expats in South Africa

If you’re a US citizen living in South Africa and working for yourself, you might be surprised to learn that you’re still on the hook for US self-employment tax. Even though you’re abroad, the IRS considers your global income fair game, including freelance work, consulting, or any business you run solo.

US expats must pay 15.3% self-employment tax if they earn more than $400 in net self-employment income in a year. This covers Social Security and Medicare, even if you’re also paying into South Africa’s system. Unfortunately, there’s no totalization agreement between the US and South Africa, which means you can’t avoid paying into both systems.

While the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) can help offset income tax owed to the US, neither can lower your self-employment tax.

Investing in South Africa as an American

Investing in South Africa can be a smart move for US expats looking to diversify their portfolio. But before you dive in, it’s important to understand how the local market works, and how your investments may affect your US tax bill.

• Real Estate: Foreigners can buy property in South Africa, including freehold property, excluding agricultural land. If you’re not a resident, banks may only offer up to 50% financing. Property transfers are securely managed through the country’s deeds offices, and typically take 6-12 weeks to complete. Property purchasers pay a transfer duty of between 0%-13%. Capital gains tax applies to the sale of property that is not your primary residence, and non-resident individuals are liable for up to 7.5% withholding tax.
• US Retirement Accounts: You can still contribute to US-based IRAs while living abroad, provided you have eligible earned income. The annual contribution limit for Traditional or Roth IRAs is $7,000 a year ($8,000 for those 50 or over).
• South African Investments: South African mutual funds, unit trusts, and ETFs offer solid local options but many are classified as Passive Foreign Investment Companies (PFICs) under US tax law. That means more complex reporting and potentially higher taxes.

Consulting with local legal and financial advice is always advisable to ensure you stay compliant. If you invest in a PFIC or other foreign mutual funds, MyExpatTaxes can simplify reporting to the IRS for an affordable fee.

Thinking of Retiring in South Africa?

With its lower cost of living, warm climate, and diverse natural beauty, it’s no surprise many Americans choose to settle in the rainbow nation for their retirement.

To retire legally in South Africa, you’ll need to apply for a retirement visa. This requires proof of a monthly income of at least ZAR 37,000 (around $2,000 in 2025) from a pension, retirement annuity, or passive income like rental properties or dividends. There’s no minimum age to be eligible, and the visa is valid for up to 4 years and can be extended provided you continue to meet the requirements.

Healthcare in South Africa is provided with a mix of public and private services. While public health care is available, most expats opt for private care, which offers faster service, better facilities, and English-speaking services. With state-of-the-art equipment and top professionals, private care comes with a hefty price tag so securing private health insurance in advance is essential.

When it comes to pensions, you can still receive your US Social Security benefits while living in South Africa. These payments may cover a comfortable standard of living, given that the average cost of living in South Africa is 63% less expensive than in the US. As a South African resident, you’ll be taxed on worldwide income, including any pensions.

Tax Compliance Solved with MyExpatTaxes

Let’s be honest, filing US taxes from abroad can feel like solving a puzzle blindfolded. MyExpatTaxes simplifies the process for Americans in South Africa with software built for expats, not just adapted for them.

Whether you’re self-employed, retired, investing, or simply earning a paycheck, MyExpatTaxes helps you claim all available credits and benefits, and ensures all the essential forms are filed so you stay tax compliant. We’re fast, accurate, and IRS-approved.

Join the thousands of satisfied clients who file their US taxes around the world with our award-winning expat tax software.