Since 1995, if you’re a South African who wanted dual nationality, you’ve had to apply to the Department of Home Affairs to retain your South African citizenship before accepting the citizenship of another country. If you didn’t, according to the South African Citizenship Act, 88 of 1995, you would immediately have your South African citizenship withdrawn.

However, on 6 May 2025, the Constitutional Court of South Africa (SA) confirmed an earlier 2023 Supreme Court of Appeal ruling that it is unlawful to strip South Africans of their citizenship simply because they acquired citizenship of another country. This decision overturns the 1995 provision in the South African Citizenship Act and has major implications for you, if you want dual citizenship.

Dual citizenship

The Constitutional Court ruling makes the Citizenship Act invalid from its promulgation on 6 October 1995, meaning that the ruling has a retrospective application. Part of the ruling is that any citizens who lost their citizenship by virtue of the 1995 Act are now deemed not to have lost their citizenship. So, if you lost your citizenship after 6 October 1995 because you accepted dual nationality without obtaining prior permission to retain your South African citizenship, you are now legally recognised as a South African citizen again.

The Department of Home Affairs has announced that it will launch an online portal before the end of 2025 to help you if you need to confirm that your citizenship has been reinstated. If your South African passport expired because your citizenship was withdrawn under these circumstances, you can apply to renew it at a participating Nedbank branch.

Financial and tax implications for dual citizens

SA’s tax laws apply to dual citizens, whether they were originally South African citizens, or foreign nationals who have acquired South African citizenship through residence or naturalisation while retaining their original citizenship. The guiding principle is a residence-based taxation system, which means that your status as resident or non-resident, rather than where you physically earn your income, determines how the South African Revenue Service (SARS) will tax you.

If you’re a resident, you’re taxed on your income in SA regardless of where it’s earned. If you’re considered a tax resident in SA – including dual citizens – you're taxed on your worldwide income. As a dual citizen, you’re required to declare and pay tax on your income earned both within SA and abroad.

Since SA operates on a worldwide tax system, dual citizens need to report all income from foreign sources accurately, including salaries, rental income, dividends, interest, capital gains, pensions, and any other form of income. Importantly, this includes foreign assets like overseas bank accounts, properties, investments, or businesses.

All South African financial institutions, including Nedbank, must report to SARS whether you have tax obligations or tax residencies outside SA, under the Foreign Account Tax Compliance Act and Common Reporting Standards. This applies to financial institutions across many countries around the world, who must also report this to their respective revenue authorities. SARS will exchange this information with these other revenue authorities.

Dual citizens must declare all their foreign assets and income to SARS and pay any taxes that apply. Failure to disclose foreign assets could result in penalties or legal consequences – SA has strict rules regarding tax compliance for all residents, including dual citizens. It is important to consult a professional tax adviser to ensure you’re compliant with South African tax laws and reporting requirements, to avoid any potential issues.

However, the worldwide tax system does include some relief for you as a dual citizen.  SA has tax treaties or agreements with other countries to prevent double taxation that usually state which country has the primary right to tax specific types of income. As a dual citizen, you should take advantage of these tax treaties to avoid paying taxes on the same income in 2 different countries.

But remember – it’s your responsibility to understand your tax obligations and comply with them. This is not always a simple task for the layperson – a tax adviser will help you ensure compliance with the tax laws of both countries, to avoid any penalties or legal consequences.

If you’re uncertain about your rights and obligations regarding dual citizenship, seek professional advice from a tax professional, an emigration expert or a financial adviser with expertise in dual citizenship and international tax matters.  This is especially true when it comes to tax residence processes, which can be complicated to navigate. It is often safer and easier to rely on expert tax advice from a trusted professional.