South Africa Property ROI Calculator

Transfer Duty in South Africa uses a progressive bracket system. Transfer duty is levied by SARS on the acquisition of property in South Africa. It uses a sliding scale based on the purchase price. Commercial purchases from a VAT vendor typically attract 15% VAT instead of transfer duty — see the calculator when modelling commercial property. The current rates are: 0% on the first R1,210,000, 3% on R1,210,001 – R1,663,800, 6% on R1,663,801 – R2,329,300, 8% on R2,329,301 – R2,994,800, 11% on R2,994,801 – R13,310,000, 13% on amounts above R13,310,001.

When purchasing property in South Africa, typical closing costs include: Bond Attorney Fees, Deeds Office Bond Fee, Bank Initiation Fee, Bond Postage & Petties, Deeds Office Lodgement Fee (Bond), Transfer Attorney Fees, Deeds Office Transfer Fee, Transfer Postage & Petties, Deeds Office Lodgement Fee (Transfer). These are paid by the buyer at or before completion, in addition to the purchase price and Transfer Duty.

Ongoing costs for property owners in South Africa typically include: Municipal Rates & Taxes, Building Insurance, Maintenance & Repairs. These are annual costs that should be factored into your rental yield and cash flow calculations.

Capital Gains Tax (CGT) applies when you sell a property for more than you paid. CGT is calculated by including a portion of the capital gain in taxable income and applying the marginal income tax rate. Your primary residence is exempt from capital gains tax.