SA Prepares To Launch Digital Nomad Visas

South Africa is set to revolutionise remote work with the introduction of digital nomad visas, a game-changing initiative aimed at enabling foreign nationals to live and work remotely within the country.

The new visa categories, including remote working visas and critical skills visas, are strategically designed to encourage the temporary immigration of highly skilled professionals, particularly from the technology sector. These individuals are expected to contribute to the local economy through renting and spending.

South Africa’s President Cyril Ramaphosa has in his latest weekly newsletter underscored the government’s commitment to fostering economic growth and innovation through the implementation of these progressive visa categories. He highlighted that the Department of Home Affairs has already published draft amendments to existing immigration regulations, laying the groundwork for the implementation of digital nomad visas. Ramaphosa anticipates that this initiative will enhance South Africa’s competitiveness and economic expansion while also creating new employment opportunities.

“A remote worker who wants to work in South Africa while being employed by a foreign company can receive such a visa,” Ramaphosa stated in his newsletter. “International experience shows that employees with critical skills contribute to improved productivity, enhanced innovation, and the competitiveness of the firms they work for.” To be eligible for the critical skills visa, applicants must meet specific criteria, including a minimum annual income requirement of at least $55,000 (R 1 million), ensuring their ability to significantly contribute to the local economy and maintain high living standards.

The draft regulations propose the introduction of a points system for critical skills visas, taking into account various factors such as age, qualifications, language skills, work experience, and having an offer of employment.

While the announcement of digital nomad visas marks a significant milestone, there are still potential obstacles to overcome. Employers must remain mindful of tax, corporate, and employment law implications, including concerns about permanent establishment risks and legal protections for foreign employees. With the draft regulations now open for public comment until 29 March 2024, stakeholders have the opportunity to provide input and submit written submissions, influencing the development and finalisation of policies related to remote work in the country.