South Africa has recently introduced a digital nomad visa, officially signed into law on March 29, 2024. This visa allows remote workers to live and work in South Africa for up to one year Here are some key details:

• Valid for up to 1 year
• Application must earn at least US$55,000 per year

Requirements

• Valid Passport: Your passport must be valid during the application process
• Remote Work: You must prove that you work remotely, either as an employee, freelancer, or business owner with clients outside South Africa
• Income: Applicants must earn at least US$55,000 per year (approximately R1 million annually)
• Proof of Accommodation: You need to show proof of accommodation in South Africa
• Health Insurance: Health insurance designed for digital nomads is required

Required documents

• Proof of remote work (employment contract, client contracts, etc.)
• Proof of income (bank statements, pay slips, etc.)
• Proof of accommodation in South Africa
• Health insurance coverage
• Valid passport

Application process

1. Prepare Documents: Gather all necessary documents, including:
   • Proof of remote work (employment contract, client contracts, etc.)
   • Proof of income (bank statements, pay slips, etc.)
   • Proof of accommodation in South Africa
   • Health insurance coverage
   • Valid passport
2. Make an Appointment: Schedule an appointment with the nearest South African embassy or consulate.
3. Submit Application: Attend your appointment and submit your application along with all required documents.
4. Pay Fees: Pay the visa application fee. The exact fee details are yet to be announced.
5. Wait for Approval: Processing times can vary, so be prepared to wait for a decision on your application.

Taxes

When it comes to taxes for digital nomads in South Africa, here are the key points to keep in mind:

1. Registration with SARS: If you stay in South Africa for more than six months within a 36-month period, you are required to register with the South African Revenue Service (SARS) and pay local income tax.
2. Income Tax: South Africa has a progressive income tax system, meaning the tax rate increases with higher income levels. The rates range from 18% to 45%.
3. Double Taxation Agreements: South Africa has agreements with many countries to avoid double taxation. This means you won’t be taxed twice on the same income if your home country has such an agreement with South Africa.
4. Tax Residency: Your tax residency status will determine your tax obligations. If you are considered a tax resident, you will be taxed on your worldwide income. Non-residents are only taxed on income sourced within South Africa.
5. Consult a Tax Professional: Given the complexities of international taxation, it’s advisable to consult with a tax professional who can provide guidance based on your specific situation.