Country guide
Buying property in South Africa as a foreigner
Rules last checked 30 October 2026 · 8 official sources · Education, not financial, tax, legal or immigration advice.
South Africa: a 2020 government investor guide states there are no restrictions on foreign ownership of property, with transfer procedures to follow and a registered South African entity needed if the buyer is a foreign entity.
What are you doing with South Africa?
Returns after tax, what is withheld, and the way out.
South Africa charges Transfer Duty on property not subject to VAT, at 0 percent up to ZAR 1,210,000 rising in bands to 13 percent on value above ZAR 13,310,000, and the acquirer owes it. Details
Questions people in this position often miss
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- Can I borrow locally?Not confirmed yet
Lending to a buyer living abroad is limited in many countries and the loan to value limit can be lower.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
- What do I report at home?Depends on your country
Foreign property, foreign accounts and foreign rent can each carry a form in the owner's own country.
- What is changing soon?Not confirmed yet
Bans, tax schedules and visa routes carry end dates, and a purchase often takes months to complete.
Whether a purchase gives a right to live there, and what living there costs in tax.
South Africa does not list property ownership among the grounds for permanent residence published by the government. Details
South Africa: a 2020 government investor guide states there are no restrictions on foreign ownership of property, with transfer procedures to follow and a registered South African entity needed if the buyer is a foreign entity. Details
South Africa charges Transfer Duty on property not subject to VAT, at 0 percent up to ZAR 1,210,000 rising in bands to 13 percent on value above ZAR 13,310,000, and the acquirer owes it. Details
Questions people in this position often miss
- Does buying give me the right to live there?Answered below
South Africa does not list property ownership among the grounds for permanent residence published by the government.
- What happens if I die, or the family inherits?Answered below
SARS states that Estate Duty is levied on the South African property of non residents, after an abatement of ZAR 3,500,000, at 20 percent on the first ZAR 30,000,000 of dutiable value and 25 percent above that.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- What is changing soon?Not confirmed yet
Bans, tax schedules and visa routes carry end dates, and a purchase often takes months to complete.
Part year stays, the yearly bill, and what the family inherits.
South Africa: a 2020 government investor guide states there are no restrictions on foreign ownership of property, with transfer procedures to follow and a registered South African entity needed if the buyer is a foreign entity. Details
South Africa does not list property ownership among the grounds for permanent residence published by the government. Details
South Africa charges Transfer Duty on property not subject to VAT, at 0 percent up to ZAR 1,210,000 rising in bands to 13 percent on value above ZAR 13,310,000, and the acquirer owes it. Details
Questions people in this position often miss
- Does buying give me the right to live there?Answered below
South Africa does not list property ownership among the grounds for permanent residence published by the government.
- What happens if I die, or the family inherits?Answered below
SARS states that Estate Duty is levied on the South African property of non residents, after an abatement of ZAR 3,500,000, at 20 percent on the first ZAR 30,000,000 of dutiable value and 25 percent above that.
- What is owed every year, even if the home sits empty?Not confirmed yet
Some countries tax an empty or personal use home on an assumed income.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
What is owed each year, on rent and on a sale, and what the heirs face.
South Africa charges Transfer Duty on property not subject to VAT, at 0 percent up to ZAR 1,210,000 rising in bands to 13 percent on value above ZAR 13,310,000, and the acquirer owes it. Details
Questions people in this position often miss
- What do I report at home?Depends on your country
Foreign property, foreign accounts and foreign rent can each carry a form in the owner's own country.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- What happens if I die, or the family inherits?Answered below
SARS states that Estate Duty is levied on the South African property of non residents, after an abatement of ZAR 3,500,000, at 20 percent on the first ZAR 30,000,000 of dutiable value and 25 percent above that.
- What happens when I sell?Answered below
South Africa requires a purchaser to withhold 7.5 percent of the price from a non resident individual seller (10 percent for a company, 15 percent for a trust) on sales above ZAR 2,000,000, and the maximum effective Capital Gains Tax rate for individuals is 18 percent.
- What is changing soon?Not confirmed yet
Bans, tax schedules and visa routes carry end dates, and a purchase often takes months to complete.
Who may buy
Choose a nationality to see the rules that apply to it.
Every rule, for every buyer
| Buyer | Property | Reading | Conditions |
|---|---|---|---|
| Everyone else | Any property | Open |
|
What it costs to buy
Transfer Duty on property that is not subject to VAT (banded rates)
- Rate
- 0 percent on the first ZAR 1,210,000 of value.
- 3 percent of the value above ZAR 1,210,000 up to ZAR 1,663,800.
- ZAR 13,614 plus 6 percent of the value above ZAR 1,663,800 up to ZAR 2,329,300.
- ZAR 53,544 plus 8 percent of the value above ZAR 2,329,300 up to ZAR 2,994,800.
- ZAR 106,784 plus 11 percent of the value above ZAR 2,994,800 up to ZAR 13,310,000.
- ZAR 1,241,456 plus 13 percent of the value above ZAR 13,310,000.
Transfer Duty liability and VAT interaction
- Rate
The Transfer Duty Guide of SARS states that the general rule is that the transferee, the person who acquires the property, is liable for transfer duty. SARS states that a sale of property is subject to either VAT or Transfer Duty.
What if the price is…?
- Transfer Duty on property not subject to VAT (a banded scale)ZAR 0
Duties and fees under the rules shownZAR 0
- Banded rates from 1 April 2025 for a sale that is not subject to VAT. A sale subject to VAT is charged VAT instead of Transfer Duty.
Only duties stated for a foreign buyer of a home are counted: flat rates, flat fees and the standard banded scale shown. Reliefs, exemptions and the buyer's own circumstances can change the result. A planning figure, not a quote: legal fees, agent fees and local taxes are extra.
Rent from the property
Tax on rent
- Owner living elsewhere
Income that has its source in South Africa, including rental income from a property in South Africa, is taxable in South Africa for a non resident.
Selling
Tax on a sale
- Owner living elsewhere
- SARS states that a non resident is liable to Capital Gains Tax only on immovable property in South Africa or assets of a permanent establishment in South Africa.
- For the 2026 to 2027 year the maximum effective Capital Gains Tax rate is 18 percent for individuals and special trusts, 21.6 percent for companies and 36 percent for other trusts.
- SARS states that the liability on a property arises when the sale agreement is signed, not when transfer is registered.
- Withholding on the sale
From 1 September 2007 a purchaser of immovable property disposed of for more than ZAR 2,000,000 must withhold from the price and pay to SARS 7.5 percent where the seller is a non resident natural person, 10 percent where the seller is a company and 15 percent where the seller is a trust. A non resident seller may apply on form NR03 for a directive that a lower or zero rate be withheld, which SARS states is generally processed within 21 business days.
- Exemptions
SARS lists these exclusions from 2 March 2026: an annual exclusion of ZAR 50,000, a primary residence exclusion of ZAR 3,000,000 of gain and a death exclusion of ZAR 440,000. Whether a non resident seller can use each exclusion could not be confirmed from the pages read.
Key numbers (6)
| Purchaser withholding on a sale by a non resident individualfrom 1 September 2007 | 7.5% |
|---|---|
| Purchaser withholding on a sale by a non resident companyfrom 1 September 2007 | 10% |
| Purchaser withholding on a sale by a non resident trustfrom 1 September 2007 | 15% |
| Sale price above which purchaser withholding appliesfrom 1 September 2007 | ZAR 2,000,000 |
| Maximum effective Capital Gains Tax rate for individualsfrom 1 March 2026 | 18% |
| Capital Gains Tax annual exclusionfrom 2 March 2026 | ZAR 50,000 |
What if I sell?
Gain (sale price less purchase price)ZAR 100,000
Tax on the sale
- Capital Gains Tax on South African property, individualZAR 0 to 18,000Charged on the gain: the sale price less the purchase price. The maximum effective rate is 18 percent for individuals and special trusts, so the result is shown from nothing up to that. The annual exclusion of ZAR 50,000 and the primary residence exclusion of ZAR 3,000,000 are not applied because it could not be confirmed that a non resident can use them.
Total under the rules shownZAR 0 to 18,000
A planning figure under the rules shown, not advice. Costs of buying and selling, improvements, reliefs for a home lived in, treaties and the owner's own circumstances can change it, and tax on a gain is usually settled on a return.
Inheritance and gifts
Inheritance and gift tax
- Summary
SARS states that Estate Duty is levied on the South African property of non residents, after an abatement of ZAR 3,500,000, at 20 percent on the first ZAR 30,000,000 of dutiable value and 25 percent above that. SARS states that Donations Tax applies to residents, so non residents are not liable for it.
Key numbers (3)
| Estate Duty rate on the first ZAR 30,000,000 of dutiable value | 20% |
|---|---|
| Estate Duty rate on dutiable value above ZAR 30,000,000 | 25% |
| Estate Duty abatement | ZAR 3,500,000 |
From your country
The country of the property is only half of it. The country where you live can limit the money you send, tax the same rent and gain again, and ask for forms of its own.
Choose where you live to see what your own country does when you buy in South Africa.
Residence through property
Permanent residence grounds listed by the government
- Threshold
- The South African government lists these grounds for permanent residence: a permanent work offer, exceptional skills and qualifications, establishing a business, refugee status, retired persons, financially independent persons, and relatives of a South African citizen or permanent resident.
- Property ownership is not among the listed grounds.
- The amounts for the retired person and financially independent grounds were not confirmed.
- Status
closed
The usual steps, in order
- Agree a purchase contract for the property.
- Establish whether the sale is subject to VAT or to Transfer Duty.
- Pay the Transfer Duty to SARS where it applies, which the acquirer owes.
- Have the deed of transfer prepared by a conveyancer and registered at the deeds office.
- A non South African entity registers a legal entity in South Africa and appoints a South African resident public officer before buying land.
Questions people ask
What if a buyer lives outside South Africa?
A 2020 South African government investor guide states that South Africa has no restrictions on foreign ownership of property, and that a non South African entity must register a legal entity and appoint a South African resident public officer to buy land.
How does Transfer Duty work for a purchase?
SARS publishes banded Transfer Duty rates from 0 percent on the first ZAR 1,210,000 to 13 percent above ZAR 13,310,000. SARS states the acquirer is generally liable, and that a sale is subject to either VAT or Transfer Duty.
What if a non resident sells a property in South Africa?
A purchaser must withhold 7.5 percent of the price from a non resident individual seller, 10 percent from a company and 15 percent from a trust, on sales above ZAR 2,000,000. The seller may apply on form NR03 for a lower or zero rate.
Is there an inheritance or gift tax for a non resident owner?
SARS states that Estate Duty is levied on the South African property of non residents at 20 percent up to ZAR 30,000,000 and 25 percent above, after a ZAR 3,500,000 abatement. SARS states that non residents are not liable for Donations Tax.
What is still open
These points could not be confirmed from an official source yet, so they are not stated as rules.
- The 2020 investor guide is the only official statement of who may buy that was read, and it is dated 2020.
- In February 2015 the Presidency announced a proposed Regulation of Land Holdings Bill that would stop non citizens owning land in freehold. Whether it was ever enacted could not be confirmed, and a 2017 draft Regulation of Agricultural Land Holdings Bill was also found. No enacted law was confirmed.
- The Preservation and Development of Agricultural Land Act 2024 text that was read has no nationality restriction on owning land, but it comes into operation on a date fixed by the President and its commencement was not confirmed.
- Exchange control rules for non residents, bank account opening and the Currency and Exchanges Manual could not be read because the Reserve Bank website rejected the request.
- Municipal property rates, VAT on new homes, conveyancing and deeds registration fees could not be confirmed from an official page read.
- The filing form and deadline for a non resident landlord, and whether rebates apply to non residents, could not be confirmed.
- Mortgage lending and loan to value limits for non residents could not be confirmed.
- Whether a non resident seller may use the Capital Gains Tax exclusions could not be confirmed.
- The ZAR amounts for the retired person and financially independent permanent residence grounds could not be confirmed.
Sources
Official pages these figures come from (8)
See what this does to your own numbers
Add a property in South Africa next to everything else you own, and see the income and net worth that follow after tax, year by year.
Free to start. No card. Rules checked 30 October 2026.
This is education, not financial, tax, legal or immigration advice. Rules change and depend on the buyer's own facts. Advice from a licensed professional in the country concerned is what settles a particular purchase.