When buying a property in south africa, you may be required to pay transfer duty to the south african revenue service (sars). Transfer duty is a tax that is calculated based on the value of the property and is payable by the purchaser.
The transfer duty is calculated according to a sliding scale and is only payable on properties with a value over a certain threshold. As of 2023, no transfer duty is payable on properties valued at R1.1 million or less. The transfer duty rate increases as the property value increases.
It’s important to note that transfer duty is separate from other costs involved in the property transfer process, such as attorney fees, bond costs, and registration fees.
The purchaser is typically responsible for paying the transfer duty, although this can be negotiated as part of the sale agreement. Your conveyancer or attorney can provide more information on the transfer duty and assist with calculating the amount payable.
