When the Department of Home Affairs announced last year that it would be implementing a remote work visa, more commonly known as the digital nomad visa, many South Africans — particularly those living in Cape Town — had strong reactions, the majority of them negative.
The common concern was that, backed by their foreign currency, the influx of digital nomads that the new visa would create would exacerbate the housing crisis and cause the cost of living to skyrocket, effectively pricing locals out of the market.
President Cyril Ramaphosa first announced that the government was looking into introducing the visa in April 2022, and after two years of delays — about which the Democratic Alliance-run Western Cape government routinely complained — the visa was finally implemented in May 2024.
It was expected that the new work permit would attract high-earning professionals and entrepreneurs to South Africa, which would spur local economic growth and development.
Phindiwe Mbhele, the director of corporate accounts at Home Affairs, in discussion with Marisa Jacobs, the managing director of Xpatweb, a work permit and immigration provider, said the department had seen an uptick in enquiries from remote workers looking to move to South Africa.
However, since May 2024, Home Affairs has issued only 24 digital nomad visas — a figure far lower than the droves of international remote workers the government had anticipated would flock to the country.
Digital nomads are mostly young foreign professionals in tech, finance, media or insurance, who move to a country for short stints and work for foreign-based companies online.
The number of visas issued was revealed by Home Affairs Minister Dr Leon Schreiber in response to questions from Rise Mzansi leader Songezo Zibi.
Read more: Digital nomads row — Cape Town mayor suggests tax on short-term rentals to protect locals
The breakdown of digital nomad visas issued is as follows:
- United Kingdom: 6;
- United States: 4;
- Russia: 4;
- Germany: 2;
- Kenya: 2;
- Brazil: 1;
- Kenya: 1;
- Mozambique: 1;
- Spain: 1;
- Sweden: 1; and
- Zimbabwe: 1.
The figure released by the Department of Home Affairs accounts for the number of visas issued as of 27 March 2025.
Several studies have ranked South Africa among the most popular digital nomad destinations in the world. Nebeus, a financial services provider specialising in global payments, released a study earlier this year ranking South Africa as the fourth most popular global digital nomad destination.
This is because South Africa, with its low cost of living compared to its Western counterparts, is among the most affordable places to live for remote workers. Nebeus estimated the monthly cost of living in South Africa to be $564 (about R10,500), with rent averaging $436 (about R8,100) for a total monthly expenditure of $1,000 (about R18,700). So, for a remote worker earning in pounds, euros or dollars, South Africa is an attractive destination.
Alternative routes to remote work in SA
The low number of remote work visas issued doesn’t necessarily mean that there are only 24 digital nomads working in South Africa. While there are no definite metrics on the number of international remote workers in South Africa, LinkedIn estimates that the number is about 10,000.
This suggests that while the digital nomad industry in South Africa is alive and well, remote workers are not opting for the official visa. The visa allows digital nomads to stay in South Africa for up to three years, provided they have proof of remote employment and a minimum annual salary of R650,796. If they spend more than six months a year in the country, they must register with the SA Revenue Service (SARS) to pay tax.
Senior Daily Maverick journalist Rebecca Davis has reported that the efficacy of the remote work visa is in question, since South Africa’s current immigration system makes it possible for tourists to stay for long periods without a digital nomad visa.
Davis wrote that many nomads do “border runs” or “visa runs”, where they travel to non-neighbouring countries for an unspecified period and return to South Africa to receive a fresh tourist visa. Working in the country on a tourist visa is, of course, illegal. However, the nation’s lax enforcement of its immigration framework — particularly when it comes to travellers with deep pockets — creates loopholes for many digital nomads.
Read more: ‘Game-changer’ — updated Immigration Act regulations now open to freelance digital nomads
Cape Town seems to be the destination of choice for digital nomads in South Africa. This has resulted in residents calling on the city council to implement a “tourist tax”. Mail & Guardian reported that more than 3,000 people signed a Change.org petition stating, “Cape Town is currently grappling with a severe housing crisis, as many locals are unable to afford the rising costs of rent, transportation, and basic necessities like food.”
However, poor regulation of digital nomads — many of whom are working in South Africa without the proper visas — could make it almost impossible to implement such a tax.
Additionally, the fact that many digital nomads are essentially working in the country illegally means they are not registered with SARS, and the country is missing out on much-needed tax revenue that could go toward maintaining public services and infrastructure. DM