South Africa has one of the best Deeds Registries Systems in the world, which makes it very safe to purchase and sell property in this country. The Estate Agent is involved extensively whilst choosing a property and concluding a Deed of Sale. Once you find a suitable property, the Agent will prepare an Offer to Purchase, which is open for acceptance by the Seller for a certain period of time. The offer is irrevocable for the stipulated period, and if the offer is accepted by the Seller, it becomes a binding Contract.
The following taxes are payable by property owners in South Africa:
- Transfer duty payable prior to registration, which amount is calculated on the purchase price of the property;
- Property rates and taxes, payable annually or monthly and calculated on the municipal value of the property and a portion of which needs to be paid in advance before registration to obtain a rates clearance;
- Capital Gains Tax, calculated on the profit once the property is sold. For a natural person the rate is between 0-18% of the capital gain;
- The Conveyancer is liable to pay withholding tax of 7,5% of the proceeds of the sale for a property sold for more than R2,000,000.00 as an advance payment on Capital Gains Tax for non-resident Sellers.
Call Donna today to discuss your property needs on 0832991575.