South Africa Approves Digital Nomad Visa, But Concerns Arise

South Africa has officially passed its digital nomad visa regulations into law.  

The new visa program, proposed as amendments to the country’s immigration laws in February, is seen as a strong effort for the nation to attract skilled remote workers by offering specialized visas for up to three years — potentially boosting the local economy and adding to the country’s tech scene. 

However, according to a report published by Tech Cabal, the digital nomad visa has sparked debate among South Africans, with some expressing concerns over the potential rise in living costs, societal inequality, and tax revenue losses.  

According to a report published by Tech Labari, the minimum salary requirement of approximately $53,000 (R1,000,000) has also raised questions about the visa’s inclusivity and the eligibility of freelancers. 

The digital nomad visa permits a six-month income tax exemption for foreign employees working in South Africa — which reportedly will require amendments to existing tax legislation (i.e. South Africa’s Income Tax Act). Additionally, foreign companies will need to register within South Africa and comply with the country’s pay-as-you-earn (PAYE) tax system, which could create additional legal hurdles for employers and turn away digital nomads who were interested in the country’s program. 

Despite these concerns, the introduction of the digital nomad visa represents South Africa’s commitment to joining the list of over 60 countries now welcoming digital nomads. South Africa will now have to navigate the implementation of this new law, as it positions itself as a potential hub for the global remote workforce while addressing the risks and legislative challenges that come with it.