South Africa launches ‘nomad visa’ for remote workers

South Africa’s Department of Home Affairs has refiled significant changes to its work-permit regime, allowing the creation of a “nomad visa” for remote workers. The changes, gazetted on May 20, became law after a previous withdrawal due to procedural lapses in public commentary periods.

The new visa aims to attract remote workers employed and paid by foreign companies, provided they earn at least 1 million rand (approximately $55,404) annually. This visa also includes a short-term tax exemption.

This move, recommended by the office of the president, addresses criticism from major foreign-owned employers struggling to get technicians and executives into the country due to South Africa’s complex permit system. The system’s delays, exacerbated by a lack of local skilled workers, have left companies in a bind, with some applicants waiting over a year for a work permit.
Key Updates to the Remote Work Visa

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1. Income Requirement: Applicants must earn a gross income of at least R1,000,000 annually from a foreign employer or self-employment.

2. Tax Registration: For a remote work visa period not exceeding six months within a 36-month period, applicants can apply for an exemption from registering as a taxpayer with the South African Revenue Service (SARS).
If the visa exceeds six months within a 36-month period, the applicant must register with SARS as a taxpayer.
Employment Compliance:3. Applicants must comply with South African employment laws where applicable.

4. Visa Duration and Conditions: The visa will specify the duration of stay and permitted activities, facilitating a blend of work and travel.

Additional Amendments
1. Points-Based System: A new points-based system for general work visa applications will be introduced. This system will assess age, qualifications, language skills, work experience, employment offer, and salary, aiming to make general work visas more accessible to foreign nationals who do not qualify for other work visas.

2. Police Clearance Certificates: The period for obtaining police clearance certificates has been reduced to the five-year period immediately preceding the date of the visa application.

These updates are part of South Africa’s broader efforts to streamline its immigration processes and attract skilled foreign workers. By introducing the nomad visa, South Africa aims to boost its appeal as a destination for remote workers while addressing the needs of its local economy.