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.
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 published regulations do not specify the validity period of the digital nomad visa – these will be made clear when the official gazette is published in the coming months.
- 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. The published regulations do not state whether local work is allowed under the visa – this will be made clear when the official gazette is published in the coming months.
- Application details. Application processes and processing times are not clear – this is expected to be published in the coming months.
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
The Department of Home Affairs will publish further details on the program in an official gazette in the coming months.
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.
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