A guide to digital nomad taxes in Cape Town
South Africa's Digital Nomad Visa introduced in 2024 allows foreign workers to live in the country for up to 36 months while working for international companies. But with the cost of living and your tax obligations, is it financially viable?
Cape Town is particularly appealing as a remote working hotspot. The city recently beat Bangkok, New York, Melbourne and London to top the annual Best Cities in the World list released by Time Out. With its breathtaking natural beauty, diverse culture, cosmopolitan food, and nightlife, it’s no surprise that most digital nomads are drawn here.
However, compared to other cities in South Africa, Cape Town is considered the most expensive, mostly because of housing prices. We’ve broken down the costs for two types of remote workers – a young professional just starting their career and a couple in their 40s to 50s with around 10 years left before retirement – and estimated what they would need to earn per month to ensure a decent quality of life.
Who qualifies for a Digital Nomad Visa?
To be eligible for South Africa’s Digital Nomad Visa, you must:
Work for a company outside of South Africa or run your own foreign-registered business.
Earn a minimum annual income of R650,796 (roughly $34,959).
Pass a criminal background check.
While the visa offers a long-term option for remote workers looking to live in South Africa, it is important to work out how much it will cost to live comfortably in Cape Town and how much tax you will need to pay.
Tax considerations for digital nomads in South Africa
The key benefit of the visa is that digital nomads are classified as non-tax residents, meaning they are only taxed on South African-sourced income – not their foreign earnings. However, if you stay in South Africa for longer than six months, you will need to register with the South African Revenue Service (SARS).
You will need to declare income from South African sources (e.g., salary from a South African company, contracting fees from local clients or SA-based interest income). There is no obligation to report or pay tax on foreign earnings (e.g., non-South Africa source income). However, note that if you earn any income from a trade, salary or commission while you are physically present in South Africa, it will likely be seen as South African source income (and therefore taxable in South Africa).
Deductible expenses
Digital nomads can claim certain costs incurred to generate income. Since most nomads work remotely without major business overheads, deductions are limited but may include:
Internet and communication expenses
A laptop or work-related tech purchases
Expenses directly related to a dedicated room/space that is only used for work purposes (e.g., portion of the accommodation fee/rent)
Office or shared workspace rental
Once digital nomads leave South Africa, they should deactivate their tax number with SARS to avoid ongoing tax obligations.
How much do you need to earn?
We calculated the after-tax income needed for a young, single professional and an older couple based on the 2025 tax tables.
For a young single digital nomad to earn R41,000 (after-tax) a month, they would need an annual salary of R650,000 (pre-tax). The effective tax on this is 23,64%.
For monthly earnings of R65,000 (after-tax), they would need R1,150,000 (pre-tax) annually. The effective tax is 30,76%.
For an older couple earning a combined R45,000 a month (R22,500 each after-tax), they would each need to earn a pre-tax annual salary of R325,000, with the effective tax being 14,86%.
If they each earned R50,000 (after-tax) they would need an annual salary of R820,000 (pre-tax) per annum. The effective tax is 26,74%.
Do I need to register for provisional tax?
If you earn more than R95 750 South African sourced income as a digital nomad, you will most likely need to register for provisional tax in South Africa. The purpose of provisional tax is to ensure that you pay tax to SARS in a periodic manner.
If you are a provisional taxpayer, you will need to file (and pay) provisional tax every six months. Failure to pay the correct amount of provisional tax could lead to administrative penalties.
However, if you have paid more provisional tax than your actual final tax liability for a year, you will be able to claim back the excess when filing your annual SA tax return.
Our team of SA tax practitioners can assist you with registering for SA taxes, performing tax calculations, filing tax returns, liaising with SARS and claiming double tax reliefs. We can handle your taxes while you focus on enjoying Cape Town and earning money.
Cost of living in Cape Town
For a young, single professional just starting their digital nomad journey, here's a breakdown of estimated monthly expenses in Cape Town:
Housing:
Housing is likely to be the biggest expense, especially over the peak tourist season where rates can be steep. Longer stays do, however, create opportunities for better deals on monthly rentals or co-living arrangements.
2. Utilities (electricity, heating, gas)
R900-R1500 for one person in a studio
3. Data/mobile phone per month
R600-R1000 for uncapped wi-fi
R350-R900 mobile phone
4. Transport
Own car, with petrol, parking, maintenance and insurance: R7,000-R10,000
MyCiTi (monthly bus ticket): R1,000 (day pass R90)
Ride-hailing trips: around R60-R150 (+/-R3,000-R4,000 monthly)
Public transport (trains/minibus taxis) where available: R175-R500
5. Coffee/coffee shop
R40-R45 per cappuccino
(Assuming four cappuccinos a week: R640-R720)
6. Food (Groceries and meals) per month
Basic groceries: R3,000 - R5,000 per month
7. Entertainment
Basic dinner out for two: R370-R500
(Assuming one dinner out per week: R1,480-R2,000)Two movie tickets (twice a month): R198 x 2 = R396
8. Medical (Health insurance, doctor visits, etc.)
Private health insurance: R1,500-R2500 (basic coverage)
GP visits: R540-R600
9. Fitness per month
Gym membership: R270-R1200
Yoga classes: R680-R1,000
For a couple in their 40s to 50s, here's a breakdown of estimated monthly expenses in Cape Town:
Housing:
2. Utilities (electricity, heating, gas) per month
R1,500-R3,500 for an apartment/house for two people
3. Data/mobile phone per month
R600-R1000 for uncapped wi-fi
R700-R1,800 mobile phone (per couple)
4. Transport
Own car, with petrol, parking, maintenance and insurance: R7,000-R10,000
MyCiTi (monthly bus ticket): R1,000 (day pass R90) per person
Ride-hailing trips: around R60-R150 (+/-R3,000-R4,000 monthly)
Public transport (trains/minibus taxis) where available: R175-R500 per person
5. Coffee/coffee shop
R40-R45 per cappuccino
(Assuming four cappuccinos a week each: R1,280-R1,440)
6. Food (Groceries and meals) per month
Basic groceries: R5,000 - R7,000 per month
7. Entertainment
Basic dinner out for two: R370-R500
(Assuming one dinner out per week: R1,480-R2,000)Fine dining for two: R2000-R3500
(Assuming twice per month: R4000-R7000)
Two movie tickets (twice a month): R198 x 2 = R396
8. Medical (Health insurance, doctor visits, etc.) per month
Private health insurance: R1,500 per person (basic coverage)
GP visits: R540-R600
9. Fitness per month
Gym membership: R270-R1200 per person
Yoga classes: R680-R1,000 per person
There will be other costs such as clothing, toiletries, drinks (R90-R250 for a mid-range bottle of wine and R68-R140 for a six pack of beer) and cleaning help (R350-R700 a day).
Travel costs in South Africa
Digital nomads working in South Africa for any length of time are likely to use the opportunity to explore the country. Assuming they take three trips a year to popular attractions such as the Kruger National Park, a road trip down the Garden Route and a visit to the Drakensberg, the total cost would range between R25,000 - R50,000 per year on a budget and R50,000 - R100,000 for a more luxurious trip.
Total costs
Based on these estimates, a young, single professional would need to earn between R26,939-R60,982 to live comfortably in Cape Town.
The combined salary of a couple in their 40s to 50s would need to be around R43,194 to R92,771.
The actual costs obviously would vary based on accommodation choices, dining preferences, and travel frequency.
Our qualified tax practitioners can assist you with a comprehensive estimate of what you will need to earn, how much tax you can expect to pay and lead you through the tax requirements of South Africa. We can also help you work out if you are eligible for the Digital Nomad Visa. Get in touch with us at taxsa@sableinternational.com or by calling +27 (0) 21 657 1517.