The Cost of Buying a Home in South Africa: Fees and Taxes
Buying a home in South Africa comes with a set of one-off costs on top of the purchase price: transfer duty, conveyancing fees, deeds office charges and, if you borrow, bond registration costs. Together they typically add several percent to what you pay.
This guide sets out the current transfer duty bands, gives worked examples of total transfer costs, and explains who pays what, so you can budget before you make an offer.
Transfer duty: the main tax on buying
Transfer duty is a national tax paid by the buyer on most property purchases. The South African Revenue Service (SARS) sets the bands each year; for the year from 1 April 2026 the rates are unchanged from the previous year, and nothing is payable on properties up to R1,210,000.
Above that threshold the duty is charged on a sliding scale, reaching 13% on the portion of the price above R13,310,000. On a R2,000,000 home the duty works out at R33,786; on a R3,000,000 home it is about R107,000.
Rates can change at the annual Budget, so check the SARS transfer duty page before you commit.
- Up to R1,210,000: no transfer duty
- R1,210,001 to R1,663,800: 3% of the value above R1,210,000
- R1,663,801 to R2,329,300: R13,614 plus 6% of the value above R1,663,800
- R2,329,301 to R2,994,800: R53,544 plus 8% of the value above R2,329,300
- R2,994,801 to R13,310,000: R106,784 plus 11% of the value above R2,994,800
- Above R13,310,000: R1,241,456 plus 13% of the value above R13,310,000
Conveyancing fees and what a transfer really costs
In South Africa the seller chooses the conveyancing attorney, but the buyer pays the transfer fees. Fees follow a recommended sliding scale based on the purchase price, and they are negotiable.
Fee tables published by Cape Town conveyancing attorneys, effective from 1 August 2025, put the attorney fee on a R1,000,000 purchase at about R29,000 including VAT, with total transfer costs of roughly R34,000 once deeds office fees and small disbursements are added.
Because transfer duty kicks in higher up the scale, totals climb quickly: around R86,000 on a R2,000,000 purchase, R166,000 on R3,000,000 and about R410,000 on R5,000,000.
Bond costs if you need a mortgage
If you finance the purchase with a home loan (a bond), you pay a separate bond registration attorney appointed by the bank, plus the bank's own initiation and valuation charges. Bond registration fees follow a similar sliding scale to transfer fees, so budget for both sets of attorney costs on a financed purchase.
Sellers, for their part, cover bond cancellation on any existing loan, estate agent commission and outstanding municipal charges.
New builds: VAT instead of transfer duty
If you buy directly from a VAT-registered developer, the price includes VAT (currently 15%) and no transfer duty is payable; you never pay both. The advertised price of a new build is therefore the all-in price for tax, although conveyancing and bond costs still apply.
A quick budgeting rule of thumb
As a rough guide, allow 3% to 8% of the purchase price for taxes and fees on an existing home, with the percentage rising on more expensive properties because of the progressive duty bands. Ask the conveyancer for a written cost estimate before signing an offer to purchase; attorneys will prepare one on request.
Habio's South Africa buyer guides and area guides break these costs down alongside current listings if you want to see how the numbers play out in a specific town.
Frequently asked questions
How much is transfer duty on a R2 million home in South Africa?
R33,786 under the bands applying from 1 April 2026: R13,614 plus 6% of the value above R1,663,800. Homes up to R1,210,000 attract no transfer duty, according to SARS.
Who pays the conveyancing fees when buying in South Africa?
The buyer pays the transfer and bond registration fees, even though the seller appoints the transferring attorney. The seller pays estate agent commission and bond cancellation costs.
Do foreign buyers pay higher property taxes in South Africa?
No. Transfer duty, conveyancing fees and deeds office charges are the same for residents and non-residents. A withholding tax applies only when a non-resident later sells for more than R2 million.
When must transfer duty be paid?
Within six months of the date of acquisition, after which SARS charges interest. In practice the conveyancer collects it from the buyer and pays SARS before the deeds office registers the transfer.
Sources
This article is general information, not legal, tax or financial advice. Markets and rules change — verify the current position with official sources before acting. Published 2 August 2026.