In an attempt to draw more remote workers, the Department of Home Affairs, South Africa has launched a nomad visa. This will attract remote workers employed by foreign firms, on the condition that their income is a minimum of 1 million rand (about $55,404) per year.
The nomad visa offers some tax exemption in the short term. It also specifies the time period of stay and the activities that the holders are allowed to indulge in, which means it offers a good mix of work and travel.
This visa will bring relief to many foreign companies that have been finding it difficult to import technicians and executives into South Africa, given its complex work-permit processes. The absence of skilled labour locally only added to the woes of these companies who already had a lot to deal with in terms of sometimes year-long delays in work-permit processing.
Now, applicants seeking work visa need to ensure their gross income is at least one million rand a year, whether they are employed by a foreign company or self-employed.
For work visas that are less than six months, applicants are allowed to seek tax exemption within 36 months. If the visa exceeds six months within a 36-month period, the applicants will have to mandatorily register with SARS as a taxpayer.
Additionally, applicants are required to follow South African employment laws wherever applicable.
In order to make it easier for foreign nationals, who do not qualify for other work to obtain general work visas, a new points-based system will be launched. Along with the age, this system will evaluate the qualifications, language skills, work experience, job offer and remuneration of the applicants.
Another amendment is that the applicants have only five years to obtain police clearance certificates before applying for visa.
