*This content is brought to you by Shyft, the global money app powered by Standard Bank. Shyft allows you to invest in over 1,000 top global shares and ETFs on the New York, London, and Frankfurt stock exchanges.
Digital nomads worldwide rejoiced when South Africa’s Department of Home Affairs recently released updated Remote Work Visitor Visa requirements. This visa will allow highly skilled foreigners to work from South Africa for a year without registering as taxpayers for six months.
One of the new Government of National Unity mandates, which has contributed to an increase in positive investor sentiment towards South Africa, is to “overhaul the visa regime to attract skills and investment and grow the tourism sector”.
Minister of Home Affairs Leon Schreiber published amended criteria and conditions for the so-called “digital nomad” visa early in October, although President Cyril Ramaphosa introduced the concept in 2022. This temporary work permit would attract high-earning tourists who would spend their foreign currency in South Africa, contributing to VAT and injecting their incomes into local industries.
Independent research commissioned by the Reserve Bank and the International Food Policy Research Institute projects that an enhanced visa regime could create seven new jobs for every additional skilled worker attracted into the economy – and boost economic growth by up to 1.2%.
This summer, the influx of international remote workers is particularly visible in Cape Town, hot on the heels of the Western Cape legislature’s agreement with Airbnb. The housing platform claims it contributed an estimated R14.4 billion to GDP and supported 42,000 jobs in 2023 in Cape Town alone. The remote working trend has already contributed to a 28% increase in the rental of one-bed flats in the city, according to the State of Cape Town Central City Report.
Why Cape Town?
Eline, from the Netherlands, loved working from Cape Town for more than a year after first volunteering at a local NGO.
“It’s such a special place, despite all the country’s difficulties, and I have never found the same energy among people in other countries. People are very welcoming and warm, and I felt at home with all of the South Africans I met along the way,” she says.
One of the other benefits of remote working from South Africa is that it’s in the same time zone as Western Europe and the Netherlands specifically.
Jessica has worked and lived on five continents and is about to return to Cape Town for the third summer. The Californian says Cape Town “feels a bit like a mixture of Europe, America and African ruggedness”.
She enjoys how Cape Town offers the comforts of a city with the perks of being surrounded by natural beauty. “It’s amazing how both nomads and locals all want to participate in activities all the time,” she says. “We go wine tasting, hiking, surfing, kiting, cold plunging, and check out new restaurants all the time.”
To her, the affordability of enjoying Cape Town’s lifestyle is the most significant benefit. “Being able to feel fancy by going to wine farms to enjoy beautiful wine and food without breaking the bank is a huge draw. Nomads can try all the various restaurants in Cape Town and still afford them. It’s definitely gotten more expensive, even in the last three years, but still affordable compared to my home country.”
Another perk is the sheer amount of other digital nomads in Cape Town. “It’s easy to make friends, and it’s also fun that we get to meet back up every summer.”
How does it work?
- Duration of stay: The new remote working visa allows successful applicants to stay in South Africa for up to a year, with the possibility of an extension up to 36 months.
- Proof of employment: To qualify, applicants must provide documentation proving a foreign company employs them or is running an overseas business.
- Minimum income: Remote workers applying for the visa need to earn a minimum annual income of R 650 976.
- Points-based system: Applicants are awarded points for factors like professional qualifications, income level, and years of work experience. The more points an applicant earns, the stronger their application will be.
- Health: Applicants must show proof of medical aid or health insurance for their stay.
- Family and dependents: The visa allows remote workers to bring along dependents, such as spouses or children, so families can enjoy the experience together.
Information provided by the Department of Home Affairs
If you can’t beat them, join them
South Africa is one of 66 countries offering remote working visas (see the full list). With Shyft, you can easily earn an income from South Africa and spend it by buying forex at the cheapest forex rates while enjoying an exciting lifestyle abroad. You can also benefit from global markets by investing in one of Shyft’s four international stock exchanges boasting more than 1,000 shares and ETFs and enjoy the same local spoils that attract tourists worldwide.
Visit Shyft to download the app now, no matter where you bank. Shyft operates under the licence of The Standard Bank of South Africa Limited, an authorised Financial Services Provider (FSP number 11287).
Visit Shyft to download it now, no matter where you bank. Shyft operates under the licence of The Standard Bank of South Africa Limited, an authorised Financial Services Provider (FSP number 11287).
*The content provided is for informational purposes only. You should always research and/or seek professional advice before making investment decisions. Consult an immigration professional about tax implications.
Read also:
- SA’s Shyft towards offshore investing
- Why I came back to South Africa: brains gained explained
- Shyft adds the London and Frankfurt stock exchanges to give investors an even greater choice