The South African tax residency test is how SARS decides whether you’re a tax resident or a non-resident. This matters because it determines how much tax you owe. If you’re a resident, SARS taxes you on everything you earn anywhere in the world. If you’re a non-resident, SARS only taxes you on income that comes from South African sources. The difference can be hundreds of thousands of rands per year.
SARS uses two tests to figure out your status. The first is the ordinarily resident test. If that one doesn’t apply to you, SARS moves to the second one, the physical presence test. You only need to pass one of them to be considered a tax resident. This guide explains both tests in plain English, with examples of how they apply to real situations.
The Ordinarily Resident Test (The “Real Home” Test)
This is the primary South African tax residency test, and it’s the one SARS applies first. The question it asks is simple: is South Africa your real home?
In legal terms, you’re “ordinarily resident” in South Africa if SA is the country you would naturally and as a matter of course return to after being away. It’s your usual or principal residence. Your real home. The place where your life is centred.
This test is subjective. That means there’s no formula or day count. SARS looks at your overall situation and makes a judgment call. Here are the factors they consider:
| Factor SARS looks at | What it means |
|---|---|
| Where your family lives | If your spouse and kids are in SA, that’s a strong signal that SA is your real home |
| Where your permanent home is | Do you own or rent a home in SA that’s available for you to use? Or have you sold up and moved? |
| Where your personal belongings are | Furniture, car, clothes still in SA? Or have you shipped everything overseas? |
| Your financial interests | Where are your main bank accounts, investments, and business interests? |
| Your social ties | Gym memberships, club memberships, church, kids’ schools. Active SA ties suggest SA is still home. |
| Your visa status abroad | Permanent residency abroad is stronger evidence than a temporary work visa |
| How often you visit SA | Coming back every December for a few weeks is fine. Spending months at a time undermines your non-residency claim. |
| Your intention | Do you plan to return to SA? Or is your move permanent? This is the most important factor. |
The key word here is intention. SARS looks at whether you intend to return to South Africa. But your intention on its own isn’t enough. Your actions need to back it up. If you say you’ve left permanently but you still own a house in Sandton, your kids go to school in Cape Town, and you spend four months a year in SA, SARS is going to have a hard time believing you.
Can You Be Ordinarily Resident Even If You Live Abroad?
Yes. This is what catches most people. You can live in London for five years and still be ordinarily resident in South Africa if SARS believes SA is still your “real home.” The amount of time you spend outside the country is not the deciding factor for this test. What matters is your ties, your intentions, and your overall pattern of life.
This is exactly why so many South African expats who’ve been abroad for years are still technically tax residents. They never told SARS they left, they still own property in SA, they visit often, and they tell everyone they plan to “come back someday.” In SARS’s eyes, that’s an ordinarily resident person who happens to be travelling.
The Physical Presence Test (The Day-Count Test)
If SARS determines that you’re not ordinarily resident in South Africa, they apply a second test. This one is purely mathematical. It counts how many days you’ve physically been in South Africa.
You’re a tax resident under this test if you meet all three of these requirements:
| Requirement | Days needed | Period |
|---|---|---|
| Requirement 1 | More than 91 days | In the current tax year |
| Requirement 2 | More than 91 days in each year | In each of the 5 preceding tax years |
| Requirement 3 | More than 915 days total | Across those 5 preceding tax years |
You must meet all three. If you fail even one, you don’t qualify as a resident under this test.
How Days Are Counted
A part of a day counts as a full day. So if you land at OR Tambo at 23:55 on a Friday night, that entire Friday counts as one day of physical presence. The same applies to departure days.
The South African tax year runs from 1 March to 28/29 February. So when counting days for the current tax year, you’re counting from 1 March to 28 February.
The 330-Day Exit Rule
If you become a resident through the physical presence test but then leave South Africa for a continuous period of at least 330 full days, you stop being a resident. Your residency is deemed to have ended from the day you left SA.
This only works if you were a resident under the physical presence test. If you were ordinarily resident, the 330-day rule doesn’t apply to you. You’d need to go through the formal cessation process instead. For the step-by-step process, see our guide to ceasing tax residency in South Africa.
The South African Tax Residency Test and Double Taxation Agreements
There’s a third way your residency can be determined. If South Africa has a Double Taxation Agreement (DTA) with the country you live in, the DTA contains “tie-breaker” rules that decide which country gets to call you a resident when both countries want to claim you.
The tie-breaker rules typically look at:
- Where is your permanent home? If you have a permanent home in only one country, that country wins.
- Where is your centre of vital interests? This means where your personal and economic ties are strongest. Family, job, social life, investments.
- Where do you habitually live? If ties are equal in both countries, which one do you spend more time in?
- What is your nationality? If everything else is equal, your nationality can be the final decider.
If the DTA determines you’re exclusively resident in the other country, you’re not considered a South African tax resident even if you’d otherwise pass the ordinarily resident or physical presence tests. You’ll need a tax residency certificate from the foreign country as proof.
South Africa has DTAs with over 79 countries. For the full list and how they work, see our guide to South Africa’s Double Taxation Agreements.
Real-Life Scenarios: Am I a Tax Resident?
Scenario 1: Moved to London 3 Years Ago, Never Told SARS
Situation: You moved to the UK in 2023. You have a permanent job there, you rent a flat, your partner lives with you. You still own a house in Durban (rented out) and visit SA for Christmas every year. You never updated your SARS status.
SARS view: You’re still a tax resident. You meet the ordinarily resident test because you still have significant ties to SA (property, visits), and you never formally informed SARS that you left. SARS has no reason to consider you a non-resident.
What to do: If you want to stop being taxed on worldwide income, you need to formally cease residency. Until then, you should be filing SARS returns and declaring your UK income under the R1.25 million exemption.
Scenario 2: Left SA as a Student, Never Came Back
Situation: You left SA at 22 to study abroad. You’re now 30, living in Australia, working full-time, no property in SA, no family there, you haven’t been back in 4 years.
SARS view: You’re probably not ordinarily resident anymore, and you likely fail the physical presence test too. But if you never told SARS, their system still shows you as a resident.
What to do: Formalise your status by updating the RAV01. You may be able to backdate the cessation to when you left. Since you’ve been gone for more than 3 years, you could also access your retirement annuity immediately once the cessation is confirmed.
Scenario 3: Work on a Ship, Spend 2 Months in SA Per Year
Situation: You work on an international cruise ship. You spend about 60 days in SA per year on leave. You don’t own property abroad. Your family lives in SA.
SARS view: You’re likely ordinarily resident because your family is in SA and you return there between contracts. Even though you spend most of the year at sea, SA is your “real home.” The physical presence test doesn’t even need to be applied because you already pass the ordinarily resident test.
What to do: You’re a tax resident. Declare your worldwide income, and claim the R1.25 million foreign employment income exemption if you meet the 183/60-day requirement.
Scenario 4: Dual Resident (Both SA and UK Claim You)
Situation: You live in the UK, pay UK tax, and HMRC considers you a UK resident. But you still have a house in SA, your parents live there, and you visit for two months every year. SARS also considers you a resident under the ordinarily resident test.
SARS view: You’re a dual resident. Both countries claim you. This is where the UK-SA DTA kicks in. The tie-breaker rules look at where your permanent home is, your centre of vital interests, and your habitual abode. If the DTA determines you’re exclusively UK-resident, SARS must release you.
What to do: Get a UK tax residency certificate from HMRC and submit it to SARS as part of the cessation process.
The South African Tax Residency Test Does NOT Care About
Some things people think matter for the South African tax residency test that actually don’t:
Your citizenship. Having a South African passport doesn’t make you a tax resident. Tax residency and citizenship are completely separate. You can be a SA citizen and a non-resident, or a foreign citizen and a SA tax resident.
Your immigration status abroad. Having a UK visa, Australian PR, or a UAE residency permit doesn’t change your SARS status. SARS uses its own tests.
Where you pay tax. Paying tax in another country doesn’t automatically make you a non-resident of South Africa. You could be a tax resident in both countries at the same time (dual resident), and the DTA would need to sort it out.
How long you’ve been gone. Being absent for years doesn’t end your ordinary residency. If SARS believes SA is still your real home (based on the factors above), time away doesn’t help. You need to take active steps to change your status.
What Happens Once Your Residency Status Is Determined
If you’re a tax resident, SARS taxes you on your worldwide income. You can claim the R1.25 million foreign employment income exemption and foreign tax credits under Double Taxation Agreements to avoid paying twice.
If you’re a non-resident, SARS only taxes you on SA-source income (rent, interest, dividends, capital gains on SA property). Your foreign income is completely outside SARS’s reach.
If you want to change from resident to non-resident, you need to go through the formal cessation process with SARS. This triggers exit tax on your worldwide assets and starts the 3-year clock for retirement fund access. Our guide to ceasing tax residency walks through every step.
This guide is for information only and does not constitute tax advice.
Tax residency is determined on a case-by-case basis. Always consult a qualified tax professional for advice on your specific situation.