Foreigner Buying Property in South Africa Calculator
Calculate purchase costs, bond requirements, rental withholding tax (15%), and Section 35A withholding on disposal — for non-residents and foreigners buying SA property
Purchase Cost Summary
| Cost Item | Amount | Note |
|---|---|---|
| Transfer Duty | R 107 356 | Same for all buyers — no exemption for foreigners |
| Conveyancing Fees (approx.) | R 36 000 | LPC guideline + 15% VAT — negotiable |
| Required Deposit | R 1 500 000 | 50% for non-resident SA bond |
| SARB FinSurv fee (offshore funds) | N/A | Not applicable |
| Total Upfront (excl. deposit) | R 143 356 | Payable before registration |
South Africa has no foreign ownership restrictions on property. Foreigners may purchase freely. The SARB Exchange Control Regulations govern import/export of funds. All foreign-funded purchases must be reported to SARS on a FinSurv form.
Foreigners Buying Property in South Africa No restrictions • SARB rules • Tax
Can Foreigners Buy Property in South Africa?
Yes — South Africa has no foreign ownership restrictions on immovable property. Unlike many countries, there are no restrictions on nationality, citizenship, or residency status for purchasing property. Foreigners, non-residents, and foreign companies may all purchase SA property freely.
However, specific rules apply in certain areas:
- Agricultural land: Non-citizens may not own agricultural land under the Preservation and Development of Agricultural Land Framework Act (if enacted — still under consideration as of 2026).
- Sectional title (strata) units: No restrictions for foreigners.
- Leasehold (state land): Some coastal and state land is leasehold — check title deed.
SARB Exchange Control Rules
The South African Reserve Bank (SARB) regulates the movement of funds in and out of South Africa through the Financial Surveillance (FinSurv) department. Key rules for foreign property buyers:
Offshore-funded purchase: Proceeds from rental and eventual sale can be repatriated in full.
Rand-funded purchase: Proceeds may be subject to exchange control when repatriating.
FinSurv reporting: Mandatory for all cross-border property transactions.
The SARB exchange control rules changed significantly from 1 January 2021, simplifying many transactions. A FinSurv-registered bank (all major SA banks qualify) can guide you through the process. Offshore funds must be imported through authorised dealers (major banks) and reported to the SARB.
Worked Example — James Buying a Cape Town Property
James is a UK national (non-resident) who wants to buy a R3,000,000 apartment in Cape Town as a holiday let. He plans to fund it with a South African bond.
SA bank requirements: 50% deposit = R1,500,000. Bond of R1,500,000 at prime + 1.5% = 11.75%. Monthly repayment approximately R16,000.
Transfer duty: R106,784 + 11% × (R3,000,000 − R2,994,800) ≈ R107,356.
Rental income: If James earns R20,000/month (R240,000/year) gross, the tenant/managing agent must withhold 15% = R36,000/year and pay to SARS. James receives R204,000 net — but must still file a SA tax return.
On sale in 10 years at 5% appreciation (R4,887,000): Section 35A — the buyer withholds 7.5% × R4,887,000 = R366,525 from the proceeds. James's actual CGT on the R1,887,000 gain = 40% × 45% × R1,887,000 ≈ R339,660. James claims a refund of ~R26,865 through a SA tax return.
Frequently Asked Questions
Can a foreigner get a home loan (bond) in South Africa?
Yes, but conditions are stricter than for SA residents. Most banks (ABSA, FNB, Nedbank) will lend to non-residents, but typically require a minimum 50% deposit, charge a premium of prime + 1.0% to prime + 2.0%, and require proof of income in a recognised currency. Permanent residents and temporary residents with long-term work permits may qualify on standard terms with a lower deposit. Pre-approval is highly recommended before making an offer.
What is Section 35A withholding tax when a non-resident sells SA property?
Section 35A of the Income Tax Act requires the buyer of SA property from a non-resident to withhold a percentage of the purchase price and pay it to SARS. The rates are: 7.5% for natural persons, 10% for companies, and 15% for trusts. This withholding is an advance payment against the non-resident's actual Capital Gains Tax liability. If the withholding exceeds the actual CGT, SARS will refund the difference when the non-resident files a SA tax return.
Is rental income from SA property taxable if I live overseas?
Yes. Rental income from South African property is taxed in South Africa regardless of where you live. For non-residents, the tenant or managing agent must withhold 15% of the gross rental and pay it directly to SARS. The non-resident must also file an annual SA income tax return (ITR12) declaring the rental income. Countries with a Double Tax Agreement (DTA) with SA may have a reduced withholding rate — typically 10%. The UK, Germany, Netherlands, USA, Australia, and most EU countries have DTAs with South Africa.
Can I repatriate the proceeds when I sell SA property as a foreigner?
Yes. If you used imported foreign funds to purchase the property (declared to SARB at the time), the sale proceeds can be repatriated in full after settling all SA tax obligations. The authorised dealer bank (ABSA, FNB, etc.) facilitates the FinSurv process. If the property was purchased with SA rand (locally generated funds), different exchange control rules may apply. Obtain a tax clearance certificate from SARS before attempting to repatriate funds.
Do I need to register as a South African taxpayer to own property?
If you earn rental income from SA property, yes — you must register with SARS as a taxpayer and file annual income tax returns. Registration can be done online through eFiling or at a SARS branch. You will need to provide your passport, property details, and SA bank account details. A local tax practitioner or attorney familiar with non-resident tax matters is strongly recommended.