How to invest in property 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, Nigeria, Ghana, 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.

Is it legal and easy for foreigners to buy property in South Africa?

Yes, it is completely legal for foreigners to buy property in South Africa without any nationality-based restrictions.

The South African government welcomes foreign property investment and treats all international buyers equally under the law. Both individuals and foreign-registered entities can purchase residential and commercial properties throughout the country.

The process is considered straightforward and well-regulated, with the main complexities arising from compliance with exchange control regulations rather than ownership restrictions. Many foreign buyers successfully complete transactions each year, and the legal framework is designed to protect both domestic and international property investors.

As of June 2025, South Africa remains one of the most accessible property markets for foreigners in Africa, with established procedures and professional services to support international buyers.

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

What types of properties can foreigners buy, and are there any restrictions or exceptions?

Foreigners can purchase residential and commercial properties without restrictions in South Africa.

This includes apartments, houses, townhouses, office buildings, retail spaces, and industrial properties. There are no limitations on the number of properties a foreigner can own or the total value of their property portfolio.

The only area with potential restrictions involves agricultural land, though no specific laws currently prevent foreign ownership. Some policy discussions have occurred regarding agricultural land ownership, but as of mid-2025, these remain proposals rather than enacted legislation.

All foreign buyers are treated equally regardless of their nationality, and there are no special requirements or different procedures based on the buyer's country of origin.

Foreigners also have the same property rights as South African citizens once they complete the purchase and registration process.

Do I need to be physically in South Africa to purchase a property, or can I do it remotely?

You do not need to be physically present in South Africa to purchase property - the entire process can be completed remotely.

This is accomplished through a power of attorney system, where you appoint a local representative to act on your behalf during the transaction. All necessary documents can be notarized and apostilled in your home country to meet South African legal requirements.

Many international buyers successfully complete property purchases without ever visiting South Africa, though a personal inspection visit is recommended to evaluate the property and local area firsthand.

The remote buying process requires proper document authentication and compliance with exchange control regulations, but these procedures are well-established and routinely handled by South African conveyancers and real estate professionals.

You'll need to work with a qualified conveyancer who will handle the legal transfer process and ensure all documentation meets the requirements of the South African Deeds Office.

What are the exact steps involved in buying a property from start to finish in South Africa?

Step	Action Required	Timeline
1. Property Search	Work with registered real estate agent or search online platforms	Variable
2. Offer to Purchase	Submit legally binding offer with price, terms, and conditions	1-2 days
3. Due Diligence	Property inspection, ownership verification, legal status check	1-2 weeks
4. FICA Compliance	Provide identity verification under Financial Intelligence Centre Act	1 week
5. Banking Setup	Open South African bank account for payments and transfers	1-2 weeks
6. Financing	Secure mortgage approval or arrange cash transfer	4-6 weeks
7. Conveyancer	Appoint qualified conveyancer for legal transfer process	1 week
8. Fund Transfer	Move money via authorized dealer, comply with exchange controls	1-2 weeks
9. Registration	Property registered in your name at Deeds Office, receive title deed	2-4 weeks

Which documents are mandatory for a foreign buyer, and which ones are optional?

Foreign buyers must provide specific mandatory documents to comply with South African regulations.

**Mandatory Documents:**- Certified copy of passport with valid visa stamps- Proof of residential address (utility bill or bank statement not older than 3 months)- Proof of income or recent bank statements from your home country- South African tax number if previously issued- Notarized and apostilled documents if signed abroad- FICA compliance documentation for identity verification**Optional Documents (may be requested for mortgages):**- Comprehensive statement of assets and liabilities- Marriage certificate or antenuptial contract if applicable- Previous mortgage statements if you own property elsewhere- Employment verification letters- Additional financial references

The mandatory documents ensure compliance with anti-money laundering regulations and exchange control requirements, while optional documents may strengthen your mortgage application or expedite the approval process.

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

Can foreigners get a mortgage in South Africa, and under what conditions and rates?

Foreigners can apply for mortgages from South African banks, though stricter lending criteria apply compared to local residents.

Non-residents are typically limited to a maximum 50% loan-to-value ratio, meaning you must provide at least a 50% cash deposit. This is significantly higher than the deposit requirements for South African citizens, who may qualify for mortgages with deposits as low as 10-20%.

As of June 2025, interest rates for foreign buyers are generally higher than the prime rate. With the prime rate around 11.25%, foreigners may face rates ranging from 12-15% depending on their risk profile and negotiation power with the bank.

Banks require a certificate from the South African Reserve Bank, comprehensive proof of income and assets, and may insist you maintain a local bank account. Some institutions specialize in non-resident lending and may offer more competitive terms.

The mortgage approval process typically takes 4-6 weeks, and you'll need to demonstrate stable income, good credit history, and sufficient funds for the deposit and transaction costs.

What are the full costs involved—taxes, legal fees, agent fees, and anything else I should budget for?

Cost Category	Rate/Amount	Details
Transfer Duty	0-13% sliding scale	Exempt below R1.1 million, then 3-13% on remaining value
Conveyancing Fees	R15,000-R50,000+	Legal fees for transfer process, varies by property value
Bond Registration	R10,000-R30,000	Additional legal fees if taking a mortgage
Bank Fees	1-2% of loan	Mortgage origination and account setup costs
Compliance Certificates	R3,000-R8,000	Electrical, plumbing, building certificates required
Agent Commission	5-7% of price	Usually paid by seller but may affect negotiation
Insurance/Rates	Variable	Property insurance and municipal rates from transfer

Total acquisition costs typically range from 8-10% above the purchase price, not including ongoing costs like property taxes and insurance.

Is it possible to buy property in cash, and are there any advantages or drawbacks to doing that?

Yes, buying property with cash is possible and relatively common among foreign investors in South Africa.

Advantages include faster transaction completion since no mortgage approval is needed, potentially better price negotiation power with sellers, and elimination of interest payments and bank fees. Cash buyers often have stronger offers that sellers prefer, especially in competitive markets.

However, cash purchases require strict compliance with exchange control regulations for large fund transfers. You must properly document the source of funds and transfer them through authorized dealers to ensure future repatriation is possible.

The main drawback is the need to transfer substantial amounts of foreign currency, which may involve unfavorable exchange rates and transfer fees. Additionally, you lose the potential leverage benefits that mortgages can provide for investment returns.

Cash buyers must still follow the same legal procedures and documentation requirements, but can often complete transactions 4-6 weeks faster than financed purchases.

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 long does the whole buying process usually take from offer to ownership?

The complete property buying process in South Africa typically takes 2-3 months from signing the Offer to Purchase to receiving the registered title deed.

This timeline assumes all documents and funds are properly prepared and no complications arise during the due diligence or transfer process. Cash purchases may complete slightly faster, potentially within 6-8 weeks, while mortgage-financed purchases often take the full 2-3 months due to bank approval requirements.

Factors that can extend the timeline include incomplete documentation, delays in fund transfers, issues discovered during property inspections, or backlogs at the Deeds Office during busy periods.

The most time-sensitive elements are mortgage approval (4-6 weeks), exchange control compliance for fund transfers (1-2 weeks), and the final registration process at the Deeds Office (2-4 weeks).

Foreign buyers purchasing remotely should allow additional time for document authentication and international communication, potentially adding 1-2 weeks to the standard timeline.

How reliable are real estate agents in South Africa, and what should I watch out for?

South Africa has a regulated real estate sector, but quality and reliability vary significantly among agents.

Always use agents registered with the Property Practitioners Regulatory Authority (PPRA), which replaced the Estate Agency Affairs Board in 2022. Registered agents must meet professional standards and carry professional indemnity insurance.

Warning signs to avoid include unregistered or unlicensed agents, those making unrealistic promises about returns or market conditions, agents with poor local market knowledge, and those who refuse to provide written agreements or references.

Reliable agents should provide clear market analysis, transparent fee structures, proper documentation for all transactions, and be willing to connect you with qualified conveyancers and other professionals.

Always verify agent credentials through the PPRA website and ensure all agreements are reviewed by your conveyancer before signing. The best agents have strong local networks and can provide references from previous foreign clients.

What are the most common mistakes foreign buyers make and how can I avoid them?

The most frequent mistakes involve inadequate due diligence and misunderstanding of exchange control regulations.

**Common Mistakes to Avoid:**1. **Using unqualified professionals** - Always verify credentials of agents, conveyancers, and financial advisors2. **Ignoring exchange control rules** - Improper fund transfers can prevent future repatriation3. **Skipping property inspections** - Remote buyers especially need thorough professional inspections4. **Overlooking tax implications** - Understand both South African and home country tax obligations5. **Assuming property grants residency** - Real estate ownership doesn't provide immigration benefits6. **Inadequate title verification** - Ensure clear title and municipal compliance before purchase7. **Poor location research** - Understand local market conditions, crime rates, and infrastructure

Avoid these mistakes by engaging reputable professionals, conducting comprehensive due diligence, and taking time to understand local regulations before committing to any purchase.

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

Can owning property in South Africa lead to residency or citizenship, and if so, how?

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

South Africa does not operate a "golden visa" or citizenship-by-investment program linked to real estate purchases. Residency must be obtained through separate immigration channels such as work permits, retirement visas, business investment visas, or family reunification.

However, property ownership may support certain visa applications. For example, retirees applying for temporary residence may use property ownership to demonstrate ties to South Africa and financial stability, but the property itself is not sufficient for visa approval.

The retirement visa requires proof of pension income of at least R37,000 per month as of 2025, while business visas require substantial business investment beyond property purchases.

Property ownership can demonstrate commitment to South Africa in visa applications, but immigration decisions are based primarily on other criteria such as income, skills, and contribution to the economy rather than real estate investment.

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. Private Property - Can a Foreigner Buy Property in South Africa
2. TheAfricanVestor - South Africa Real Estate for Foreigners
3. TheAfricanVestor - Can Foreigners Buy Property in South Africa
4. Nedbank - Property Investment for Non-Residents
5. Adams & Adams - Non-Resident Property Guide
6. Landlords Association - Legal Process of Buying Property
7. BlackPen Immigration - Complete Guide for Foreigners
8. Expatica - Getting a Mortgage in South Africa
9. MSC Notaries - Buying Property in South Africa
10. Jawitz Properties - Document Checklist