Thousands of foreigners are flocking to South Africa to retire, here’s where they’re coming from

Source: Businesstech, 18/07/2023

Thousands of foreign nationals have chosen South Africa as their retirement destination, with many of them leaving some notable first-world countries such as the United Kingdom, China, Germany, and the United States of America.

During a parliamentary Q&A in June, the minister of Home Affairs was asked to furnish the total number of retirement visa applications that were received and approved, as well as what countries these applicants come from.

In response, the department said South Africa had received around 3,645 retirement visa applications over the past two years from foreigners residing in 112 countries.

Despite these five countries being the top feeders, there were some notable applications from other European countries â€` some considered the best in the world â€` such as Switzerland (150), the Netherlands (124), and Sweden (27).

Why they’re choosing South Africa

Despite South Africa’s many challenges, such as load shedding, high crime rates, and poor governance, it’s still considered a very attractive retirement destination for foreigners â€` especially the Western Cape, which has seen strong demand for property by foreign buyers in recent years.

One of the main reasons why these immigrants choose South Africa as their chosen retirement destination is because their euros and dollars afford them a better lifestyle and a cheaper cost of living.

Other reasons include the warm climate and picturesque landscapes and beaches on offer, which provide a very attractive living environment for retirees.

According to economist Dawie Roodt, the fact that foreign retirees are choosing South Arica is a very good sign, especially for the economy.

“These individuals are effectively long-term tourists, leading to an increased inflow of capital, and this also supports the exchange rate of the rand,” he said in an interview with SABC News.

Roodt added that South Africa should encourage more of these types of visas and stressed that Home Affairs needs to do better, as the current turnaround for retirement visas is a dismal 12 months.