Why South Africans Are Choosing Spain
South Africa has long had one of the highest emigration rates of any middle-income country, and Spain has emerged as one of the most attractive European destinations for South African expats. The reasons are numerous: South Africa and Spain share a similarly warm, Mediterranean-type climate in many regions; Spanish culture — the food, the outdoors lifestyle, the family-oriented values — resonates with many South Africans; and Spain’s safety, infrastructure, and quality of life represent a step change from the challenges many South Africans face at home.
Spain is also increasingly accessible from a visa perspective. The Non-Lucrative Visa provides a clear, well-documented pathway for South Africans with investment income, rental income, retirement annuities, or savings to build a legal life in Spain. Many South Africans have completed the process successfully — and this guide will show you exactly how to do the same.
There is one critical difference that sets South African applicants apart from many other nationalities: South Africa’s exchange control regulations govern how much money you can move out of the country. Understanding these rules is essential before you plan your move.
The Non-Lucrative Visa: Your Primary Route to Spain
South African citizens are not EU nationals and therefore require a long-stay visa to live in Spain beyond the 90-day Schengen tourist allowance. For South Africans who wish to retire in Spain or live there on passive income without working for a Spanish employer, the Non-Lucrative Visa (NLV) is the appropriate route.
The NLV is issued for one year initially and is renewable for two-year periods thereafter. After five years of continuous legal residency, you can apply for long-term EU residence. The visa does not permit work for Spanish employers or Spanish-source clients.
NLV income requirements in 2026
In 2026 the minimum income thresholds are approximately:
- Primary applicant: €2,400 per month (approximately ZAR 47,000–50,000 per month at current exchange rates), or €28,800 per year
- Each dependent: €600 per month
The rand-to-euro exchange rate is a critical variable. At the time of writing (mid-2026), the rate is approximately ZAR 19–21 per euro. This means the primary applicant income requirement translates to ZAR 45,000–50,000 per month, which is achievable for many South Africans with retirement annuities, pension fund drawdowns, investment portfolios, or rental income from South African property. However, currency movement means you should always check the current rate and calculate in euros.
South African Income Sources That Count for the NLV
Spanish consulates accept a range of passive income sources from South African applicants:
Retirement annuities and pension funds
South African retirement annuity fund (RA) or living annuity payments are accepted. You will need a letter from the fund administrator confirming your monthly payment amount. Note that once you formally cease South African tax residency (see below), withholding tax arrangements on these payments change.
Investment portfolio income
Income from unit trusts, shares, ETFs, or structured investment products held at South African investment platforms (Allan Gray, Coronation, Sanlam, etc.) is accepted. Dividend income statements and portfolio valuations are the standard documentation.
Rental income from South African property
If you own rental property in South Africa, the rental income can count toward your NLV income threshold. You will need lease agreements and bank statements showing rental deposits.
Offshore investments
If you have already moved funds offshore (see exchange control section below), income from offshore investment platforms also counts.
Savings in South African or international bank accounts
Spanish consulates also accept evidence of a lump sum in savings equivalent to the annual income requirement, though demonstrating regular income flows is generally more persuasive. Bank statements (typically the last three to six months) showing consistent balances are the standard.
Moving Money Out of South Africa: SARB Exchange Controls
This is the section that surprises many South Africans planning a move to Spain. South Africa maintains strict exchange control regulations administered by the South African Reserve Bank (SARB), which govern how much money South African residents can move abroad. Understanding these rules is not optional — breaching them carries serious financial and legal consequences.
The Single Discretionary Allowance (SDA)
Every South African resident aged 18 and over can transfer up to ZAR 1,000,000 per calendar year offshore without SARS tax clearance or SARB approval, using their Single Discretionary Allowance. This can be used for any purpose — foreign investments, living costs abroad, property purchases, etc. You simply instruct your bank to make the transfer (using your SDA) and it processes normally. No application or approval is needed for amounts within this limit.
The Foreign Investment Allowance (FIA)
Above ZAR 1,000,000 (and up to ZAR 10,000,000 per calendar year), South African residents can transfer funds offshore using their Foreign Investment Allowance. This requires a Tax Compliance Status (TCS) Pin from SARS confirming you are tax compliant. You apply for the TCS Pin through the SARS eFiling portal and once received, provide it to your authorised dealer (bank or foreign exchange provider) who will process the transfer. The FIA is specifically for investment purposes abroad.
Financial emigration vs formal emigration
Since 2021, the concept of “formal financial emigration” through the Reserve Bank was discontinued. South Africans now simply cease tax residency through SARS (see below) — there is no longer a separate Reserve Bank financial emigration process. However, once you cease tax residency with SARS, you become a non-resident for exchange control purposes, and the SDA and FIA allowances no longer apply. As a non-resident, you can transfer your funds freely — but you first need SARS to formally confirm your non-resident status.
Practical approach for most South Africans moving to Spain
For most people, the practical approach is:
- Use the SDA (ZAR 1m) and FIA (up to ZAR 10m, with TCS Pin) to move your initial capital and investment funds to Spain or an offshore account before ceasing tax residency
- Maintain South African-source income flows (rental income, RA payments) into a South African account
- Transfer regular living costs to your Spanish account monthly using Wise, OFX, or your bank’s international transfer service
- Once you have established Spanish residency and confirmed your NLV status, formally notify SARS to cease your South African tax residency
The order of operations matters here. Do not formally cease tax residency before you have moved the funds you need, as the process is complicated to reverse.
Best transfer services
For ongoing ZAR-to-EUR transfers, Wise (formerly TransferWise) offers very competitive rates and is widely used by South African expats. For larger one-off transfers, specialist South African foreign exchange brokers (such as Sable International, Rand Rescue, or Global Reach) typically offer better rates than the major banks and can assist with the TCS Pin and FIA processes.
SARS and Ceasing South African Tax Residency
South Africa uses a residence-based tax system, meaning South African tax residents pay SARS tax on their worldwide income. Once you move to Spain and spend the majority of your time there, you will likely also become a Spanish tax resident (after 183 days per calendar year in Spain).
To avoid being taxed by both South Africa and Spain on the same income, you should formally notify SARS that you have ceased South African tax residency. This is done by submitting a tax return with SARS indicating your date of departure and cessation of residency, and by providing evidence of your new Spanish residency.
The exit tax (deemed disposal)
When you cease South African tax residency, SARS deems you to have disposed of all your worldwide assets on the date of cessation. Capital gains tax (CGT) is then payable on the accrued gains in those assets, calculated as if you sold everything at market value on that date. This is the “exit tax.” The CGT rate for individuals applies (the inclusion rate of 40% of the gain, then taxed at your marginal IRPF rate). Careful planning around the timing of your tax residency cessation and the composition of your portfolio can minimise this liability.
The South Africa-Spain double taxation agreement
South Africa and Spain do have a Double Taxation Agreement (DTA) in force. The agreement provides mechanisms to prevent double taxation on most income types. However, the DTA is less comprehensive than some other bilateral agreements, and certain types of income may still face withholding obligations in South Africa even after you become a Spanish tax resident. Working with a tax advisor who understands both systems is essential.
The foreign income exemption
Prior to formally ceasing South African tax residency, South African tax residents who earn employment income from abroad may be able to use the Section 10(1)(o)(ii) foreign income exemption (the first ZAR 1,256,900 of foreign employment income is exempt from South African tax per year, as of 2025/26). However, this exemption applies specifically to employment income earned abroad — not to passive income like pensions or investment income. It is also not relevant to NLV holders who are not working.
The NLV Application Process for South Africans
South African citizens apply for the NLV at the Spanish consulate with jurisdiction over their area of residence. There is a Spanish consulate in Johannesburg and a consulate general in Cape Town.
Document checklist
- Valid South African passport (minimum 12 months validity beyond intended stay)
- NLV application form (consulate-specific)
- South African Police Service (SAPS) criminal record certificate (apostilled by the South African Department of International Relations)
- Medical certificate confirming no contagious diseases (apostilled)
- Proof of income (RA fund letters, investment portfolio statements, bank statements, rental income evidence)
- Private health insurance policy valid in Spain (no copayments, annual or longer duration)
- Proof of accommodation in Spain (lease agreement or property deed)
- Two passport photographs
- Government fee payment
Documents in English do not require translation into Spanish (South Africa’s official English documents are generally accepted). However, documents in Afrikaans or other South African languages require sworn Spanish translations.
Arriving in Spain: First Steps
Within 30 days of arriving in Spain on your NLV:
- Empadronamiento: Register your address at the local ayuntamiento with your passport, visa, and lease or property deed
- TIE application: Apply for your Tarjeta de Identidad de Extranjero at the local police station or foreigners’ office — this is your residence card
- NIE number: Issued as part of your TIE, this is your Spanish tax identification number needed for all financial and legal transactions
- Spanish bank account: Open with your passport, TIE/NIE, and padrón certificate
- Transfer initial funds: Using Wise or your chosen transfer service to fund your Spanish account
Driving licence
South African driving licences are not automatically exchangeable for Spanish licences — there is no bilateral agreement between South Africa and Spain. Within six months of becoming a Spanish resident, you must apply for a Spanish driving licence, which requires passing both a written theory test and a practical driving test. Both are conducted in Spanish (though some driving schools offer tuition in English). Budget approximately €800–€1,500 for the process.
Popular Destinations for South Africans in Spain
South African expats in Spain tend to cluster in areas with established English-speaking communities and good weather:
- Costa del Sol (Málaga province): Marbella, Fuengirola, Nerja, and surrounding areas have growing South African communities. The climate, lifestyle, and outdoor culture feel familiar to many South Africans.
- Alicante and the Costa Blanca: Increasingly popular for its combination of lower costs than the Costa del Sol, a large established expat community, and excellent weather.
- Madrid: A smaller but growing South African professional community in the capital, primarily among those with work connections or families.
South African expat Facebook groups and WhatsApp communities are active across all these areas and are an excellent resource for local knowledge, recommendations for services, and social connections before and after your move.
Shipping from South Africa to Spain
Sea freight from Durban or Cape Town to Spanish ports (Valencia, Barcelona, or Algeciras near Málaga) takes approximately 3–4 weeks. Less-than-container loads (LCL) for a typical household cost approximately ZAR 40,000–80,000 depending on volume and route. Full container loads (FCL) cost ZAR 70,000–130,000. South African international removal specialists (Crown Relocations, Santa Fé, Stuttafords) have established Spain routes. Remember that under SARB exchange controls, the physical export of household goods is governed by customs regulations rather than exchange controls — your removal company will handle the necessary documentation.