South Africa: Digital Nomad Visa Implemented, Further Details Forthcoming
October 11, 2024
At a Glance
- The South African government has implemented a Digital Nomad Visa which allows foreign nationals who earn a sufficient minimum income according to government regulations to reside in South Africa and perform work as a freelancer or for an employer outside of South Africa.
- Digital Nomad Visa holders conducting work for more than six months within a 36-month period would require the applicant to register with the South African Revenue Services.
- The Department of Home Affairs will publish further details on the program in an official gazette in the coming months.
- Update October 11, 2024: The Department of Home Affairs published the Digital Nomad Visa documentary requirements. The below alert content has been updated to reflect the new information.
The situation
Effective May 20, 2024, the South African government has implemented a digital nomad visa which allows eligible foreign nationals to work remotely for a foreign company or as a freelancer in South Africa.
A closer look
- Validity. The visa is valid for three years (renewable).
- Eligibility criteria. Eligible applicants must earn a sufficient minimum income according to government regulations.
- Tax registration.
- Digital Nomad Visa holders conducting work for more than six months within a 36-month period must register with the South African Revenue Services and pay taxes in South Africa on their income.
- Applicants whose visa is issued for less than six months can apply for an exemption from registering as a taxpayer.
- Local work. Foreign nationals cannot perform local work in South Africa under a Digital Nomad Visa.
- Application details. Applicants must complete and submit in person the relevant application form and the same supporting documents as the Visitor’s Visa Section 11(1) (i.e. a valid passport and a valid contract of employment signed by the applicant and the foreign employer) at a South African embassy or Visa Facilitation Services Centre in the country of origin or place of long-term residence.
- Dependents. Dependents may apply for a relevant visa (i.e. Accompanying Minor or Spouse Visa) to accompany the Remote Work Visa holder.
- Estimated processing time. Six to ten weeks.
Impact
This new category provides an immigration pathway for remote workers in South Africa, which was previously not available.
Background
- Legislative history. The South African government had introduced the framework legislation for the visa on March 28, 2024; however, the legislative process took longer than anticipated to implement the visa due to an incomplete public comment process.
- Continuing trend. Although digital nomad visas and permits are not being introduced as rapidly as when the trend first started, we still see such tailored digital nomad statuses being introduced over the past months, with more in the pipeline.
- Remote work visa warning. In countries where remote work is unregulated, workers and employers may unknowingly put themselves at risk of noncompliance with many aspects of the law, exposing them to possible fines or other penalties, depending on the country. Importantly, noncompliance with regulations could result in employers losing their rights to hire foreign labor. Additionally, this type of work arrangement may have employment or tax law impacts. It will become increasingly important as such policies are developed (and in many countries where remote work is unregulated) for employers to analyze strategies and assess risks associated with implementing and/or continuing remote work policies with a trusted immigration partner.
Looking ahead
Remote work and non-traditional non-sponsored statuses remain of high interest to corporate and public stakeholders globally as countries recover economically from COVID impacts and as talent shortages affect employers worldwide. Fragomen will report on related developments.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].