Can foreigners buy property in Cape Town easily?

Authored by the expert who managed and guided the team behind the South Africa Property Pack

Yes, the analysis of Cape Town's property market is included in our pack

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cape Town. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The AfricanVestor, we explore the Cape Town real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Cape Town, Johannesburg, and Durban. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners legally own residential property in Cape Town without restrictions?

Foreigners can legally own virtually any type of residential property in Cape Town with full ownership rights.

South Africa welcomes foreign property investment and places no nationality-based restrictions on residential property ownership in Cape Town. Foreign buyers enjoy the same property rights as South African citizens, including the right to buy, sell, rent out, and transfer ownership of apartments, houses, townhouses, and luxury residential units.

The only limitation that affects some foreign buyers involves certain types of agricultural land, but this restriction does not apply to urban residential properties within Cape Town city limits. As of September 2025, there are no quotas, nationality bans, or special approval requirements for foreign residential property ownership in the city.

Foreign ownership is governed by the same legal framework that applies to local buyers, meaning foreigners receive full title deeds and can register properties directly in their names without requiring South African partnerships or local trustees.

Are there any types of property in Cape Town that foreigners are not allowed to buy?

Foreigners can buy all residential property types in Cape Town, including apartments, houses, townhouses, and commercial properties.

The only restriction that may affect some buyers involves certain agricultural land parcels under specific circumstances, but this limitation does not extend to any residential properties within Cape Town's urban boundaries. Foreigners can freely purchase condominiums, freestanding houses, luxury estates, student accommodation, and investment properties without special permits.

Commercial real estate, including office buildings, retail spaces, and mixed-use developments, are also available to foreign buyers under the same conditions as residential properties. As of September 2025, no property type commonly found in Cape Town's residential market is off-limits to foreign ownership.

What are the average purchase prices for apartments and houses in central Cape Town right now?

As of September 2025, residential property prices in central Cape Town vary significantly based on location, size, and property type.

Property Type	Size	Price Range (ZAR)
One-bedroom apartment	40-60 sqm	800,000 - 1,200,000
Two-bedroom apartment	60-90 sqm	1,100,000 - 1,600,000
Three-bedroom house	120-180 sqm	1,600,000 - 2,400,000
Executive home	200+ sqm	2,400,000 - 5,000,000+
Luxury central properties	Varies	3,000,000 - 15,000,000+
Average price per sqm	Central Cape Town	30,000

How much transfer duty and other government taxes do foreigners pay when buying property in Cape Town?

Foreign buyers pay the same transfer duty rates as South African citizens, with no additional taxes based on nationality.

Transfer duty applies to properties valued over ZAR 1 million and follows a sliding scale structure. Properties between ZAR 1 million and ZAR 1.375 million incur 3% transfer duty, while properties between ZAR 1.375 million and ZAR 2.25 million pay 6%. The rate increases to 8% for properties between ZAR 2.25 million and ZAR 10 million, and reaches 13% for properties exceeding ZAR 10 million.

Additional government taxes include municipal rates of approximately 0.65% per annum based on municipal property valuation, deeds office fees calculated on property value, and VAT on conveyancing fees. Foreign buyers also pay bond registration fees if they obtain financing, calculated as a percentage of the bond amount.

It's something we develop in our Cape Town property pack.

What legal steps must a foreigner take to register a property in their name in Cape Town?

The property registration process for foreigners follows the same legal steps as local buyers, with mandatory conveyancer involvement.

Foreign buyers must first appoint a qualified local conveyancer who handles all legal aspects of the transaction. The process begins with submitting an Offer to Purchase, followed by due diligence including title deed checks, property inspections, and municipal clearance certificates.

Buyers then secure financing pre-approval if needed and sign transfer documents, which can often be completed abroad through South African embassies or notary services. The conveyancer submits all documentation to the Deeds Office for registration, where the title deed is issued directly in the foreign buyer's name.

FICA compliance requires foreigners to provide additional identity verification and proof of funds source, but this doesn't change the fundamental registration process. The entire legal procedure typically takes 6-8 weeks from signed offer to registered ownership.

Do foreigners need approval from the South African Reserve Bank to transfer money into Cape Town for a property purchase?

Foreigners must comply with South African Reserve Bank exchange control rules but typically don't need specific approval for standard residential property purchases.

For most residential property transactions, SARB approval is not required if funds come from legitimate offshore sources and proper documentation is provided. Buyers must transfer funds through the formal banking system and register transfers as "loan funds" or capital import with their South African bank.

Very large transactions or unusual circumstances may trigger additional SARB scrutiny, but standard residential property purchases under ZAR 10 million generally proceed without special approval requirements. The key requirement is maintaining proper documentation trails and using authorized dealer banks for fund transfers.

Failure to follow exchange control procedures can later block the repatriation of sale proceeds, making compliance essential for future liquidity.

Are there limits on how much financing South African banks will provide to foreign buyers in Cape Town?

South African banks typically offer up to 50% loan-to-value ratios for non-resident foreign buyers, significantly lower than local buyer financing.

Non-resident foreigners (those living abroad) can access maximum 50% financing from major South African banks, requiring 50% cash deposits. Foreign nationals residing in South Africa on valid visas may qualify for higher loan-to-value ratios up to 75%, depending on their visa status and income verification.

Banks require extensive documentation from foreign borrowers, including offshore income verification, credit history from home countries, and proof of funds for deposits. Interest rates for foreign buyers are typically 1-2% higher than rates offered to South African residents.

Some specialized lenders offer alternative financing structures, but most foreign buyers rely on cash purchases or limited bank financing combined with substantial personal deposits.

How long does the property transfer process typically take for a foreigner in Cape Town?

The complete property transfer process for foreign buyers typically takes 6-8 weeks from signed offer to registered ownership.

The timeline includes approximately 2-3 weeks for due diligence and document preparation, 1-2 weeks for FICA compliance and additional foreign buyer verification, and 2-3 weeks for Deeds Office registration and title deed issuance.

Delays can occur if foreign buyers' documentation requires additional verification, SARB exchange control paperwork is incomplete, or if buyers need to travel to South Africa for document signing. Using professional conveyancers experienced with foreign transactions can minimize potential delays.

Cash purchases typically process faster than financed purchases, as bank approval and bond registration add additional steps to the timeline.

What additional legal or conveyancing fees should foreigners budget for when buying property in Cape Town?

Foreign buyers should budget 3-5% of the purchase price for total legal and conveyancing costs.

1. **Conveyancing fees:** 1-2% of purchase price plus 15% VAT 2. **Bond registration fees:** If financing is used, calculated on bond amount 3. **Deeds office fees:** Fixed amounts based on property value 4. **FICA compliance costs:** Minor fees for identity and funds verification 5. **Bank charges:** For international transfers and exchange control compliance 6. **Property inspections:** Optional but recommended, typically ZAR 3,000-8,000 7. **Municipal clearance certificates:** Required for transfer completion

These fees are generally similar to those paid by local buyers, with only minor additional costs for FICA compliance and international transfer documentation.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Africa versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Are there restrictions on renting out a property in Cape Town as a foreign owner, either long-term or short-term?

Foreign property owners have full rights to rent out properties long-term with no restrictions based on ownership nationality.

Long-term rental (12+ months) operates under the same legal framework for foreign and local owners, with standard landlord-tenant protections and rental income taxation. Foreign owners can use local property management companies or manage rentals directly.

Short-term rentals like Airbnb are permitted but subject to local municipal regulations including safety compliance, zoning requirements, and permit applications. Many tourist-heavy areas require specific short-term rental licenses, and non-compliance can result in significant fines.

Professional property management services are commonly used by foreign investors to ensure compliance with changing municipal regulations and to handle guest management remotely.

Can foreigners easily resell property in Cape Town and transfer the proceeds back to their home country?

Foreigners can freely sell and repatriate sale proceeds provided the initial purchase was correctly registered with SARB exchange control procedures.

Successful repatriation requires maintaining proper documentation from the original purchase, including proof that funds were brought into South Africa through authorized channels and registered appropriately. Capital gains tax of up to 18% applies to non-resident sellers on profit from property sales.

The sale process follows the same legal procedures as local sellers, typically taking 6-8 weeks for completion. Once sale proceeds are received, funds can be transferred offshore through authorized dealer banks with proper documentation.

Failure to comply with exchange control procedures during the initial purchase can block repatriation, making proper compliance essential from the beginning of ownership.

It's something we develop in our Cape Town property pack.

What risks or challenges do foreigners commonly face when buying property in Cape Town that locals do not?

Foreign buyers face several unique challenges that don't affect local purchasers, primarily related to financing, currency, and regulatory compliance.

1. **Limited financing options:** Maximum 50% loan-to-value versus up to 100% for locals 2. **Currency fluctuation risk:** ZAR volatility affects investment returns and repatriation values 3. **Exchange control compliance:** Complex SARB procedures not required for local buyers 4. **Higher deposit requirements:** 50% cash deposits versus potential 0% for locals with good credit 5. **Extended verification processes:** Additional FICA compliance and international document verification 6. **Distance management challenges:** Property management and maintenance oversight from abroad 7. **No immigration benefits:** Property ownership doesn't grant residency or visa rights

Infrastructure challenges like load-shedding (scheduled power outages) affect all property owners but can be more difficult for foreign investors to navigate without local knowledge. Additionally, changing municipal regulations for short-term rentals can impact investment returns unexpectedly.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Tax Consulting South Africa - Foreign Property Investment
2. BambooRoutes - Investing Property South Africa
3. The AfricanVestor - Foreigners Buy Property Cape Town
4. Adams Africa - Non-Residents Property Guide
5. STBB Attorneys - Non-Resident Property Guide
6. BambooRoutes - Foreigners Buy Land South Africa
7. The AfricanVestor - Cape Town Real Estate Market
8. Ooba - Property Prices
9. The AfricanVestor - Cape Town Property
10. Nedbank - Property Investment Non-Residents