Transfer Duty

In South Africa, the government levies a tax on all property transactions, called transfer duty. This fee is paid when any property is bought and transferred into a new owner's name. When an individual buys a property, the transfer duty is based on the value of the land, and any structures built on it. This creates a clear advantage when purchasing vacant land, as transfer fees will only be paid on the value of land. Transfer duty is charged depending on the purchase price of the property. The higher the price of the property, the higher the transfer duty will be.

Property transfer Duty Rates for individuals.

For a property valued under R500 000, not transfer duty is payable.
Property valued Between R500 000 and R1 million, will have a transfer duty of R25 000
Transfer duty on a propert of one million and one Rand (R1 000 001) or more will have a transfer duty of R25 000, plus 8% on the value over R1 million.


For those purchasing a property in the name of a closed corporation (CC), company or trust, a transfer duty of 10% of the purchase price will be charged. In the case of a property being bought from a property developer, no transfer duty will be payable by the buyer. Developers are registered with the receiver of revenue to pay VAT, and as a result have to pay VAT on the properties which they sell. If the property developer is a VAT Vendor, or is registered to pay VAT, then the buyer will not have to pay transfer duty. In this case, the buyer actually pays the VAT, as it is included in the purchase price of the property, though this fact is not often disclosed to buyers by developers.