Investment property: South Africa

Updated 6 October 2026

South Africa is open to foreign buyers: a non-resident can buy a home freehold on the same terms as a citizen.

Foreigners most often buy in Cape Town and on the Atlantic coast, along the Garden Route, in Johannesburg and on the KwaZulu-Natal coast. In October 2025 the country was removed from the international anti-money laundering body's list of jurisdictions under increased monitoring, but banks and lawyers still check the buyer's source of money closely.

Taxes and fees on purchase

The buyer pays transfer duty when the seller is not registered for value added tax; when buying a new build from such a developer, value added tax is already in the price. Besides the duty the buyer pays the conveyancing attorney and registration fees. Dollar amounts are converted at the European Central Bank rate of 5 October 2026, about 16.63 rand per dollar, and rounded up.

Money from abroad and mortgages

• A non-resident brings the purchase money in through an authorised bank, and the lawyer records its origin. This also matters for taking the money back out after a sale.
• A local bank lends a non-resident no more than 50% of the price: the other half, the transfer duty and the deal costs must be brought in from abroad.
• Payments go through the conveyancing attorney's trust account, not directly to the seller.

How a purchase works

1. Both parties sign the offer to purchase, which becomes a binding contract at once, so we check the terms before signing.
2. The seller appoints the conveyancing attorney, and the buyer pays a deposit into their trust account.
3. The attorney checks title and obtains municipal and tax clearance certificates.
4. The buyer pays the transfer duty, and the attorney lodges the documents at the deeds registry.
5. Registration usually takes two to three months from signing.

Selling and the owner's taxes

If a non-resident sells a home for more than R2,000,000, about $120,400, the buyer withholds tax from the price for the revenue service: 7.5% for an individual, 10% for a company, 15% for a trust. This is an advance on capital gains tax, settled through the tax return. Rental income is taxed in South Africa, and the owner pays municipal property rates.

Residence

Buying a home does not give residence by itself. A financially independent foreigner with a net worth of at least R12,000,000, about $721,900, can obtain permanent residence, with a government fee of R120,000, about $7,300, on issue. A retiree with a steady income of at least R37,000 a month, about $2,300, can obtain a renewable 4-year visa.

Risks to know about

• A signed offer to purchase is already a contract, and withdrawing without loss is difficult.
• The rand fluctuates noticeably, which affects both the dollar price and rental yield.
• In some areas security and power supply reliability matter and are worth considering when choosing a property.

What we do

Murblz specialists select a property for your goal, check the offer to purchase before signing, work with a local conveyancing attorney, arrange the transfer of money through a bank with proof of source, and calculate the transfer duty and costs. If residence is needed, we prepare the application in parallel with the deal. We fix the estimate in writing.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Company formation · Business account · Personal account · All country programs

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