Go Digital, Go Global: South Africa launches nomad visa

Digital Nomad Visa

On 9 October 2024, the, the Minister of Home Affairs, Dr. Leon Schreiber, officially launched the highly anticipated Remote Work Visa, also known as the Digital Nomad Visa by making a third amendment to the Immigration Regulations of 2014. This new visa category, introduced alongside the New Points-Based System, aims to boost the South African economy by attracting a diverse international workforce of remote workers.

Eligibility Criteria

To qualify for a digital nomad visa, applicants must meet the following criteria:

1. Possession of a valid passport.
2. Provide verifiable proof of employment with a recognized foreign company or employer.
3. Demonstrate an annual income of at least ZAR 650,976.00  in the form of 3 months' bank statements. This threshold was reduced from the initial proposed amount of ZAR 1,000,000.00.
4. Applicants who are tax residents of countries with active double taxation agreements with South Africa must register with the South African Revenue Service (SARS) if they reside in South Africa for more than 183 days within any 12-month period.
5. Applicants who are not tax residents of countries with double taxation agreements with South Africa are required to register with SARS regardless of their length of stay.
6. Provide police clearance certificates from all countries where they have resided for more than 12 months in the past five years.
7. Include any accompanying spouses or dependents in the application.
8. Provide proof of comprehensive health insurance, travel insurance, sufficient financial means to support themselves during their stay, and secure accommodation (e.g., rental agreement or hotel booking).

Implications for Foreign Companies

The introduction of the Digital Nomad Visa raises some compliance questions for foreign companies employing remote workers in South Africa. While not yet definitively confirmed by the Department of Home Affairs, these companies may need to register with the South African Revenue Service (SARS) for Pay-As-You-Earn (PAYE) purposes.

Conclusion
This visa offers a compelling proposition for remote workers seeking a change of scenery. Experience the beauty and cultural richness of South Africa while maintaining professional productivity. Whether you're drawn to the bustling cities or the tranquil countryside, this visa offers the freedom to work remotely in a truly inspiring environment. Contact RSM South Africa today to learn more about the Digital Nomad Visa and receive expert guidance on your application process.

Bronwyn Kodisang                                                                                                                  Esther Kasambara

Legal Advisor                                                                                                                              Divisional Director: Legal