How to buy a second property in South Africa in 2025

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?

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 South Africa. 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 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.

What are the legal requirements for foreigners when buying property in South Africa?

Foreign nationals face virtually no legal restrictions when purchasing property in South Africa, making it one of the most accessible property markets globally for international buyers.

You can buy any type of residential or commercial property, including land and multiple properties, without needing South African residency, a visa, or citizenship. This applies to freehold properties, sectional title units, and even vacant land for development purposes.

The primary legal requirement is that all purchase funds must be transferred through authorized South African banks to comply with the country's exchange control regulations. You'll also need to complete FICA (Financial Intelligence Centre Act) compliance, which requires providing identity documentation, proof of address, and source of funds verification.

As of September 2025, there are no enacted restrictions on foreign purchase of agricultural land, though government discussions about potential future limitations continue periodically. The current legal framework strongly favors foreign investment in South African real estate.

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

How easy is it to buy a second property in South Africa compared to Western countries?

Purchasing a second property in South Africa is significantly easier than in most Western countries, particularly when compared to nations with strict foreign ownership restrictions.

Unlike countries such as New Zealand, Denmark, or Switzerland that impose substantial barriers on foreign property ownership, South Africa treats foreign buyers almost identically to local residents. You face no additional taxes, ownership caps, or approval processes simply because of your nationality.

The documentation requirements are straightforward and comparable to standard Western property transactions. The main difference lies in South Africa's exchange control regulations, which require proper fund channeling through authorized banks—a process that's well-established and routine.

Property searches, legal processes, and title registration systems are mature and transparent. Many international buyers find the process more streamlined than purchasing property in their home countries, particularly regarding bureaucratic complexity and timeframes.

What is the step-by-step process for purchasing a property in South Africa?

The South African property purchase process follows a clear 11-step sequence that typically takes 8-12 weeks from initial offer to title registration.

1. **Property Search**: Identify suitable properties through reputable agents or online portals2. **Offer to Purchase (OTP)**: Submit and sign this binding legal document with price and conditions3. **Due Diligence**: Conduct property inspections and verify title and legal status4. **FICA Compliance**: Complete anti-money laundering documentation requirements5. **Bank Account Setup**: Open a South African bank account for the transaction6. **Financial Approval**: Apply for mortgage financing if required (up to 50% loan-to-value for non-residents)7. **Fund Transfer**: Send purchase funds through approved banking channels8. **Conveyancer Appointment**: Engage a licensed conveyancing attorney for legal transfer9. **Document Signing**: Complete all legal documentation (can be done remotely)10. **Fee Settlement**: Pay transfer duty, legal fees, and registration costs11. **Deeds Office Registration**: Receive official title deed in your name

Each step has specific requirements and timeframes, with the conveyancer coordinating most activities after the initial offer acceptance. The process is well-regulated and follows established legal protocols.

What documents do you need to provide to complete the purchase?

Document requirements for foreign property buyers in South Africa are comprehensive but straightforward, focusing primarily on identity verification and fund source validation.

Document Category	Required Items	Authentication Needed
Identity Verification	Certified copy of valid passport	Notarized or apostilled if signed abroad
Address Proof	Proof of foreign/home country residence	Recent utility bill or bank statement
Financial Documentation	Bank statements showing source of funds	Original bank letterhead statements
FICA Compliance	Marital status, tax status declarations	Sworn affidavit format
Legal Documents	Signed Offer to Purchase agreement	Witnessed and notarized
Property Certificates	Electrical, plumbing, occupancy certificates	Provided by seller, verified by conveyancer
Tax Registration	South African tax number (for future transactions)	SARS application process

Can you buy a property in South Africa without being physically present in the country?

Yes, you can complete the entire property purchase process remotely without ever setting foot in South Africa, making it exceptionally convenient for international buyers.

A qualified conveyancing attorney can act on your behalf using a valid power of attorney, handling all legal aspects of the transaction. Digital authentication through apostille or notarization is legally accepted for documents signed abroad, eliminating the need for personal presence.

Modern technology facilitates remote purchases through virtual property tours, digital document signing, and online banking transfers. Many estate agents now offer comprehensive virtual viewing services, including live video tours and detailed property reports.

The key requirement is ensuring all documents signed outside South Africa are properly authenticated through your country's apostille process or notarization by a recognized authority. Your conveyancer will guide you through specific authentication requirements for your jurisdiction.

Are there any common mistakes or pitfalls made by foreign buyers in South Africa?

Foreign buyers typically encounter five major pitfalls that can significantly delay or complicate their South African property purchases.

1. **FICA and Exchange Control Non-Compliance**: Failing to properly document fund sources or using unauthorized transfer channels can halt transactions completely2. **Inadequate Document Authentication**: Not properly apostilling or notarizing documents signed abroad leads to rejection by the Deeds Office3. **Unqualified Legal Representation**: Using unregistered or inexperienced conveyancers results in procedural errors and delays4. **Insufficient Title Verification**: Not properly checking for encumbrances, municipal debts, or title defects before purchase5. **Hidden Municipal Levies**: Overlooking outstanding rates, taxes, or sectional title levies that become the buyer's responsibility

These mistakes often stem from underestimating South Africa's strict regulatory compliance requirements or attempting to shortcut the established legal process. Working with experienced, registered professionals and allowing adequate time for proper documentation prevents most issues.

Many foreign buyers also fail to budget adequately for the full range of costs, expecting only the purchase price and basic legal fees while overlooking transfer duty, bank charges, and various compliance costs.

Are South African real estate agents trustworthy and reliable?

South African real estate agents are regulated professionals, but their trustworthiness varies significantly depending on their credentials, experience, and business practices.

The Estate Agency Affairs Board regulates all property practitioners, requiring registration, ongoing education, and professional indemnity insurance. However, regulation doesn't guarantee quality or ethical behavior, making agent selection crucial for foreign buyers.

Established agencies with strong market reputations generally provide more reliable service and better protection for international clients. Look for agents who are members of professional associations like the Institute of Estate Agents of South Africa and have specific experience with foreign buyer transactions.

The conveyancing attorney plays a more critical role than the estate agent in protecting your interests, as they handle the legal transfer and ensure compliance with all regulations. Choose your conveyancer independently rather than automatically accepting the agent's recommendation.

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

Will the legal system in South Africa protect my rights as a property buyer?

South Africa's legal system provides robust protection for property buyers through well-established property laws, regulated professionals, and clear title registration systems.

The country's property law framework, based on Roman-Dutch law principles, offers strong ownership rights and legal remedies for buyers. The Deeds Registry system provides secure title registration, while the Consumer Protection Act offers additional safeguards against unfair practices.

Conveyancing attorneys are licensed legal professionals bound by strict professional conduct rules and required to maintain professional indemnity insurance. They have a legal duty to protect client interests and can face serious penalties for misconduct or negligence.

The legal system includes established dispute resolution mechanisms, from ombud services for estate agents to courts with jurisdiction over property matters. International arbitration is also available for cross-border disputes involving significant property investments.

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 precautions should I take to ensure the process goes smoothly?

Taking specific precautions can prevent the majority of complications that foreign buyers encounter in South African property transactions.

First, engage a qualified, independent conveyancing attorney before signing any documents. Verify their registration with the Law Society and their experience with foreign buyer transactions. Never rely solely on the estate agent's legal recommendations.

Ensure strict compliance with FICA and South African Reserve Bank requirements from the outset. Prepare all documentation properly and maintain clear audit trails for fund sources. Any shortcuts in compliance create significant delays later in the process.

Request comprehensive property due diligence, including municipal rates clearance certificates, electrical and plumbing compliance certificates, and sectional title levy statements. These certificates should be current and obtained directly from relevant authorities.

Triple-check document authentication requirements for your jurisdiction if signing from abroad. Different countries have specific apostille or notarization requirements that must be followed precisely to avoid rejection by South African authorities.

How long does it typically take to buy a second property in South Africa?

The complete property purchase process in South Africa typically takes 8-12 weeks from signed Offer to Purchase to final title registration in your name.

The timeline breaks down into distinct phases: initial offer and acceptance (1-2 weeks), FICA compliance and bank setup (2-3 weeks), mortgage approval if required (2-4 weeks), fund transfer and legal preparation (2-3 weeks), and final registration (1-2 weeks).

Foreign buyers often experience slightly longer timeframes due to additional documentation requirements and international fund transfers. Remote purchases may add 1-2 weeks for proper document authentication and power of attorney preparation.

Factors that can extend the timeline include incomplete FICA documentation, delayed fund transfers, property title complications, or municipal clearance certificate delays. Starting the FICA process early and preparing all documentation in advance helps maintain the standard timeline.

Cash purchases typically complete faster than financed purchases, often within 6-8 weeks, since they eliminate the mortgage approval phase entirely.

What taxes, costs, and fees should I expect when purchasing property in South Africa?

Total costs for purchasing property in South Africa typically add 8-10% to the purchase price, covering various taxes, fees, and professional services.

Cost Category	Amount/Rate	Who Pays
Transfer Duty	Sliding scale on amounts above R1 million	Buyer
Conveyancer Fees	1-2% of purchase price plus VAT	Buyer
Deeds Office Registration	Approximately R750-R1,500	Buyer
Bank Charges	R2,000-R5,000 for transfers	Buyer
Estate Agent Commission	5-7% of purchase price	Seller (typically)
FICA Compliance Fees	R500-R2,000	Buyer
Property Inspection Costs	R1,500-R5,000	Buyer

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

Can you buy a second property in South Africa with cash?

Yes, cash purchases are fully permitted and often preferred by sellers in South Africa, offering several advantages including faster transaction completion and stronger negotiating position.

Cash buyers can typically complete purchases within 6-8 weeks compared to 10-12 weeks for financed purchases, since they eliminate the mortgage approval process entirely. This speed advantage often allows for better purchase price negotiations.

All cash funds must still be transferred through authorized South African banks to comply with exchange control regulations. You cannot bring large amounts of physical cash into the country or use unauthorized transfer channels, regardless of the payment method.

Cash purchases still require full FICA compliance and source of funds documentation. South African authorities scrutinize large cash transactions carefully to prevent money laundering, making proper documentation essential even for legitimate purchases.

The same legal processes apply to cash purchases, including conveyancer involvement, title searches, and property registration. The only difference is the absence of bank mortgage requirements and associated delays.

Is it possible for foreigners to get a mortgage for property in South Africa, and what are the rates and conditions?

Foreign nationals can obtain mortgages from South African banks, though with more restrictive terms than those available to residents and citizens.

South African banks typically limit foreign buyers to maximum loan-to-value ratios of 50%, meaning you must provide at least 50% of the purchase price as a deposit. Some banks may offer higher ratios for exceptional circumstances or high-net-worth individuals.

Mortgage interest rates for foreign buyers are generally similar to local rates, currently ranging from 8-12% as of September 2025, depending on the prime lending rate and your creditworthiness. Banks assess applications based on global income and credit history rather than local employment.

Approval requirements include comprehensive income documentation, credit reports from your home country, proof of employment or business ownership, and detailed asset declarations. The approval process typically takes 4-6 weeks and requires establishing a relationship with a South African bank.

Mortgage terms usually range from 10-20 years for foreign buyers, shorter than the 30-year terms often available to residents. Banks may also require higher deposit amounts and additional insurance coverage for non-resident borrowers.

Are there any restrictions on what property foreigners can or can't buy in South Africa?

Foreign buyers face virtually no restrictions on property types they can purchase in South Africa, enjoying the same ownership rights as South African citizens in most categories.

You can buy residential properties including houses, apartments, townhouses, and vacant residential land. Commercial properties such as office buildings, retail spaces, and industrial facilities are also available to foreign buyers without restrictions.

Agricultural land purchases currently face no legal restrictions for foreign buyers as of September 2025, though this remains a topic of ongoing political discussion. Government proposals for potential future restrictions on foreign agricultural land ownership have been discussed but not enacted.

Sectional title properties (similar to condominiums) are fully accessible to foreign buyers, including units in complexes with shared facilities and common areas. You receive full ownership rights and voting privileges in body corporate decisions.

The only practical limitations relate to certain strategic properties near military installations or sensitive government facilities, which apply equally to local and foreign buyers. These restrictions are rare and clearly marked in property listings.

Can buying property in South Africa lead to a path toward residency or citizenship?

Property ownership in South Africa does not provide any direct path to residency or citizenship, as the country does not offer investment-based immigration programs for real estate purchases.

Unlike countries that offer "golden visa" programs, South Africa requires foreign nationals to apply for standard residency permits through established immigration channels. These applications are assessed based on factors such as employment, business investment, retirement income, or family relationships—not property ownership.

Property ownership may support certain visa applications by demonstrating ties to South Africa, but it carries no automatic immigration benefits or preferential treatment in the application process. Each immigration category has specific requirements that must be met independently.

If you're interested in South African residency, you must apply through the Department of Home Affairs using appropriate visa categories such as work permits, business visas, retirement permits, or spouse/family visas. Property ownership might strengthen these applications but doesn't substitute for meeting the specific requirements.

Some foreign property owners do eventually qualify for residency through other means and find their property ownership advantageous, but this requires separate immigration processes entirely distinct from the property purchase.

Where do most foreigners tend to buy property in South Africa?

Foreign property buyers concentrate heavily in specific regions that offer lifestyle appeal, investment potential, and established expat communities.

Cape Town dominates foreign buyer activity, particularly in areas like the Atlantic Seaboard (Clifton, Camps Bay, Sea Point), the City Bowl, and southern suburbs (Constantia, Bishopscourt, Claremont). The Western Cape wine regions including Stellenbosch and Franschhoek also attract significant international investment.

Johannesburg's prime areas draw foreign buyers focused on business and investment opportunities, with Sandton, Rosebank, and Hyde Park being popular choices. These areas offer proximity to financial districts and established international business communities.

Durban and the KwaZulu-Natal North Coast appeal to buyers seeking beachfront properties and tropical climates. Areas like Umhlanga, Ballito, and the Dolphin Coast offer resort-style living with strong rental potential.

The Garden Route attracts retirees and lifestyle buyers, with towns like Knysna, Plettenberg Bay, and Hermanus offering coastal living and lower property prices than major cities. These areas particularly appeal to European buyers seeking temperate climates and outdoor activities.

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. How to Buy House South Africa - The AfricanVestor
2. Buying Property in South Africa as a Foreigner Complete Guide - BlackPen Immigration
3. Foreigners Buy Land South Africa - The AfricanVestor
4. Property Transfer Process - Ooba
5. Can a Foreigner Buy Property in South Africa - Private Property
6. Can a Foreigner Buy Property in South Africa - Migrate with Q
7. South Africa Real Estate Foreigner - The AfricanVestor
8. Buy Property in South Africa - South African Lawyer