Can non-residents buy property in South Africa?
Yes. Non-residents may own residential property in South Africa, either in their own names or through a company or trust. The transfer process is the same as for a South African resident, with a few additional steps.
Bringing in the funds
Funds for the purchase should be transferred to South Africa through an authorised dealer (a South African bank). The bank records the inflow, and the title deed can then be endorsed to show that the owner is a non-resident. This endorsement is important because it helps the owner to repatriate the proceeds when the property is later sold.
Non-residents can usually obtain a home loan from a South African bank only for part of the purchase price, so most foreign buyers fund the balance themselves.
Signing documents abroad
You do not need to travel to South Africa. Transfer documents can be signed before a notary public in the country where you are. Depending on the country, the notary's signature is then authenticated, for example by Apostille in countries that are party to the Hague Convention. We send you instructions tailored to your country, and Julian Bartlett, as a notary, can also advise on documents going the other way.
FICA and tax numbers
You will need to provide identity documents (usually your passport), proof of residential address and, where applicable, a South African tax number. If you will receive rental income, you will need to register for South African income tax.
When a non-resident sells
When a non-resident sells South African property for more than R2 million, the purchaser must withhold a percentage of the purchase price and pay it to SARS as an advance payment of the seller's tax, unless SARS issues a directive for a lower amount. The current rate is 7.5% where the seller is an individual, and higher for companies and trusts. Plan for this early, as a directive takes time to obtain.
Popular areas
We regularly act for buyers from abroad purchasing on the Garden Route and the Eastern Cape coast, in Plettenberg Bay, Knysna, St Francis Bay, as well as in Cape Town and Umhlanga.
Frequently asked questions
Do foreigners pay higher transfer duty?
No. Transfer duty is calculated on the same table for residents and non-residents.
Can I buy without visiting South Africa?
Yes. With documents signed before a notary abroad, the whole transfer can be completed without you travelling.
This guide is general information and not legal advice. Contact Julian Bartlett for advice on your circumstances.