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Transfer costs in South Africa can add up to 8-10% of your property purchase price when you factor in all fees and taxes.
The largest component is transfer duty tax, which follows a sliding scale that exempts properties up to R1,210,000 as of September 2025. Beyond this threshold, you'll pay between 3% and 13% depending on your property's value, plus attorney fees, deeds office registration costs, and various disbursements that typically range from R20,000 to R50,000 for most residential properties.
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Transfer costs in South Africa include transfer duty tax (0% to 13% based on property value), attorney fees (0.5% to 1% of purchase price), and additional charges for deeds office registration and disbursements.
Properties valued at R1,210,000 or less are exempt from transfer duty, while higher-value properties attract progressively higher rates up to 13% for purchases above R13,310,000.
| Cost Component | Typical Range | Example (R2M Property) |
|---|---|---|
| Transfer Duty Tax | 0% - 13% (sliding scale) | R37,000 |
| Attorney/Conveyancing Fees | 0.5% - 1% of purchase price | R23,000 - R27,000 |
| Bond Registration (if applicable) | Based on loan amount | R7,500 - R10,000 |
| Deeds Office Fees | R500 - R2,000 | R1,500 |
| Disbursements & FICA | R2,500 - R4,000 | R3,000 |
| Municipal Clearance | R1,500 - R3,000 | R2,000 |
| Total Estimated Costs | 8% - 10% of purchase price | R73,000 - R80,000 |
What is the property purchase price I use to calculate transfer costs?
The property purchase price is the base amount on which almost all transfer and registration costs in South Africa are calculated.
This purchase price is the agreed sale amount between buyer and seller, as stated in the deed of sale contract. In rare circumstances, SARS may apply a Special Value Determination if they believe the declared price is significantly below market value, but this typically only happens in suspicious transactions.
All major cost components—transfer duty tax, attorney fees, and bond registration costs—are calculated as percentages of this purchase price. The only costs not tied to the purchase price are fixed fees like deeds office charges and disbursements.
As of September 2025, this purchase price forms the foundation for calculating your total transfer budget, which typically ranges from 8% to 10% of the property value.
What transfer duty tax percentage applies to my purchase price right now?
Transfer duty tax in South Africa follows a sliding scale that increases with higher property values, as of September 2025.
Properties up to R1,210,000 are completely exempt from transfer duty tax. For properties above this threshold, the rates are: 3% on amounts between R1,210,001 and R1,663,800; 6% on amounts between R1,663,801 and R2,329,300; 8% on amounts between R2,329,301 and R2,994,800; 11% on amounts between R2,994,801 and R13,310,000; and 13% on any amount above R13,310,000.
For example, a R2,000,000 property would pay R37,000 in transfer duty: R13,614 (3% on the first bracket) plus R23,386 (6% on the remaining amount in the second bracket).
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Are there exemptions where transfer duty is not charged?
Yes, properties valued at R1,210,000 or less are completely exempt from transfer duty tax in 2025.
This exemption threshold was increased from previous years to help first-time buyers and make property ownership more accessible. The exemption applies to the full purchase price—if your property costs exactly R1,210,000, you pay zero transfer duty.
However, if your property costs even R1 above this threshold (R1,210,001), you'll pay transfer duty on the amount exceeding R1,210,000. There are no other exemptions for residential property purchases by individuals.
Special exemptions may apply for certain institutional buyers or specific transaction types, but these don't typically affect individual residential property purchases.
How much will the conveyancing attorney charge for the transfer?
Conveyancing attorney fees in South Africa are set by Law Society guidelines but are negotiable, typically ranging from 0.5% to 1% of the purchase price.
These fees scale down proportionally as property values increase. For a R1.5 million property, expect attorney fees between R23,000 and R27,000, excluding VAT and other charges.
The attorney handles all legal aspects of the property transfer, including title deed preparation, liaising with the deeds office, ensuring all conditions are met, and coordinating with bond attorneys if you're taking a home loan.
Always request a written fee quote from your attorney before proceeding, as fees can vary between firms and may include different services in their base rate.
What are the recommended guideline fees for conveyancers at my property price?
| Property Value Range | Typical Attorney Fee Range | Example Fee (Mid-Range) |
|---|---|---|
| R500,000 - R1,000,000 | R8,000 - R15,000 | R12,000 |
| R1,000,001 - R2,000,000 | R15,000 - R30,000 | R22,500 |
| R2,000,001 - R3,000,000 | R25,000 - R40,000 | R32,500 |
| R3,000,001 - R5,000,000 | R35,000 - R60,000 | R47,500 |
| R5,000,001 - R10,000,000 | R50,000 - R85,000 | R67,500 |
| Above R10,000,000 | 0.6% - 0.8% of purchase price | Varies by negotiation |
Are there additional VAT charges on the transfer, or is it exempt?
For standard property resales between individuals, VAT does not apply—you pay transfer duty instead, never both.
VAT only applies when purchasing directly from a VAT-registered developer or vendor. In these cases, you pay 15.5% VAT (as of May 2025) on the purchase price, but then no transfer duty is payable for residential properties.
Attorney fees and most other professional services do attract VAT at 15.5%, so factor this into your budget when calculating total transfer costs.
The key distinction is simple: resale properties attract transfer duty but no VAT, while new properties from developers attract VAT but no transfer duty.
How much should I budget for deeds office fees when registering?
Deeds office registration fees are relatively modest, typically ranging from R500 to R2,000 for most residential properties.
Higher-value properties may attract fees up to R3,853 or more, plus a lodgement fee of R50 per deed or document that needs to be registered, as of April 2025.
These fees cover the actual registration of your title deed in the government's property registry system. Unlike transfer duty or attorney fees, deeds office fees are fixed government charges that don't vary between attorneys.
The fees are payable directly to the deeds office through your conveyancing attorney and must be settled before registration can proceed.
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Are there bond registration costs if I'm taking a home loan?
Yes, bond registration costs are separate from property transfer costs and are calculated based on your home loan amount, not the purchase price.
Bond attorney fees follow a similar sliding scale to transfer attorneys—expect roughly R6,640 for bonds up to R500,000, with additional increments for each R50,000 above this amount.
For a typical R1.5 million home loan, bond registration costs typically range from R7,500 to R10,000, including attorney fees and deeds office charges for registering the mortgage bond.
These costs are unavoidable if you're financing your property purchase and must be paid upfront before the bond can be registered and funds released by the bank.
What are the typical disbursement fees and how much should I expect?
Disbursement fees cover various administrative costs and typically add R2,500 to R4,000 to your total transfer bill.
- Postage and petties: R300 to R700 for standard transactions, up to R1,150 for high-value properties
- FICA and ID verification checks: R350 to R460 per transaction
- Electronic document fees: Approximately R800 for complex transactions
- Search fees: R200 to R400 for title deed and municipal searches
- Courier and delivery costs: R150 to R300 depending on location
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Are municipal clearance figures payable upfront before transfer?
Yes, municipal clearance certificates are mandatory before any property transfer can proceed, and typically require upfront payment.
Expect to pay R1,500 to R3,000 for most municipalities to obtain this clearance certificate, which confirms that all rates, taxes, and municipal charges are paid up to date.
The seller is legally responsible for providing this clearance, but buyers sometimes agree to cover these costs as part of purchase negotiations. If there are arrears or high future municipal estimates, costs can be significantly higher.
This certificate must be obtained before transfer registration, and the payment is non-refundable even if the transaction fails to complete for other reasons.
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What deposits or upfront payments do I need before transfer starts?
Typical property deposits in South Africa range from 10% to 20% of the purchase price, especially when applying for a home loan.
All transfer costs—including transfer duty, attorney fees, deeds office charges, and disbursements—must be paid upfront before the transfer process can proceed to registration.
Banks typically require proof of these funds before approving your bond application. You'll need to demonstrate that you have both the deposit and all transfer costs available in addition to your loan amount.
Some attorneys may accept staged payments during the transfer process, but the full amount must be available before final registration at the deeds office.
What is my total estimated transfer cost for a specific property purchase?
| Property Value | Transfer Duty | Total Transfer Costs (8-10%) |
|---|---|---|
| R1,000,000 | R0 (exempt) | R80,000 - R100,000 |
| R1,500,000 | R8,700 | R120,000 - R150,000 |
| R2,000,000 | R37,000 | R160,000 - R200,000 |
| R3,000,000 | R90,000 | R240,000 - R300,000 |
| R5,000,000 | R310,000 | R400,000 - R500,000 |
| R10,000,000 | R860,000 | R800,000 - R1,000,000 |
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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.
Understanding transfer costs is crucial for budgeting your South African property purchase effectively.
The combination of transfer duty, attorney fees, and various registration charges typically adds 8% to 10% to your total property investment, with the transfer duty exemption providing significant savings for properties under R1,210,000.
Sources
- SARS - New Transfer Duty Rates Effective 1 April 2025
- NMA Law - 2025 Budget Speech Impact on Property Transfer Costs
- iGrow - Property Tax Updates Affecting Investors in 2025
- EWS Attorneys - Transfer Duty Threshold Adjustment
- Cape Town Lawyer - Costs of Transfer
- Ooba - Property Transfer Process
- VDM Law - Conveyancing and Property Transfer Fees
- Burger Huyser Attorneys - Conveyancing Fees in South Africa
- STBB - Deeds Registry Fee Increases April 2025
- RE/MAX - Property Transfer Costs in South Africa