Digital nomads row — Cape Town mayor suggests tax on short-term rentals to protect locals


Cape Town’s problems with digital nomads are well documented – from claims of driving up rental costs to causing a shortage of accommodation, particularly in the centre of town. What is to be done? Cape Town mayor Geordin Hill-Lewis says one option is to put everyone on an equal footing by implementing suitable taxes on short-term rentals.
Hill-Lewis says a process is under way to change tariffs for those operating short-term rentals, adding that there needs to be an “equal playing field” in the accommodation sector.

As Daily Maverick has reported, digital nomads occupy short term-rentals along the Atlantic Seaboard, much to the ire of residents, who feel they are being priced out of accommodation in the city as owners rent out apartments and homes to digital nomads who spend weeks working remotely.

Advocacy project Inside Airbnb reported there were about 25,816 listed rentals on the short-term rental platform by 28 December 2024, largely concentrated along the Atlantic Seaboard, in the southern suburbs and along the city’s coast.
While these nomads often appear on social media taking in the city’s tourist attractions and entertainment venues, there is a downside: activists claim the housing crisis in the city is worsened by these visitors. Writing in Daily Maverick, Ndifuna Ukwazi’s Zacharia Mashele and Buhle Booi say this drives up rental prices, making it difficult for locals, particularly low- and middle-income households, to secure affordable housing.

In a wide-ranging interview with Daily Maverick this week, Hill-Lewis said he agreed with sentiments that short-term rentals need to be taxed “appropriately”.
“You can’t come into a very tourism-rich market and basically run a small hotel… if you’re running a permanent Airbnb, that’s what it is, but you’re not taxed like a hotel, you’re taxed like a private house,” he said.
The mayor said a process was under way to convert “permanent Airbnbs where people are not just renting out a room or renting out their granny flat” from residential to commercial tariffs.

“I think that’s only fair,” he said, adding: “There has to be an equal playing field.”
He explained that he could not tell developers of major hotel chains that they needed to pay business tariffs in the city because they run hotels while others who run operations like these on a much smaller scale do not.
Processes in the City’s revenue department were under way to change these tariffs for those for whom this is a main business.

“So, for me, that’s about an equal playing field, no questions asked there.”
Hill-Lewis is not the only government official to add to the discussion about short-term rentals and their impact.
The issue was raised in Parliament in October 2024. Senzo Nkala, the tourism department’s director of policy planning and strategy, told MPs on the tourism oversight committee that the department was looking into regulatory frameworks, including an approach to short-term rentals.

He said that when the department did consultations on the Tourism White Paper, for the development and promotion of tourism, there was an intention to support long-term rental markets and prevent large property owners from monopolising housing supply for short-term rental purposes, which can lead to rising rental costs and the displacement of long-term tenants.
According to the Parliamentary Monitoring Group, Nkala said that during consultations, estate agents had raised concerns about unregulated short-term rentals. They had complained that property owners bought a number of properties for short-term rental use without involving agents, leading to neighbourhood disruptions such as noise and nuisance complaints.
The department, Nkala said, intended to start extensive consultations with key stakeholders, focusing on how threshold-based rules could be implemented to balance market access with regulation and public interest.

In its impact report on Cape Town, short-term rental platform Airbnb said it had “long led calls for short-term rentals to be regulated”, and that regulation would help provide policy certainty for hosts and guests, and create a level playing field for all operators.
In September 2023, the department and Airbnb also signed a memorandum of understanding, which includes a national registration system and a national database for short-term rentals in the country to “provide transparency into the short-term rental market”.

“While taxing short-term rental owners like commercial properties may be a step towards regulating the market, it does not address the root issue: the unchecked prioritisation of short-term profits over the right to housing,” said Jonty Cogger, an attorney at Ndifuna Ukwazi.
He told Daily Maverick that without stronger protections for tenants, better rent controls and a commitment to well-located, affordable housing, “Cape Town will continue to cater to tourists and digital nomads at the expense of its own residents… the City must act urgently to ensure that housing serves people, not just profits.


Does the South African Business Visa Investment Need to Be Made All at Once? Introduction


No, the investment required for a South African business visa does not need to be made all at once. Applicants have the option to phase the investment over time, with certain rules, timelines, and documentation to follow.

1. Investment Requirement
Foreign nationals applying for a business visa must invest a minimum of R5 million (ZAR) into the business. This amount can include cash, equipment, or other capital, and must be documented and audited. The investment must contribute to the establishment, expansion, or operation of the business. In some cases, investments in critical sectors may qualify for exemptions or reduced amounts.

2. Upfront vs. Staggered Investment
Applicants can either:

Full Investment Upfront: This means depositing the full R5 million before applying for the visa, with proof of the deposit required.
Staggered Investment: The Department of Home Affairs (DHA) allows investment in stages, with a detailed business plan showing how the full investment will be made over 12-24 months. For example:
Year 1: Invest R2 million for business setup.
Year 2: Invest R3 million for expansion and employment.
3. Proof of Investment
Proof must be submitted to show financial capacity and commitment, including:

Bank Statements/Guarantees
Capital Equipment Valuations
Auditor’s Letter from a South African chartered accountant
Business Plan Documentation detailing how funds will be used.
4. Flexibility for Critical Sectors
Certain industries like IT, renewable energy, and agriculture may qualify for a reduced investment requirement. These sectors must demonstrate significant economic impact through a feasibility study.

5. Consequences of Non-Compliance
Failure to meet the investment requirement, whether upfront or phased, may lead to:

Visa Cancellation
Audits and Compliance Checks
Denial of Extension
Penalties
6. Employment Obligations
At least 60% of the workforce must be South African citizens or permanent residents. Failure to comply may affect visa renewal.

7. Summary
Investment Phasing: The R5 million investment can be phased, but a business plan is required.
Proof and Documentation: Submit proof of funds, financial documents, and progress reports.
Critical Sectors: Reduced investment may apply to industries with high economic impact.
Non-Compliance: Non-fulfillment can lead to visa issues or penalties.
Practical Tip: Consult with immigration experts to ensure compliance with South African visa requirements.

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Emigrating to South Africa - The Practical Side of Moving to Another Country


Introduction
Relocating to a new country is an exciting but challenging process. Moving to South Africa requires careful planning and preparation for a smooth transition. Whether moving for work, retirement, studies, or long-term travel, this guide provides insights into the logistics, costs, and legal requirements for emigrating to South Africa.

Understanding the Legal Framework

Customs Regulations
South Africa has strict customs regulations.

Duty-Free Imports: Personal items can be imported duty-free if owned for at least six months before relocation. Required documents include:
Inventory list, proof of ownership, and visa approval.
Customs forms (DA 304, P1.160).
New Items and Duties: Items purchased less than six months before may incur duties.
Prohibited and Restricted Items
Certain items are prohibited or restricted:

Prohibited: Firearms, narcotics, counterfeit goods, hazardous materials.
Restricted: Medications, plants, animals, food (may need permits).
Customs Clearance

Complete customs paperwork, including item descriptions and valuations.
Consider hiring a customs broker to ensure compliance.
Cost Considerations

Shipping Costs
Shipping depends on volume, weight, and distance:

Container Options:
Full Container Load (FCL): $6,000–$12,000
Shared Container (Groupage): $3,000
Get quotes from multiple movers.
Storage Solutions

In Your Current Country: Monthly costs range from $50–$300.
In South Africa: Book storage in advance.
Insurance
Moving insurance typically costs 1–3% of the declared value. Ensure coverage for damages, theft, or loss.

Downsizing

Sort items into Keep, Sell, Donate, or Discard.
Use platforms like Facebook Marketplace to sell, donate to charity, and recycle unwanted items.
Packing Smartly

Essential Items to Pack

Documents: Passports, visas, medical records, legal papers.
Clothing: Pack for varying climates.
Electronics: Adaptors for South African plugs (Type M/D).
Health: Bring medications, first-aid kits, and over-the-counter meds.
Packing Techniques

Use vacuum-sealed bags for clothes.
Label boxes clearly.
Protect fragile items with padding.
Pack an Essentials Box with toiletries and chargers.
Managing Logistical Challenges

Shipping Delays: Keep essential items in your carry-on.
Customs Issues: Hire brokers to expedite clearance.
Lost/Damaged Items: Get insurance and document items.
Conclusion
Moving to South Africa is exciting with proper planning. Understand customs, manage costs, downsize wisely, and pack efficiently to make the transition easier. Utilize professional movers, insurance, and helpful resources for a stress-free move. Welcome to South Africa!


Bill to remedy unconstitutional sections of Refugee Act expected by March


The Department of Home Affairs is drafting a bill to remedy constitutional defects in the Refugees Act.
•    The Department of Home Affairs will present a legislative amendment to Parliament by March to address a Constitutional Court ruling that parts of the Refugee Act are unconstitutional for denying asylum seekers' rights.
•    The Constitutional Court confirmed a ruling that certain subsections of the Refugee Act and its regulations are inconsistent with the Constitution, following an application by the Scalabrini Centre.
•    The apex court also found sections of the Immigration Act unconstitutional last December, and the committee expects a similar briefing from the department about how it would address this.

A legislative amendment to give effect to a Constitutional Court ruling that sections of the Refugee Act are unconstitutional by denying asylum seekers' rights will be put before Parliament by March, the Department of Home Affairs has said.
On Tuesday, the department briefed the Portfolio Committee on Home Affairs on how it would respond to the ruling.
Last December, the Constitutional Court confirmed the Western Cape High Court's ruling, delivered by Deputy Judge 

President Patricia Goliath.
The Scalabrini Centre applied to the High Court for a declaratory order that subsections and the Regulations of the Refugee Act are inconsistent with the Constitution and invalid.
They argued the minister of home affairs - at the time it was Aaron Motsoaledi - the director-general of the Department of Home Affairs and the chairperson of the department's Standing Committee for Refugee Affairs created a system whereby asylum seekers, who failed to renew their visas within one month of the date of expiry, were deemed to have abandoned their applications for asylum unless they could satisfy the standing committee there were compelling reasons for their failure to renew their visas timeously.

They also argued this was inconsistent with international law, the Constitution and Refugees Act's principle of non-refoulement, meaning "one fleeing persecution or threats to 'his or her life, physical safety or freedom' should not be made to return to the country inflicting it".
Scalabrini also contended the impugned subsections were irrational and arbitrary and, therefore, unconstitutional, serving no legitimate government purpose in that they disqualified asylum seekers from the very system designed to protect them.

The courts agreed.
At a meeting last month, parliamentary legal services advised the committee it should invite Home Affairs Minister Leon Schreiber to brief the committee on what steps the department proposed to take to address the judgment.
The department notified the committee it is busy drafting the Refugees Amendment Bill, which is currently being consulted among the department's different branches.

The draft bill will then be submitted to the department's executive committee for approval to submit to Schreiber.
The department does not believe that it must submit the bill for public comment, as it is mandated by the Constitutional Court. It will also request the Presidency to waive a Socio-Economic Impact Assessment.

The department will request the Office of the Chief State Law Advisor to certify the bill, before it goes through the normal Cabinet process. The department was confident it would introduce the bill to Parliament by the end of March.
The Refugees Act was not the only immigration law to be found to be unconstitutional by the apex court last December.
The court found it is unconstitutional that the Immigration Act requires parents in South Africa on spousal visas to leave the country to reapply for a visa when theirs expire due to an end to their spousal relationship.

The court suspended the order of invalidity for 24 months, but ordered parents would be allowed to stay in South Africa while they apply for their new visas. If the legislation is not amended by the deadline, that provision would be read into the law.
Parliament's legal services advised the committee it would be preferable the legislation be amended to avoid a situation where the courts take over Parliament's legislative function.
Legal services also advised the department should brief the committee on how it intends to address the court ruling.


I am illegal and want to regularise my status. What do I need to do


If you are unlawfully present (i.e., "illegal") in South Africa and wish to regularize your status, the process is complex and requires careful planning. South Africa’s immigration laws, governed by the Immigration Act 13 of 2002 and its regulations, are strict, and overstaying or entering illegally can result in severe penalties, including deportation, bans, or being declared a "prohibited person". Below is a detailed, step-by-step guide to navigating this situation:
1. Understand Your Current Legal Status
• What Makes You "Illegal"?
o Overstaying your visa (e.g., visitor, work, or study visa).
o Entering the country without a valid visa (if required for your nationality).
o Violating visa conditions (e.g., working on a tourist visa).
• Risks of Being Illegal:
o Arrest, detention, or deportation.
o A re-entry ban (1–5 years) under Section 30 of the Immigration Act.
o Difficulty applying for future visas.
2. Immediate Steps to Take
a. Do Not Ignore the Situation
• The longer you overstay, the harsher the penalties. Act promptly to avoid criminal charges or bans.
b. Consult an Immigration Practitioner
• A Immigration Practitioner can:
o Assess your eligibility for regularization.
o Advise on risks (e.g., deportation if you approach Home Affairs unprepared).
o Represent you in dealings with the Department of Home Affairs (DHA).
3. Pathways to Regularize Your Status
There is no general amnesty in South Africa for undocumented individuals, but you may explore the following options:
Option 1: Voluntary Departure
If you cannot regularize your status in South Africa, leave voluntarily to avoid harsh penalties.
• Process:
1. Depart South Africa before being detected as illegal.
2. Apply for a new visa from your home country (e.g., visitor, work, or study visa).
• Advantages:
o Avoids a re-entry ban (unless you overstayed by more than 30 days).
o Preserves future visa eligibility.
• Disadvantages:
o Requires starting the visa process from scratch.
Option 2: Apply for a Visa or Permit
If you qualify for a visa/permit, you may apply to regularize your status without leaving South Africa, but strict conditions apply.
Submit a good cause at Immigration Inspectorate with reasons why you became illegal
a. Apply for a Visa/Permit in Good Cause
• Eligible Categories:
o Spousal/Partner Visa: If married to a South African citizen/permanent resident.
o Work Visa: If you have a formal job offer and the employer complies with labor laws.
o Study Visa: If enrolled at a registered institution.
o Business Visa: If investing R5 million in a South African business.
o Relative’s Visa: If dependent on a South African citizen/permanent resident.
• Requirements:
o Passport valid for 30+ days after visa expiry.
o Police clearance (from South Africa and home country).
o Proof of financial means.
o Medical and radiology reports.
• Key Challenge:
o Home Affairs may refuse to process your application if you are already illegal.
If you overstayed due to exceptional circumstances (e.g., medical emergency,), request a waiver to bypass penalties.
• Submit:
o A letter explaining your reasons for overstaying.
o Supporting evidence (e.g., hospital records, flight cancellation proof).
• Outcome:
o If approved, you can apply for a visa without leaving South Africa.
o If denied, you must depart and face potential bans.
Option 3: Asylum/Refugee Status
If fleeing persecution, apply for asylum at a Refugee Reception Office (e.g., in Pretoria or Cape Town).
• Process:
1. Submit an asylum application (Form RAD-1).
2. Attend an interview with the Refugee Status Determination Officer.
• Advantages:
o Legal stay while your application is processed.
o Access to a refugee ID and work permit.
• Risks:
o Asylum is not a pathway to permanent residence unless approved as a refugee.
o Fraudulent claims lead to deportation and bans.
Option 4: Ministerial Intervention
In rare cases, the Minister of Home Affairs may grant discretionary relief for:
• Humanitarian reasons (e.g., critical medical treatment for a child).
• Compelling economic contributions (e.g., investors creating jobs).
• Process: Submit a formal request via an immigration lawyer.
4. Risks of Applying In-Country
• Arrest and Deportation:
Approaching Home Affairs without legal advice could result in detention.
• Section 32 Notice:
If arrested, you may receive a notice to depart within 14 days (voluntary deportation).
• Prohibited Person Status:
Overstaying by 30+ days triggers an automatic 12-month re-entry ban.
5. Step-by-Step Process to Regularize
1. Consult a Lawyer: Assess your options and risks.
2. Gather Documents:
o Passport, police clearances, proof of relationship/employment, etc.
3. Choose a Pathway: Apply for a visa, waiver, or asylum.
4. Submit Application: of good cause
o Via VFS Global (for visas) or a Refugee Reception Office (for asylum).
5. Await Outcome:
o Visa processing can take 6–12+ months due to DHA delays.
6. Comply with Conditions:
o If approved, adhere to visa terms to avoid future issues.
6. Critical Considerations
• Avoid Fraud: Misrepresentation (e.g., fake marriages or documents) results in a 5-year ban.
• Stay Informed: Immigration policies change frequently
• Beware of Scams: Only use licensed immigration practitioners (check with the South African Council for Legal Practitioners).
8. What If You Are Detained?
• Contact your lawyer or embassy immediately.
• Request a deportation hearing to argue for voluntary departure.
• Apply for bail if detained longer than 48 hours.
9. Final Advice
• Act Quickly: Delays worsen penalties.
• Prioritize Voluntary Departure if no viable regularization pathway exists.
• Keep Records: Save all application receipts, correspondence, and legal advice.
Regularizing your status in South Africa is challenging but not impossible. Success depends on your eligibility, adherence to the law, and professional guidance. Always consult a registered immigration attorney to navigate this high-stakes process safely.
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