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
South Africa offers one of the most open property markets for foreign investors in Africa.
Non-residents can purchase residential, commercial, and agricultural properties with minimal restrictions, complete transactions remotely, and access financing up to 50% of the property value from local banks.
If you want to go deeper, you can check our pack of documents related to the real estate market in South Africa, based on reliable facts and data, not opinions or rumors.
Foreigners can legally buy property in South Africa without nationality restrictions, though they need to bring at least 50% cash from abroad if seeking financing.
The purchase process can be completed entirely remotely through conveyancing attorneys, with transfer duties ranging from 6-13% of the property value.
| Aspect | Requirement | Details |
|---|---|---|
| Foreign Ownership | Allowed | No nationality-based restrictions on property types |
| Minimum Cash | 50% of purchase price | Required if seeking mortgage; 100% for cash purchases |
| Physical Presence | Not required | Remote completion through conveyancing attorneys |
| Transfer Duty | 6-13% of value | Progressive tax scale based on property price |
| Mortgage Access | Up to 50% LTV | Available from South African banks for non-residents |
| Ownership Limits | None currently | No restrictions on number or size of properties |
| Bank Account | Required | Needed for mortgage payments and rental income |
Can foreigners legally buy property in South Africa?
Yes, foreigners can legally buy property in South Africa with very few restrictions as of September 2025.
The South African property market is one of the most open in Africa for international investors. Non-residents face no nationality-based restrictions when purchasing real estate.
Foreign buyers enjoy nearly the same property rights as South African citizens. The government maintains a welcoming stance toward international property investment, viewing it as beneficial for economic growth.
Current legislation allows foreigners to own property in their individual names or through companies. This legal framework has remained stable for years, providing confidence for international investors.
It's something we develop in our South Africa property pack.
Are there restrictions on the type of property a non-resident can purchase?
Non-residents can purchase all types of property in South Africa, including residential, commercial, and agricultural land.
Residential properties such as houses, apartments, and townhouses are freely available to foreign buyers. Commercial properties including office buildings, retail spaces, and industrial facilities can also be purchased without restriction.
Agricultural land purchases are currently permitted for foreigners, though proposed legislation may introduce future restrictions on large agricultural holdings. As of September 2025, these proposed changes have not been enacted into law.
Rural land, mixed-use developments, and vacant land for development are all accessible to international buyers. There are no zoning restrictions that specifically exclude foreign ownership.
The property purchase process and legal requirements remain the same regardless of property type or buyer nationality.
Do non-residents have to be physically present in South Africa to complete the purchase?
No, non-residents do not need to be physically present in South Africa to complete a property purchase.
The entire transaction can be handled remotely through qualified conveyancing attorneys who manage the legal transfer process. Digital signatures and notarized documents allow for complete remote completion.
Conveyancers act as intermediaries, handling all legal documentation, fund transfers, and Deeds Office registration on behalf of absent buyers. This system is well-established and widely used by international investors.
Remote purchases require proper documentation verification and compliance with exchange control regulations. All necessary approvals and registrations can be obtained without the buyer's physical presence.
Many foreign investors successfully complete multiple property transactions in South Africa without ever visiting the country during the purchase process.
What is the minimum amount of money a non-resident must bring into South Africa for a property purchase?
Non-residents must bring at least 50% of the property purchase price in foreign currency if they plan to obtain a mortgage.
For cash purchases, the full property price must be transferred from abroad through authorized dealers or South African banks. This foreign currency requirement ensures compliance with exchange control regulations.
The 50% minimum cash requirement applies specifically to mortgage applications, as South African banks typically limit non-resident financing to 50% of the property value. The remaining funds must come from verified foreign sources.
All foreign currency transfers must be properly documented with deal receipts to enable future repatriation of sale proceeds. These documents serve as proof of the original foreign investment.
Additional costs including transfer duties (6-13%), legal fees, and conveyancing charges typically add 8-10% to the total cash requirement beyond the property price.
Don't lose money on your property in South Africa
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Are there limits on how much land or how many properties a foreign buyer can own?
Currently, there are no legal limits on the number of properties or amount of land that foreign buyers can own in South Africa.
International investors can build substantial property portfolios without government restrictions on size, quantity, or total value. This unlimited ownership applies to all property types including residential, commercial, and agricultural land.
While proposed legislation has been discussed regarding restrictions on foreign agricultural land ownership, these measures have not been enacted as of September 2025. The current legal framework maintains open access for all property types.
Foreign buyers can own properties across multiple provinces and cities without geographic limitations. There are no residency requirements tied to property ownership levels.
This unrestricted ownership model positions South Africa as one of the most accessible African property markets for international investment.
What kind of taxes and transfer duties do non-residents have to pay when buying property in South Africa?
| Tax/Fee Type | Rate | Details |
|---|---|---|
| Transfer Duty | 6-13% | Progressive scale based on property value |
| Legal Fees | 2-3% | Conveyancing attorney charges |
| Compliance Costs | 1-2% | Documentation and registration fees |
| Municipal Rates | Ongoing | Annual property taxes to local municipality |
| Rental Income Tax | Variable | South African income tax on rental earnings |
| Capital Gains Tax | 7.5-15% | Withholding tax on sale proceeds for properties >R2 million |
| Sectional Title Levies | Monthly | Body corporate fees for apartments and townhouses |
How can non-residents transfer money into South Africa to pay for the property?
Non-residents must transfer funds through authorized dealers or South African banks into a conveyancer's trust account.
All money transfers require compliance with South African exchange control regulations and the buyer's home country reporting requirements. Banks and authorized dealers facilitate these transfers while ensuring regulatory compliance.
The conveyancing attorney typically provides specific banking details for the trust account where purchase funds must be deposited. These trust accounts provide legal protection for buyer funds during the transaction process.
A deal receipt must be obtained and retained as proof of foreign currency inflow. This document is essential for future repatriation of sale proceeds when the property is eventually sold.
Repatriation of funds when selling is permitted provided original inflow documentation is maintained and all South African tax obligations are settled. Proper documentation ensures smooth fund transfers both into and out of South Africa.
Can non-residents get a mortgage from a South African bank?
Yes, non-residents can obtain mortgages from South African banks, typically up to 50% of the property's value.
Major South African banks including Standard Bank, FNB, and Nedbank offer home loans to foreign buyers. The maximum loan-to-value ratio for non-residents is generally capped at 50%, requiring substantial cash deposits.
Mortgage applications require proof of income, credit history from the home country, and verification of the source of the deposit funds. Banks assess affordability based on foreign income converted to South African rand.
Interest rates for non-resident mortgages are typically higher than those offered to residents, reflecting the additional risk profile. Loan terms usually range from 10-20 years depending on the applicant's age and financial profile.
It's something we develop in our South Africa property pack.
Do non-residents need a South African bank account to buy and manage a property?
Yes, non-residents need a South African bank account, especially for mortgage repayments and rental income management.
South African banks offer non-resident accounts specifically designed for property investors. These accounts facilitate mortgage payments, utility bill payments, and rental income collection.
Opening a non-resident bank account requires proper documentation including passport, proof of address from the home country, and verification of income sources. The process can often be initiated remotely.
Property management becomes significantly easier with a local bank account for handling ongoing expenses such as municipal rates, insurance premiums, and maintenance costs. Rental income can be deposited directly into these accounts.
Non-resident accounts also provide access to South African banking services including online banking, debit cards, and investment products that can enhance the overall investment strategy.
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 legal documents and approvals are required for a non-resident to buy property in South Africa?
Non-residents need a standard offer to purchase agreement, proof of foreign funds, and identity verification documents.
Essential documentation includes a valid foreign passport, proof of address from the home country, and bank statements showing the source of purchase funds. These documents must often be apostilled or notarized.
The South African Reserve Bank may require approval for transactions above certain thresholds, though routine property purchases typically proceed without special permits. Conveyancing attorneys handle most regulatory requirements.
Tax clearance certificates and SARS transfer duty declarations are mandatory for Deeds Office registration. These ensure compliance with South African Revenue Service requirements.
Foreign exchange compliance documentation must be completed to satisfy exchange control regulations. This includes proper classification of the investment and future repatriation intentions.
Are there ongoing costs like municipal rates and levies that foreign buyers must budget for?
Yes, foreign property owners must pay ongoing municipal rates, sectional title levies, and income tax on rental earnings.
Municipal rates are annual property taxes paid to local municipalities, varying by location and property value. These rates fund local services including water, sanitation, and municipal infrastructure.
Sectional title properties such as apartments and townhouses incur monthly body corporate levies covering building maintenance, insurance, and shared facilities. These levies can range from R500-3000+ monthly depending on the development.
Rental income earned by non-residents is subject to South African income tax. Foreign owners must register with SARS and file annual tax returns for rental properties.
Additional ongoing costs include property insurance, maintenance, property management fees if using agents, and utility connections for water, electricity, and internet services.
When selling, are non-residents subject to capital gains tax and how is money repatriated?
Non-residents are subject to capital gains tax when selling South African property, with withholding tax applied to properties sold for more than R2 million.
Capital gains tax is calculated on the profit between purchase and sale prices, with withholding rates typically ranging from 7.5-15% depending on the seller's tax status. This tax is deducted from sale proceeds before transfer.
Sale proceeds can be repatriated to the buyer's home country provided all tax obligations are settled and original foreign inflow documentation is available. The deal receipt from the initial purchase serves as proof of foreign investment.
SARS clearance certificates must be obtained before fund repatriation, confirming that all South African tax liabilities have been met. This process typically takes 2-4 weeks after sale completion.
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.
South Africa offers one of the most accessible property markets in Africa for foreign investors, with minimal restrictions and established legal frameworks supporting international ownership.
Successful property investment requires proper planning for taxes, banking requirements, and ongoing costs, but the process is well-defined and can be completed entirely remotely.
Sources
- Nedbank - South African Property Investment for Non-Residents
- Blackpen Immigration - Buying Property in South Africa as a Foreigner
- The African Investor - Can Foreigners Buy Property in South Africa
- The African Investor - South Africa Process Timeline
- The African Investor - Foreigners Buy Land South Africa
- STBB - Buying Property in SA as a Non-Resident
- Etchells and Young - Buying Property as a Foreigner in South Africa
- Moonstone - Tax Implications of Property Transactions Involving Non-Residents