Can foreigners buy land in South Africa?

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

Who is the author of this content?

THEAFRICANVESTOR

A team specialized in real estate investing in African countries (South Africa, Morocco, Egypt, Kenya, 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 buy land in South Africa without being a resident or citizen?

Yes, foreigners can legally purchase land in South Africa without needing residency or citizenship status.

South African property law treats foreign buyers the same as citizens, with no general restrictions on foreign ownership of immovable property. This means you can buy land whether you're a tourist, business visitor, or someone considering future relocation to South Africa.

The only exception applies to illegal aliens who are not permitted to own property under South African law. As long as you have legal status to be in the country (even as a visitor), you can purchase land and property freely.

This open approach to foreign property ownership makes South Africa one of the most accessible African countries for international real estate investment.

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

What types of land are foreigners allowed or not allowed to buy in South Africa?

Foreigners can purchase most types of land in South Africa with very few restrictions.

Residential and commercial land purchases are completely unrestricted for foreign buyers. You can buy houses, apartments, office buildings, retail spaces, or vacant land for development without any special permits or approvals beyond the standard legal requirements.

Agricultural land is currently available for foreign purchase, but this may change in the future. The South African government has proposed legislation that could restrict foreign ownership of agricultural land, potentially converting existing ownerships to long-term leasehold arrangements rather than freehold ownership. However, as of June 2025, these restrictions are not yet in effect.

Rural land follows the same rules as other property types, unless it's specifically classified as agricultural land that could be subject to future legislative changes.

The key point is that current law allows foreign ownership of all land types, though you should monitor proposed agricultural land legislation if that's your target investment area.

Are there any restrictions on the size or location of land a foreigner can purchase?

Currently, there are no legal restrictions on the size or location of land that foreigners can purchase in South Africa.

You can buy properties of any size, from small residential plots to large commercial developments or extensive rural holdings. Location is also unrestricted - foreign buyers can purchase land anywhere in South Africa, from major cities like Cape Town and Johannesburg to remote rural areas.

However, proposed legislation regarding agricultural land includes potential size caps, though these have not been enacted. The government has discussed limiting the size of agricultural holdings that foreigners can own, but no specific limits have been promulgated into law.

This unrestricted approach gives foreign buyers significant flexibility in choosing properties that match their investment goals, whether for personal use, rental income, or long-term development projects.

Is it possible to buy agricultural, commercial, or rural land as a foreigner, and what are the rules for each?

Land Type	Current Rules for Foreigners	Additional Requirements
Agricultural Land	Purchase allowed, but monitor proposed restrictions	May require future conversion to leasehold
Commercial Land	No restrictions on purchase	Business registration if operating commercially
Rural Land	No restrictions unless classified as agricultural	Standard property transfer requirements
Residential Land	Completely unrestricted	Standard conveyancing process only
Mixed-Use Land	No restrictions	Comply with zoning regulations
Development Land	No restrictions	Municipal approvals for development
Coastal Land	No restrictions	Environmental compliance may apply

Can buying land in South Africa lead to permanent residency or citizenship over time?

Property ownership alone does not automatically grant permanent residency or citizenship in South Africa.

However, owning valuable property can contribute to your eligibility for permanent residency under the Financial Independence category. To qualify through this route, you must demonstrate a net worth of at least ZAR 12 million (approximately USD 630,000 as of June 2025), and property ownership can count toward this requirement.

The Financial Independence permanent residency route requires you to show that you can support yourself financially without needing employment in South Africa. Your property investment, along with other assets and income sources, can help demonstrate this financial capability.

After holding permanent residency for 10 years, you may become eligible to apply for South African citizenship. However, this pathway requires meeting additional criteria including language proficiency and demonstrating ties to South Africa beyond just property ownership.

So while property purchase doesn't directly lead to residency or citizenship, it can be a valuable component of a broader immigration strategy if you meet the financial thresholds.

What is the step-by-step process for a foreigner to buy land in South Africa, from offer to ownership transfer?

The land purchase process in South Africa follows a structured legal framework that typically takes 6-12 weeks to complete.

First, you identify suitable property and submit a written Offer to Purchase (OTP) to the seller. This document becomes legally binding once both parties sign it, so ensure all terms are clearly specified including purchase price, transfer date, and any conditions.

Next, you conduct due diligence by inspecting the property and verifying the seller's title deed. You'll also need to open a South African bank account to comply with exchange control regulations, even if you're paying cash from foreign sources.

A conveyancer (property lawyer) is then appointed to handle the legal transfer. While usually chosen by the seller, you as the buyer typically pay their fees. The conveyancer will prepare all transfer documents and liaise with the Deeds Office.

If you're obtaining a mortgage, you'll need to complete your loan application during this period. Foreign buyers can typically borrow up to 50% of the property value from South African banks.

Finally, all parties sign the transfer documents, you pay the required taxes and fees, and the conveyancer registers the transfer at the Deeds Office. Once registration is complete, you receive the title deed and take possession of your property.

What are the mandatory documents and legal requirements needed to complete a land purchase as a foreigner?

1. **Valid passport and visa documentation** - Proof of your legal status to be in South Africa2. **Proof of residence** - Either local South African address or foreign residential address3. **Source of funds documentation** - Bank statements and proof of how you acquired the purchase money4. **FICA compliance documents** - Identity verification, residence proof, marital status, and tax status5. **Signed Offer to Purchase** - The legally binding purchase agreement with the seller6. **Tax registration** - Required if you plan to repatriate funds when selling the property later7. **Compliance certificates** - Provided by seller for electrical, plumbing, gas, and pest control compliance

Exchange control documentation is particularly important for foreign buyers. You must demonstrate the legitimate source of your funds and comply with South African Reserve Bank regulations for bringing money into the country.

The FICA (Financial Intelligence Centre Act) requirements are strict and your conveyancer will need to verify your identity, residence status, and financial background before proceeding with the transaction.

All foreign documents may need to be notarized or authenticated at a South African embassy or consulate if you're signing them outside South Africa.

Can a foreigner buy land in South Africa without physically being in the country, and if so, how?

Yes, foreigners can complete the entire land purchase process remotely without being physically present in South Africa.

All required legal documents can be signed abroad and authenticated at a South African embassy, consulate, or by a qualified notary public. Your appointed conveyancer will coordinate the entire process from South Africa and keep you informed of progress.

You'll need to transfer funds through a South African bank account to comply with exchange control regulations. This can be arranged remotely through most major South African banks, though they may require additional documentation for non-resident accounts.

Power of attorney arrangements can also be used to authorize someone in South Africa to act on your behalf for specific aspects of the transaction, though this isn't always necessary with a competent conveyancer.

The key is working with experienced professionals who understand the requirements for remote transactions and can guide you through the authentication and documentation process from your home country.

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

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.

What are the common mistakes or pitfalls foreigners face when trying to buy land in South Africa?

The most critical mistake is failing to comply with exchange control regulations from the outset.

Many foreign buyers don't properly document their fund transfers or establish the correct banking arrangements, which can create serious problems when they later want to repatriate money from a property sale. Always ensure your funds enter South Africa through proper banking channels with full documentation.

Inadequate due diligence on property title and legal status is another common error. Some buyers rush the process without properly verifying that the seller has clear title or that there are no encumbrances on the property.

Underestimating the time required for the legal process leads to frustration and sometimes missed opportunities. The conveyancing process typically takes 6-12 weeks, and foreign buyers often need additional time for document authentication.

Budget miscalculations are frequent, with buyers not accounting for all taxes, legal fees, compliance certificates, and ongoing costs like municipal rates and maintenance.

Using unqualified professionals or trying to save money on legal fees often costs more in the long run. Always use a registered conveyancer and qualified property professionals.

Do foreigners usually pay cash or can they access mortgages, and what are the typical rates, terms, and tips to get financing?

Foreign buyers in South Africa typically use a combination of cash and mortgage financing, though cash purchases are more common due to lending restrictions.

South African banks will provide mortgages to foreign buyers, but loans are generally limited to 50% of the property's purchase price or valuation. The remaining 50% must come from your own funds, usually transferred from abroad.

Interest rates for foreign buyers are typically higher than for residents, and banks require extensive documentation including proof of foreign income, credit history, and asset verification. The approval process can take 4-8 weeks for foreign applicants.

Bond originators can help foreign buyers navigate the mortgage market and potentially secure better terms by shopping your application to multiple banks. They understand which banks are most favorable to foreign applicants.

Tips for securing financing include maintaining strong financial records, preparing for a substantial deposit requirement, demonstrating stable foreign income, and starting the application process early in your property search to understand your borrowing capacity.

What are the taxes, legal fees, and additional costs involved in buying and owning land as a foreigner?

Cost Type	Rate/Amount	When Payable
Transfer Duty	0% up to R1.1M, then sliding scale to 13%	At transfer
Conveyancing Fees	Varies by property value (typically R15,000-50,000+)	At transfer
Deeds Office Fees	R600-R2,000 depending on value	At transfer
Bond Registration	Same as conveyancing fees if financing	At transfer
Compliance Certificates	R3,000-R10,000 total	Before transfer
VAT	15% on new developments	At purchase
Capital Gains Tax	7.5%-15% for non-residents on sale	When selling

Where do most foreigners buy land in South Africa, what do they typically use it for, and what is the price range and future outlook?

Cape Town dominates foreign property purchases, particularly in areas like Clifton, Camps Bay, and the Atlantic Seaboard for luxury buyers, while areas like Somerset West and Stellenbosch attract those seeking value and lifestyle.

Johannesburg attracts business-focused foreign buyers, especially in Sandton, Rosebank, and other northern suburbs where commercial opportunities and security are priorities. The Waterfront and surrounding areas in Cape Town remain the most expensive, with premium properties ranging from ZAR 10-50 million.

Coastal towns like Plettenberg Bay, Hermanus, and Knysna are popular for holiday homes and retirement properties, with prices typically ranging from ZAR 2-15 million depending on location and sea views.

Foreign buyers typically use properties for holiday homes, rental investment properties, retirement planning, or business ventures. Many purchase with the intention of eventual relocation to South Africa.

The price range varies dramatically: rural or small-town properties can start under ZAR 1 million, suburban family homes typically range from ZAR 2-8 million, while luxury coastal and premium urban properties can exceed ZAR 20 million.

The future outlook remains positive for well-located properties, especially in Cape Town and other tourist-friendly areas. The South African rand's volatility can create opportunities for foreign currency buyers, while the established legal framework and growing tourism sector support long-term property values.

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

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. Malherbex Attorneys - Foreigners Guide to Buying Property
2. STBB Attorneys - Buying Property as Non-Resident
3. IBN Attorneys - Buying Property Guide
4. Private Property - Can Foreigners Buy Property
5. The African Investor - South Africa Real Estate for Foreigners
6. Hamiltons Attorneys - Foreign Property Ownership
7. AgriFraming - Agricultural Land Ownership
8. Snymans Attorneys - Foreigners Property Guide
9. Nedbank - Property Investment for Non-Residents
10. Bregmans Attorneys - Foreign Property Purchase