What Is Transfer Duty In South Africa


What Is Transfer Duty In South Africa ? Transfer Duty is a tax levied on the value of any property acquired by any person by way of a transaction or in any other way.

How much is transfer fees in South Africa?

Transfer Duty

​Value of the property (R)​​​Rate
​1 250 001 – 1 750 000R10 500 + 6% of the value above R 1 250 000
​1 750 001 – 2 250 000​R40 500 + 8% of the value above R 1 750 000
​2 250 001 – 10 000 000​R80 500 +11% of the value above R2 250 000
​10 000 001 and above​R933 000 + 13% of the value exceeding R10 000 000

How to avoid transfer duty South Africa?

Transfer duty is only required on properties valued at more than R1 000 000.

Property transfers are exempt from transfer duty in the following circumstances:

  1. Marriage in community of property. …
  2. Divorce. …
  3. Inheritance. …
  4. Cancelled transactions.

Importance of Transfer Duty In South Africa

When transferring property in South Africa, it is important to be aware of a tax called Transfer Duty. Generally, when the selling price or value of the property is in excess of a Government mandated threshold value, Transfer Duty is payable at the applicable rate.

Frequently Asked Questions About Transfer Duty In South African

Who pays the transfer duty in South Africa?

the buyer

Transfer costs are paid by the buyer of the property, to a conveyancing attorney who is appointed by the seller of the property. This is one of the additional costs incurred by the buyer, which also includes bond registration costs, rates and levies, and insurance.

Who gets the transfer duty?

When you purchase a property, you have to pay transfer fees to the conveyancing attorney who transfers the property from the seller’s name to yours. Transfer costs include the fees paid to the attorney, and the transfer duty paid to SARS (properties worth than R1 000 000 are exempt from transfer duty).

How is transfer duty calculated in South Africa?

Transfer Duty is calculated on the value of a immovable property (purchase price or market value whichever is the highest). Transfer Duty is calculated as follows: 0% up to R750 000. 3% on the balance between R750 001 and R1 250 000.

Do foreigners pay transfer duty in South Africa?

However, if the seller is a non-VAT vendor, the purchaser will be liable to pay transfer duty. Capital Gains Tax: Foreign nationals who acquire immovable property in South Africa are required to register as South African taxpayers, as the disposal of this property will attract Capital Gains Tax liability.

How much are transfer fees when buying a house in South Africa?

As a rule of thumb, you should allow for between 8% and 10% of the purchase price of the property for all the other costs involved in purchasing a property. These costs will include bond registration fees, transfer duty, transfer costs, and other legal fees.

At what point do you pay transfer fees?

“Once a bond has been granted and the buyer has accepted it, he or she will pay fees to register the bond and to transfer the property. The buyer will always be required to pay these fees, while transfer duty need only be paid if the property costs more than R900 000,” said Wheeler.

Who pays lawyer fees when selling a house in South Africa?

the purchaser

Typically the purchaser pays the transfer fees charged by the conveyancing attorneys attending to the transfer of the property into the purchaser’s name. Therefore, other than bond cancellation fees that the seller will pay if the seller has a bond that has to be cancelled, lawyer fees are paid by the buyer.

What are stamp duty rates 2022?

The stamp duty rate ranges from 5% to 12% of the purchase price, depending upon the value of the property bought, the purchase date and whether you are a multiple home owner. Anyone purchasing an ‘additional’ residential property will be charged a 3% surcharge on each of the threshold bands.

How much tax do foreigners pay in South Africa?

South African Tax law states that foreigners living in the country for 183 days or more within one tax year will be considered temporary residents for tax purposes.

Employment Agreements.

Taxable Income (R)Tax Rate (%)Cumulative Tax (R)
Up to 57,00000
57,000-140,0001818% of each R1

How are transfer fees calculated on property in South Africa?

Transfer costs vary depending on the purchase price. They are equal to the conveyancing attorney’s fees plus VAT. You can use ooba Home Loans’ Transfer Cost Calculator to determine your transfer costs. For example, on a home loan of R1 000 000 it would be R24 867 (including VAT).

Do I pay tax when I sell my house in South Africa?

Your capital gains tax will equal your capital gains x the 40% inclusion rate x your marginal tax rate (which increases according to your income). Capital gains on a primary residence (the residence in which the home seller lives) are excluded up to a rate of R2 000 000.

Who is exempt from paying tax in South Africa?

Interest exemptions

Interest from a South African source, earned by any natural person under 65 years of age, up to R23 800 per annum, and persons 65 and older, up to R34 500 per annum, is exempt from income tax.

Source ; scoutafrica.net

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