Buying or Selling Property in South Africa
Property transactions in South Africa can be complex, and one of the most important, and often overlooked, aspects is tax. Understanding the taxes involved in buying or selling property can save you time, money, and unnecessary stress.
Transfer Duty
- Payable by the buyer on properties above R1,100,000.
- Calculated on a sliding scale – the higher the purchase price, the higher the rate.
- First-time buyers often underestimate this cost when budgeting.
Capital Gains Tax (CGT)
- Applies when selling property for more than you paid.
- For primary residences, the first R2 million of profit is exempt.
- Secondary properties (holiday homes, rental investments) are fully subject to CGT.
VAT on Property Sales
- Some properties, particularly from developers or companies, may attract VAT instead of transfer duty.
- It is important to clarify this before signing a sale agreement.
Why Tax Planning Matters
Without proper planning, buyers may struggle to cover transfer costs, and sellers may face unexpected tax bills. Working with a conveyancer who understands property tax law ensures compliance with SARS and can help reduce unnecessary expenses.
At A V Dawson Inc., our conveyancing team provides tax advice as part of the property transfer process, giving you peace of mind during your transaction.
📍 Location: 7 Link Road, Belgravia, Bellville, 7530
📞 Phone: +27(0)21 944 8800 / +27(0)86 512 4501
📧 Email: info@avdawson.co.za
For reliable, professional, and efficient notary services, contact A V Dawson Inc. today!
