Can a foreigner buy a house in South Africa without a permit?

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

Everything you need to know before buying real estate is included in our South Africa Property Pack

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THEAFRICANVESTOR

A team specialized in real estate investing in African countries (South Africa, Kenya, Nigeria, Ghana, etc.).

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 South Africa. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheAfricanVestor, we explore the South African 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 a foreigner legally own property in South Africa?

Yes, foreigners can legally purchase and own property in South Africa with full ownership rights.

South Africa maintains an open property market with no general restrictions based on nationality for residential or commercial property ownership. Both individual foreigners and foreign-registered companies are permitted to acquire property, provided they comply with South African law and exchange control regulations.

As of June 2025, there are no limitations on the percentage of foreign ownership in the South African property market. This policy has remained consistent, making South Africa one of the more accessible African property markets for international investors. The only proposed restrictions relate to agricultural land, but these have not been enacted into law.

Foreign buyers enjoy the same property rights as South African citizens, including the right to sell, lease, or transfer their property. The property title will be registered in your name at the Deeds Office, providing legal proof of ownership.

Property ownership in South Africa is governed by the common law system, which provides strong legal protections for property owners regardless of nationality.

Do I need a permit or visa to buy a house in South Africa as a foreigner?

No, you do not need any permit or visa to purchase property in South Africa as a foreigner.

Property ownership is completely separate from residency status in South Africa. You can buy property as a tourist, business visitor, or non-resident without any immigration documentation beyond a valid passport. The South African government does not require foreigners to hold any specific visa or permit to own real estate.

This means you can purchase property even if you're visiting South Africa on a standard tourist visa or business visa. The property transaction can be completed regardless of your immigration status, and you don't need to demonstrate any intention to relocate or establish residency in South Africa.

However, it's important to note that owning property does not grant you any residency rights, visa exemptions, or the right to live in South Africa. If you wish to reside in the country, you must apply for the appropriate visa or permit through standard immigration channels.

It's something we develop in our South Africa property pack.

Are there any restrictions on the type of property a foreigner can purchase in South Africa?

There are no restrictions on the type of property foreigners can purchase in South Africa, except for some proposed limitations on agricultural land that have not been enacted.

Foreigners can freely purchase residential properties including houses, apartments, townhouses, and condominiums. Commercial properties such as office buildings, retail spaces, warehouses, and industrial facilities are also available for foreign ownership. Vacant land for development purposes can be purchased without restrictions.

The proposed limitations on agricultural land have been under discussion for several years but remain proposals rather than enacted legislation. As we reach mid-2025, these restrictions have not become law, meaning foreigners can still purchase agricultural and farming properties. However, this area of law may change in the future, so it's advisable to monitor developments if you're interested in agricultural investments.

Foreign buyers can also purchase multiple properties without any limitations on the number of properties owned. There are no sectoral restrictions preventing foreigners from investing in specific types of real estate developments or geographic areas within South Africa.

Can I buy property in my own name or do I need to set up a company or trust?

You can buy property in your own name as a foreigner, and setting up a company or trust is optional.

Individual foreign buyers have the right to purchase and register property directly in their personal name. This is often the simplest approach for single property purchases, as it involves fewer legal entities and administrative requirements. The property title deed will be registered in your name at the Deeds Office.

Alternatively, you can purchase property through a South African company or trust structure. Some foreign buyers choose this route for tax planning purposes, estate planning considerations, or when multiple investors are involved. If you use a foreign company or trust to purchase property, that entity must be registered in South Africa for the transaction.

The choice between personal ownership and corporate/trust ownership depends on your specific circumstances, tax situation, and long-term plans for the property. Personal ownership is generally simpler and less expensive, while corporate structures may offer certain advantages for tax planning or multiple property investments.

You should consult with a South African attorney and tax advisor to determine the most appropriate ownership structure for your situation.

Is it possible to get a mortgage from a South African bank as a non-resident?

Yes, non-residents can obtain mortgages from South African banks, but typically only up to 50% of the property's value.

South African banks offer home loans to foreign buyers, but with more conservative lending terms compared to resident buyers. The standard loan-to-value ratio for non-residents is 50%, meaning you'll need to provide at least 50% of the purchase price as a cash deposit from abroad. Some banks may occasionally offer slightly higher ratios, but 50% is the typical maximum.

The remaining 50% must be funded through your own resources and transferred from abroad as foreign investment. Banks require proof that these funds originate from outside South Africa and are properly declared as foreign investment through the South African Reserve Bank's exchange control system.

Interest rates for non-resident mortgages are generally higher than rates offered to South African residents, typically 2-3 percentage points above the prime lending rate. Some banks may offer more favorable terms if you hold a South African work visa or can demonstrate strong ties to the country.

It's something we develop in our South Africa property pack.

How much deposit is typically required for foreign buyers?

Foreign buyers are generally required to provide a deposit of at least 50% of the property's purchase price.

Buyer Category	Minimum Deposit	Maximum Loan Amount
Non-resident foreigners	50% of purchase price	50% financing available
Foreign residents with work visa	40-50% of purchase price	50-60% financing possible
Cash buyers	100% (no financing needed)	No loan required
South African citizens	10-20% of purchase price	80-90% financing available
Permanent residents	10-20% of purchase price	80-90% financing available

Are there any additional taxes or fees foreigners should expect when buying property?

Foreign buyers should expect several taxes and fees, with total transaction costs typically ranging from 8-10% of the purchase price.

Tax/Fee Type	Rate/Amount	Notes
Transfer duty	0%-13% of property value	Exempt for properties under R1,000,000
Conveyancing fees	R8,000-R25,000 plus VAT	Attorney fees for transfer process
Deeds Office registration	R600-R1,500	Government registration fees
Bond registration (if financing)	R3,000-R15,000	For mortgage bond registration
FICA compliance costs	R2,000-R5,000	Financial intelligence verification
Municipal rates clearance	R500-R2,000	Municipal services clearance
Capital Gains Tax (on resale)	Up to 18% on profit	For individuals, higher for companies

Do I need to be physically present in South Africa to complete the purchase?

No, you do not need to be physically present in South Africa to complete a property purchase.

The entire property transaction can be completed remotely through proper legal documentation and power of attorney arrangements. Documents can be signed at a South African embassy or consulate in your home country, or before a notary public who can authenticate your signature for use in South Africa.

Many foreign buyers successfully complete property purchases without visiting South Africa during the transaction process. Your South African conveyancing attorney can handle all aspects of the transaction on your behalf, including property inspections, title searches, and the final registration process.

However, it's advisable to visit the property in person or arrange for a professional inspection before finalizing your purchase. While not legally required, physical inspection helps ensure you're making an informed investment decision. Many buyers visit during the offer and negotiation phase, then complete the legal formalities remotely.

Remote completion requires careful attention to document authentication and may take slightly longer than in-person transactions due to international courier requirements and embassy processing times.

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.

How does the conveyancing process work for foreign buyers?

The conveyancing process for foreign buyers follows the same legal procedures as for South African citizens, but with additional exchange control requirements.

The process begins with signing an Offer to Purchase agreement with the seller, which becomes legally binding once accepted. A conveyancing attorney then conducts due diligence including property inspections, title deed searches, and verification of municipal accounts and building plans.

For foreign buyers, all purchase funds must be transferred through an authorized South African bank and properly declared as foreign investment. The South African Reserve Bank requires documentation proving the source of funds and their foreign origin. Your attorney will assist with obtaining the necessary endorsements on the title deed to facilitate future repatriation of proceeds.

The transfer process involves registering the property in your name at the Deeds Office, which typically takes 2-3 months from the date of sale agreement. During this period, your attorney handles all legal requirements, coordinates with the seller's attorney, and ensures compliance with exchange control regulations.

Final registration occurs when the Deeds Office issues the new title deed in your name, at which point you become the legal owner. Your attorney will provide you with certified copies of all documents for your records.

What documents do I need to provide to buy property as a foreigner in South Africa?

Foreign buyers need to provide several key documents for property purchase and compliance with South African regulations.

1. **Valid passport** - Current passport with at least two blank pages for endorsements2. **Proof of address** - Utility bill or bank statement from your home country (not older than 3 months)3. **Proof of funds and source of funds** - Bank statements, investment account statements, or sale proceeds documentation4. **South African Revenue Service (SARS) tax number** - Required for property registration and tax purposes5. **Bank reference letter** - From your home country bank confirming your financial standing6. **Employment verification** - Letter from employer or proof of income (if applying for mortgage)7. **Financial statements** - Personal financial statements and asset declarations8. **Reserve Bank certificate** - For foreign exchange compliance (handled by your attorney)9. **Additional corporate documents** - If purchasing through a company or trust (registration certificates, trust deeds, etc.)

All foreign documents must be properly authenticated, either through apostille certification or South African embassy/consulate verification. Your conveyancing attorney will guide you through the specific requirements and help ensure all documentation is properly prepared and submitted.

It's something we develop in our South Africa property pack.

Are there any limitations on reselling the property later or transferring funds back out of South Africa?

Foreigners can resell property without restrictions and repatriate proceeds out of South Africa, provided they maintain proper documentation of their original foreign investment.

There are no time limitations on how long you must hold the property before selling, and no restrictions on who you can sell to. You have the same rights as South African citizens to market and sell your property at fair market value.

For repatriation of sale proceeds, you must demonstrate that the original purchase funds came from abroad and were properly declared as foreign investment. This is why it's crucial to keep all records of your initial fund transfers, Reserve Bank certificates, and property purchase documentation.

When you sell, the sale proceeds (including any capital gains) can be transferred out of South Africa through an authorized bank. The title deed should be endorsed as "non-resident" during the original purchase to facilitate this process. Capital gains tax may apply on any profit from the sale, calculated at up to 18% for individuals.

The repatriation process typically takes 2-4 weeks once all documentation is verified by the bank and South African Reserve Bank compliance requirements are met.

Can I live in the house I buy, or does owning property give me any right to residency or a visa?

Owning property in South Africa does not grant you any right to residency, a visa, or the ability to live in the country beyond standard tourist allowances.

Property ownership and immigration status are completely separate under South African law. You can own property but still need appropriate visas or permits to reside in South Africa for extended periods. Standard tourist visas typically allow stays of up to 90 days, after which you must leave the country or obtain a different type of visa.

If you wish to live in South Africa, you must apply for the appropriate visa through standard immigration channels. Options include work visas, retirement visas, business visas, or permanent residence permits, each with their own requirements and application processes.

Many foreign property owners use their South African property as a vacation home, visiting during tourist seasons and staying for the maximum allowed tourist periods. Others obtain long-term visas through employment, investment, or retirement programs to enable extended stays.

The South African government has occasionally considered introducing property-based residence permits, but no such program currently exists as of June 2025.

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. TheAfricanVestor - Can Foreigners Buy Property in South Africa
2. Hamiltons Property - Foreign Property Ownership Guide
3. IBN Attorneys - Buying Property Guide
4. AB Gross Attorneys - Foreigners Property Rights
5. TheAfricanVestor - South Africa Real Estate for Foreigners
6. Adams Africa - Non-Resident Property Guide
7. Expatica - Getting a Mortgage in South Africa
8. Nedbank - Property Investment for Non-Residents