In South Africa, the buyer pays the transfer fees. Transfer fees are paid to an attorney who has been chosen by the property’s owner or seller to transfer ownership to you as the new owner. Transfer costs will vary based on the selling price of the property.
It is however important to note that transfer duty and transfer costs are not the same, so the R1 million transfer duty exemption does not apply to transfer costs.
What is Transfer Duty Property
The property “Transfer duty” is based on the property’s value and is due to SARS whenever ownership of a property changes. There has been no transfer duty on properties up to R1 million since February 2020, and if you purchased for more than R1 million, you pay no transfer duty on the first R1 million. There is no transfer duty if you buy into a brand-new development, however VAT is included in the purchase price.
see the link to the SARS website.
| Value of the property (R) | Rate |
| 1 – 1000 000 | 0% |
| 1 000 001 – 1 375 000 | 3% of the value above R1 000 000 |
| 1 375 001 – 1 925 000 | R11 250 + 6% of the value above R 1 375 000 |
| 1 925 001 – 2 475 000 | R44 250 + 8% of the value above R 1 925 000 |
| 2 475 001 – 11 000 000 | R88 250 +11% of the value above R2 475 000 |
| 11 000 001 and above | R1 026 000 + 13% of the value exceeding R11 000 000 |
