Frequently asked questions.

Buying off-plan allows you to secure a property at today, with transfer only taking place once the development is complete. The build period is roughly two years.

Steps to buying off-plan:

• Reserve your apartment and sign an Agreement of Sale.
• Pay a deposit (held in a secure law firm trust account).
• With pre-sales achieved, the development starts construction, while your investment grows via capital appreciation.
• On completion, transfer and final payment takes place. If purchasing with a mortgage, your mortgage payments only commence at this point.

Throughout this process, your funds are protected, earn interest, and you’ll benefit from potential capital appreciation during the build period.

Purchases are formalised through a written Agreement of Sale and registered by a conveyancer. Ownership is only final once the property is transferred into your name, in the Deeds Office.

Before recommending a purchase structure, it’s important to understand the following:

• What is the purpose of the purchase of the apartment?
  • A new home to reside, a holiday home or a short-term / long-term rental investment.
• How long do you intent on owning the apartment? 
  • Short-term resale or a long-term investment.
• Will the apartment generate rental income? 
  • No, occasional, or short-term / full-time letting.
• Will you live in South Africa? 
  • Full-time or part-time.
• What is the value of the investment? 
  • R4 000 000 ($238 518 | €205 205) – R10 000 000 ($596 295 | €513 013)

• Foreign funds can be transferred into South Africa and must be recorded for future repatriation.
• Non-residents can typically finance up to 50% of the purchase price, locally.
• A South African bank account is required for ongoing transactions.

Funds brought in from abroad, along with any profit, can be repatriated when the property is sold, provided the correct documentation is in place.

If you require assistance, our partners at Future Forex can guide you through the process and assist with:

• Registering for a South African tax number.
• Obtaining the required tax directives for offshore fund transfers.

These requirements ensure full compliance with the South African Revenue Service (SARS) and a seamless process when repatriating funds.

There will be conveyancing / transfer fees associated with transferring ownership of the property into your name. A qualified Conveyancer manages the entire registration process, including preparing documentation, obtaining required clearances, and lodging the transfer at the Deeds Office.

Transfer fees typically include:

• Conveyancer’s fees (based on the purchase price).
• Transfer duty (unless VAT applies). This is not applicable for purchasing an apartment off-plan.
• Deeds Office and administrative costs.

These costs are payable by the purchaser and are a standard part of any property transaction in South Africa.

Occupational interest applies when a buyer takes occupation of the property before the transfer is finalised. In this instance, the buyer pays a monthly amount to the seller (similar to rent or a mortgage payment) for early access to their apartment before the apartment has transferred to their name, in the Deeds Office.

This amount is agreed upon in the Agreement of Sale and is usually calculated as a percentage of the purchase price.

There are few restrictions on foreign ownership, and property can be purchased:

• In your personal name.
• Jointly.
• A registered entity (local or foreign).

Purchasing in a personal capacity is the simplest and most practical route, particularly when acquiring a single apartment.

This option is recommended for:

• A once-off purchase.
• Medium-term ownership for resale or ‘property flip’.
• Buyers that do not requiring complex estate planning structures.

Owning property personally avoids the administrative and compliance requirements that come with running a company in South Africa.

Key benefits:

• Lower effective capital gains tax (±18% vs ± 21.6% for companies).
• Access to individual tax brackets (potentially reducing income tax on rentals).
• Potential access to the R2 million primary residence exclusion (if tax resident).

Considerations:

• Subject to South African estate duty (20%–25% depending on value).
• Withholding tax on sale (7.5% for non-residents — an advance, not final tax).

A company structure can be more strategic where the investment is larger, more active, or long-term.

This option is recommended for:

• Multiple apartment acquisitions.
• Development or trading activity.
• Investors seeking estate planning flexibility.

A company allows for a more structured, scalable approach to property investment, particularly when multiple stakeholders or transactions are involved.

Key benefits:

• Simplified succession planning (transfer of shares vs property).
• Fixed corporate tax rate (27%).
• Greater flexibility in claiming expenses.
• Limited liability protection.
• More efficient for higher-volume or profit-driven strategies.

Considerations:

• Higher effective capital gains tax (± 21.6%).
• Higher withholding tax on sale (10% for non-resident companies).
• Dividends tax (20%) when extracting profits.
• Ongoing compliance and administrative costs.

There is no one-size-fits-all solution when it comes to investing in property. It depends on several factors:

• The investor’s long-term vision.
• The scale of investment.
• Income expectations.
• How the property asset fits into a broader estate plan.

We’ll always start with understanding the intention behind your investment, before shaping the structure around it.

• All foreign nationals purchasing or owning property in South Africa must be registered for a South African tax number.
• Capital Gains Tax (CGT) must be declared on sale, regardless of the property’s value.
• An Approval of International Transfer Tax Clearance Certificate (AIT TCC) PIN is required to transfer sale proceeds offshore.
• Any rental or income earned in South Africa must be declared annually.
• Foreign buyers (non-SA-residents) are taxed only on South African-sourced income.
• Estate duty may apply to South African property.