Gazetting of the long-awaited visa reform for remote workers has been lauded as a major step forward in attracting high-earning, long-term visitors to South Africa. The Department of Home Affairs (DHA) officially gazetted the remote work visitor visa and a points-based system for work visas on October 9.
The remote work visitor visa allows stays of three months to three years for employees of foreign-based companies, provided they earn at least R650 796 (€33 800) per year. This is expected to encourage high-income individuals to extend their stays and boost the local economy.
‘Most progressive reform in decades’
The visa is “the single most progressive and pro-jobs regulatory reform South Africa has seen in decades”, said DHA Minister Leon Schreiber, appointed in July as part of South Africa’s historic Government of National Unity.
“The department’s meticulous attention to detail to ensure these reforms are fit-for-purpose and market-friendly has resulted in two products that begin to reposition South Africa as a world-class destination for investment and tourism to create thousands of new jobs for South Africans.”
The remote work visa’s focus on highly paid individuals employed abroad will strengthen tax resources and spending on local services. “The remote work visa enables these individuals to spend their valuable foreign currency right here in South Africa, pay VAT into the South African fiscus, eat at South African restaurants and buy South African goods and services from South African producers,” Schreiber added.
The points-based system for work visas aims to cut red tape and introduce a transparent scale to determine who qualifies for critical skills or general work visas. The system introduces a gross annual income threshold of R650 796 (€33 800) for applications submitted outside the DHA’s Trusted Employer Scheme designed to protect existing jobs at the lower end of the market.
While the DHA lays the foundations for shifting exclusively to online application and adjudication, visa applications should still be submitted through relevant service providers and South African missions abroad, Schreiber stated.
Welcome by industry
The inbound industry has voiced widespread support for the reforms. “Simplification of the visa application process, with more relevant and streamlined criteria for those still requiring visas to South Africa, is a major and progressive step forward. This can only lead to an increase in tourist numbers and is something that should be applauded,” said Tshifhiwa Tshivhengwa, CEO of Tourism Business Council of South Africa.
The City of Cape Town is engaging with business leaders about the visa reforms to develop opportunities. “Cape Town has been preparing for these reforms by signing partnerships with tourism industry bodies and marketing agencies to promote Cape Town as a major global remote working location,” said Cape Town MMC for Economic Growth James Vos.
“Cape Town is an ideal remote working destination. Now people will be able to stay longer in our city and spend more money to benefit local businesses,” added Cape Town Mayor Geordin Hill-Lewis.
