Purchasing Property in South
Africa as a Non-Resident
Everything You Need to Know About Investing as a Non-Resident — Legal Insights, Transfer Costs, and Key Requirements
Important procedures & requirements to be aware of:
Local Registration Required
Foreign entities wishing to purchase property in South Africa must be registered locally.
Resident Public Officer
If buying through a South African company with foreign shareholders, you must appoint a South African resident as a public officer.
Residence Permits
If you plan to live in South Africa for extended periods, you will need to apply separately for a residence permit.
No Automatic Residency
Property ownership does not automatically entitle you to a residence visa.
Transfer Costs & Fees
Understanding the costs involved in a property transaction is essential. Here's a summary of who pays what during the transfer process:
For The Purchaser
Transfer Costs
This includes conveyancing fees (based on a standard tariff linked to the purchase price), Deeds Office charges, and expenses for clearance certificates (rates, levies, etc.).
Transfer Duty
A government tax calculated on a sliding scale based on the purchase price. (Note: If the seller is a VAT vendor, VAT may replace transfer duty.)
Bond Registration Costs
If you're taking out a mortgage, you'll also pay to register the bond with the Deeds Office.
Sundry Charges
Minor fees related to bank processes and administrative costs.
For The Seller
Agent Commission
Payable to the estate agent, unless otherwise agreed. (If the buyer pays, tax advice is recommended due to implications.)
Compliance Certificates
Electrical, plumbing, beetle, and gas (where applicable).
Bond Cancellation Fees
If there's an existing bond over the property.
Advance Rates & Utilities
Typically, sellers pay 60 days' worth in advance and settle any arrears.