South Africa retired person’s visa 2026: the R37,000 income requirement, couples, and how a US life annuity qualifies
Written by Hans Goldstein, licensed insurance agent · CA 4273294Short answer: South Africa’s retirement visa, the retired person’s visa under section 20 of the Immigration Act, requires proof of R37,000 a month (about $2,211 at the ECB rate of 2 October 2026) for the rest of your life from a pension, an irrevocable annuity or a retirement account, or a net worth whose assets realise the same amount each month. Home Affairs publishes one figure per applicant; a spouse and children receive an accompanying visa, and no separate couple amount is published. The Act names an “irrevocable annuity” paying for life, so a life-only SPIA bought while you still live in the US fits the wording directly: at 62, about $335,000 to $380,000 of premium buys $2,211 a month (illustrative, September 2026 rates). The visa runs up to four years and is renewable, and section 27(e) offers permanent residence to retirees on the same kind of income.
Free guide: Moving abroad on a fixed income
Income rules and taxes by country: Norway, Switzerland, Sweden, Italy, Spain, Malta and more, plus how a lifetime annuity fits.
The South Africa retired person’s visa requirement in 2026
If you want to retire in South Africa, the retired person’s visa is the standard route. Section 20(1) of the Immigration Act 13 of 2002, as amended, lets the Department of Home Affairs (DHA) issue it to a foreigner who intends to retire in South Africa and proves either:
- (a) “the right to a pension or an irrevocable annuity or retirement account which will give such foreigner a prescribed minimum payment for the rest of his or her life from the country of his or her origin”; or
- (b) “a minimum prescribed net worth.”
Regulation 19 of the Immigration Regulations 2014 leaves the amount to a ministerial notice in the Gazette, and defines the net worth route as “a combination of assets realising, per month,” the same amount. DHA’s visa page states the figure: “this amount is currently set at R37 000,00,” for both the payment and the net worth. I found no notice changing it in 2024 to 2026; confirm the current figure with the consulate when you file.
| Item | Requirement | Source |
|---|---|---|
| Lifetime income route | Pension, irrevocable annuity or retirement account paying at least R37,000 a month for life | Immigration Act s.20(1)(a); reg. 19(2); DHA |
| Net worth route | A combination of assets realising R37,000 a month | s.20(1)(b); reg. 19(3); DHA |
| Other documents | Police clearance from each country lived in 12 months or more since 18, medical and radiology reports, proof of medical cover, passport, photos, fee | Reg. 19(1), reg. 9; DHA |
| Spouse and children | “May be issued with an appropriate visa” | s.20(1A) |
| Validity | Up to four years, renewable one or more times | s.20(3) |
| Work | Only if Home Affairs authorises it, on its terms | s.20(2) |
| Processing (applied inside South Africa) | About 120 working days; permanent residence under s.27(e) about 240 | DHA turnaround times |
There is no minimum age in the Act. You apply in person at a South African embassy or consulate abroad, or at a Home Affairs office if you are already lawfully in the country.
Single or married: how much income you need for the South Africa retirement visa
The rand floats, so the dollar figure moves. I convert at R16.73 per US dollar, the European Central Bank reference rates for 2 October 2026 (EUR/ZAR 18.7839 divided by EUR/USD 1.1225).
| Household | Monthly amount (ZAR) | About (USD) | Who must receive it |
|---|---|---|---|
| Single applicant | R37,000 | $2,211 | The applicant, for life, or assets realising it |
| Married couple | No separate couple figure published | Plan on at least $2,211 | The main applicant; the spouse receives an accompanying visa under s.20(1A) |
| Each dependent child | No amount published | None stated | Accompanying visa; parental consent and birth papers |
Neither the Act, the regulations nor the DHA page says whether R37,000 is per person or per household, or whether two spouses may add two incomes together. In practice the spouse with the qualifying income applies and the other accompanies, but ask the consulate in writing before you size anything, and if your spouse may one day need a visa in their own right, plan income in each name.
When only one spouse has the income
The spouse whose pension or annuity reaches R37,000 files as the retired person and the other files as the accompanying spouse with a marriage certificate. If neither has enough, the fix is a lifetime annuity owned by and paying the spouse who will apply, bought while you both still live in the US. A joint and survivor payout keeps the income going to the other spouse after the first death, which matters at renewal. A woman’s payout per dollar is lower, so the same income on her life costs a little more (see the example below).
US gift note (general information, confirm with a tax adviser): if the premium comes from the other spouse’s money, moving it into an annuity owned by the applicant spouse is a gift between spouses. Between two US-citizen spouses, gifts are unlimited under the marital deduction. If the receiving spouse is not a US citizen, the 2026 annual exclusion is $194,000 (Rev. Proc. 2025-32); above that you file Form 709, and tax is generally not due because the excess uses part of the lifetime exemption.
Why a US life annuity fits South Africa so well
Most retirement visas ask for “income” and leave you to argue about what counts. South Africa’s Act names the product. Section 20(1)(a) lists a pension, an irrevocable annuity or a retirement account that pays “for the rest of his or her life from the country of his or her origin.” A life-only single premium immediate annuity (SPIA) from a US insurer is irrevocable, pays for life and pays from the US. The renewal form uses the same words: proof of payment “from a pension fund or an irrevocable retirement annuity or a net worth.”
The Act, the regulations and the DHA page do not require you to transfer the money into South Africa, and they do not spell out the exact letter. Ask the insurer for a letter on letterhead stating the monthly amount, that payments are irrevocable and continue for the lifetime of the annuitant, plus recent payment statements.
Which annuity counts
What fits the words “for the rest of his or her life”: a life-only SPIA, a life with cash refund SPIA, a joint and survivor SPIA, or an existing deferred annuity or MYGA converted to lifetime payments. What does not read as lifetime income: a 10-year or 20-year period-certain annuity, an income rider (GLWB) where an account value can still be cashed out, or a deferred annuity still accumulating. Those are savings, and savings only help through the net worth route, which is my reading of the text rather than a DHA statement.
The net worth route, honestly
South Africa is unusual in giving a real savings alternative: “a combination of assets realising” R37,000 a month. DHA does not publish how it tests that (what yield it assumes, or whether drawing down principal counts), so a large portfolio may qualify, but the burden is on you to show monthly realisations. A lifetime annuity answers the question in one document and does not depend on markets at renewal. Many applicants will mix the two: Social Security plus a smaller annuity under the lifetime route.
Why I write about this. My mom is Norwegian, my dad is American, and they’re planning the move from the US to Norway. My mom is the sponsor (the host, or “reference person” in UDI’s words), so Norway’s income test falls on her income, not my dad’s. UDI told us in writing that money in an account does not count as income, and only lifelong income does. Their savings were not the problem; the paperwork wanted a monthly number in the host’s name. The rules in South Africa are different, but the problem is the same one many retirees hit: the income test, not the net worth. I’m writing this to help others in the same boat as my parents. Read how we worked through the Norway income requirement.
In the same boat? Let’s run your numbers
See roughly what a lifetime annuity would cost to close your income gap, then get my personal read by email. I can help while you still live in the US.
Estimates use the September 9, 2026 ImmediateAnnuities.com payout survey (life only) and a 15% cushion. Illustrative, not a quote.
Example: a 62-year-old American moving to South Africa
Premium = monthly target / payout per $100,000 x $100,000. At 62 the ImmediateAnnuities.com survey of September 9, 2026 (life-only, per $100,000 a month) averages $603 for a man and $582 for a woman; the best quotes were $660 and $637. Rounded to the nearest $1,000. Illustrative, not a quote. Because the rand floats, I show the bar with 15% headroom too.
| Household, age 62 | Monthly target | Premium, average rate | Premium, best rate |
|---|---|---|---|
| Single man | $2,211 (R37,000) | $367,000 | $335,000 |
| Single woman | $2,211 | $380,000 | $347,000 |
| Single man, 15% headroom | $2,550 | $423,000 | $386,000 |
| Couple, annuity on her life, 15% headroom | $2,550 | $438,000 | $400,000 |
Social Security changes the math. It can start at 62, it is a pension from your country of origin, and a retiree whose own benefit is $1,500 a month only needs to fill about $711 (about $118,000 of premium for a 62-year-old man at the average rate). The annuity is for people who retire before claiming, who delay Social Security toward 70 for the bigger check, or whose benefit falls short.
For a couple, a joint and survivor annuity keeps paying the surviving spouse, but it pays less per dollar than single life, so the premium runs above the table; get a quote for both.
Why the headroom
The test is in rand and your annuity pays dollars. If the rand strengthens, the same dollar payment is worth fewer rand at renewal, and the Minister can raise the figure by notice. Sizing 10 to 25% above today’s conversion protects the four-year renewal.
How to set it up
- Buy while you still have a US address. US insurers generally will not issue a new contract to someone already living abroad.
- Choose life-only (or life with cash refund) wording, no commutation or cash-out rider. The letter should say payments are irrevocable and continue for the lifetime of the annuitant.
- Keep a US bank account for the deposits. It keeps transfers simple. It does not change withholding: since January 1, 2026, a US citizen with a foreign residence address cannot opt out of federal withholding on annuity payments, even if they go to a US account (IRC 3405(e)(13), Treas. Reg. 31.3405(e)-1). Withholding is a prepayment of your US tax, not an extra tax.
- Start payments 3 to 12 months before you apply. Statements showing real deposits make the file easy to read.
- Gather the rest early. FBI police clearance, medical and radiology reports and proof of medical cover take time; follow the consulate’s apostille and certification instructions.
- Renew before the four years run out with fresh payment proof, or apply for permanent residence (below).
Permanent residence for retirees: section 27(e)
Section 27(e) lets Home Affairs grant a permanent residence permit to a foreigner of good and sound character who intends to retire in South Africa and proves “the right to a pension or an irrevocable annuity or retirement account which will give such foreigner a prescribed minimum payment for the rest of his or her life,” or a minimum prescribed net worth. Regulation 24(11) again leaves the amount to a Gazette notice; DHA’s permanent residence page does not print it, so confirm the figure (many practitioners assume the same R37,000) before you apply. DHA lists about 240 working days for these applications.
How the annuity is taxed: South Africa and the US
The US side (the same wherever you live)
As a US citizen you stay taxable on worldwide income wherever you live. A US single premium immediate annuity bought with after-tax savings is taxed under IRC 72: an exclusion ratio makes part of each payment a non-taxable return of your premium until the premium is recovered. If you bought it with IRA money, every payment is taxable. The foreign earned income exclusion does not cover annuities (IRC 911(b)(1)(B)(i)). Foreign tax on the payments can generally be credited on Form 1116. Since January 1, 2026, a US citizen with a foreign residence address cannot opt out of federal withholding, even if payments go to a US account (IRC 3405(e)(13), Treas. Reg. 31.3405(e)-1). Withholding is a prepayment, not extra tax. An annuity from a US insurer is not reported on FBAR or Form 8938, and it is not a PFIC. See the exclusion ratio for Americans abroad and the exclusion ratio calculator.
The US and South Africa tax treaty
Yes, there is one: the convention signed in Cape Town on 17 February 1997, generally effective from 1 January 1998. Article 18(3) covers annuities: they are “taxable only in” the country where you live “unless the annuity was purchased in the other Contracting State while such person was a resident of that other State, in which case the annuity may also be taxed in that other State.” An annuity bought in the US while you lived there can therefore be taxed by both countries. Article 1(4), the saving clause, lets the US tax its citizens as if the treaty did not exist, and Article 1(5)(a) does not exempt Article 18(3) from it. Article 23 is the relief: South Africa credits the US tax a non-citizen would owe under the treaty, the US credits the remaining South African tax, and Article 23(2)(c) treats the income as arising in South Africa “to the extent necessary to avoid double taxation.” Social Security is different: Article 18(2) leaves it taxable only in the US.
The South Africa side
South African residents are taxed on worldwide income (Income Tax Act, s.1, “gross income”). You generally become resident by being “ordinarily resident” or under the physical presence test. For the 2027 tax year (1 March 2026 to 28 February 2027) SARS rates run from 18% to 45%, with a primary rebate of R17,820 (R9,765 more at 65, R3,249 more at 75); no tax is due below R99,000 of taxable income under 65 or R153,250 at 65 and over.
- Your annuity: section 10A exempts the “capital element” of a purchased annuity (premium divided by the expected total payments), much like the US exclusion ratio. The wording refers to an insurer and a lump sum, but SARS has not published whether a US insurer’s contract qualifies. Get a South African tax adviser’s written view; if it does not, the whole payment is taxable.
- Social Security: section 10(1)(gC) exempts amounts under another country’s social security system, so US Social Security is not taxed in South Africa.
- Size of the bill: R37,000 a month is R444,000 a year. If it were fully taxable, a resident under 65 would owe about R81,000 (about 18%) before any section 10A exclusion.
Net result
South African tax is usually the binding one on a purchased annuity, because its rates are higher than the US tax on an exclusion-ratio annuity; the US then credits it. Compared with living off savings principal, which is not income in either country, the annuity costs more in tax here, unless section 10A applies. Social Security is the tax-friendly piece, taxed only in the US. Leaving South African residence later can trigger a deemed disposal of your assets (an exit charge), so plan the exit too.
Does South Africa have a wealth tax?
No. PwC’s country summary says South Africa levies no net wealth tax. It does have estate duty: SARS charges 20% on the first R30 million of a resident’s estate and 25% above that, after a R3.5 million basic deduction, and donations tax at the same rates above R150,000 a year (gifts between spouses are exempt). A life-only annuity stops paying at death, so there is usually little left to tax; ask a South African adviser how a cash refund or joint and survivor feature is treated.
The trade-offs, once
A SPIA is irrevocable: you trade a lump sum for income you cannot cash out. Payments are level unless you add a cost-of-living rider, so their buying power falls over time, and the rand-dollar rate moves both ways. Payouts are lower at younger ages, so a 62-year-old pays more for the same monthly amount than a 70-year-old. The income is backed by the issuing insurer’s claims-paying ability. For most people the answer is to size the annuity to the requirement plus some headroom and keep the rest of the portfolio working. Home Affairs decides every application on its own merits; a well-documented lifetime income makes the file strong, but no one can promise approval.
Married? Make the income outlive either of you. In South Africa the main applicant shows the income and the spouse joins as a family member, so the annuity sits with the main applicant. If a single-life annuity is on one spouse and that spouse dies first, the payments stop, and the surviving spouse may have to show income of their own at the next renewal. A joint and survivor annuity, which keeps paying until the second death, or a separate annuity on each spouse closes that gap. Joint and survivor pays less per dollar than single life, so ask for both quotes and compare.
Frequently asked questions
Free annuity gap analysis for South Africa. Tell me your ages, your Social Security or pension, and whether you are single or a couple. I will show how far your income is from the South Africa requirement and what a lifetime annuity would cost to fill the gap, in the sponsor’s or main applicant’s name where that matters.
Related reading
- Moving abroad on a fixed income: hub
- Retirement visa income requirements compared
- Using an annuity to meet a visa income requirement
- Mauritius retirement permit income
- The exclusion ratio for Americans abroad
- Immediate annuity calculator
Sources
- Immigration Act 13 of 2002, as amended (DHA consolidation): sections 20 and 27(e)
- Immigration Regulations 2014, as amended 2018: regulations 9, 19 and 24
- Department of Home Affairs: types of visas (retired person's visa, R37,000)
- Department of Home Affairs: permanent residency
- Department of Home Affairs: turnaround times for visas and permits
- US and South Africa income tax convention (1997): Articles 1, 18 and 23
- SARS: rates of tax for individuals (2027 tax year)
- SARS: estate duty and donations tax
- Income Tax Act 1962, section 10A: capital element of purchased annuities
- Income Tax Act 1962, section 10(1)(gC): foreign social security
- PwC Worldwide Tax Summaries: South Africa, other taxes
- PwC Worldwide Tax Summaries: South Africa, residence
- European Central Bank: euro foreign exchange reference rates (2 October 2026)
- IRS: 2026 inflation adjustments, including the gift exclusion for a non-citizen spouse (Rev. Proc. 2025-32)
- IRS: United States income tax treaties, A to Z
- 26 U.S.C. 3405 (withholding on pensions and annuities)
- ImmediateAnnuities.com: immediate annuity rates by age (survey of September 9, 2026)
Goldstein & Co. LLC dba Goldstein Insurance Services · Hans Goldstein, licensed insurance agent, CA lic. #4273294 · NPN 20602398 · 213-414-2808 · hans@hansgoldstein.com
Education, not tax, legal or immigration advice. Rules, thresholds and exchange rates change; confirm with the consulate or immigration authority and a local tax adviser before you act, and get answers in writing. Hans Goldstein is a licensed insurance agent (CA 4273294) and can only offer annuities to residents of states where he is licensed. Annuity payments are guaranteed by the issuing insurer’s claims-paying ability, not by any government. Payout figures are illustrations from a published survey, not quotes. Immediate annuities are generally irrevocable.