The cost of buying property in South Africa: taxes & fees
Buying property in South Africa involves several costs beyond the purchase price. Understanding these costs can help you budget effectively.
This guide outlines one-off and recurring expenses, along with an example calculation based on typical property prices in the country.
One-off Purchase Costs
When buying property in South Africa, you should be prepared for one-off costs that typically range between 7% and 10% of the property price. This includes transfer duty, legal fees, and registration costs.
- Transfer duty (varies depending on property price)
- Notary and registration fees (generally a few thousand rand)
- Legal fees (typically calculated as a percentage of the property price)
Transfer Duty
Transfer duty is a significant cost when purchasing property. It varies based on the property value and is calculated on a progressive scale. It’s advisable to check with an official source for the latest rates.
Legal and Conveyancing Fees
Legal fees for property transactions in South Africa can vary greatly but generally are around 1% to 2% of the property price. This fee covers the preparation of necessary documents and guidance through the process.
Example Calculation
For a typical property price of €353,500, estimating 8% for one-off costs (which could include all the aforementioned fees) means you could expect to pay around €28,280 in additional costs. This brings the total to approximately €381,780.
Recurring Ownership Costs
Once you own property in South Africa, be prepared for ongoing costs. These generally include property taxes, community or HOA fees, utilities, and insurance.
- Annual property tax (varies by region)
- Monthly community or condo fees (if applicable)
- Utilities such as water, electricity, and refuse collection
- Homeowners insurance (cost can vary considerably)
Mortgage Costs for Non-Residents
If you're a non-resident looking to finance your property, mortgages are available but may come with stricter lending criteria. Expect to provide a larger deposit compared to local buyers.
Frequently asked questions
What is transfer duty in South Africa?
Transfer duty is a tax paid when property is transferred to a new owner. It varies based on the property's value.
How much should I budget for legal fees?
Legal fees typically range from 1% to 2% of the property price, but it's wise to confirm with your attorney.
Are there recurring costs after buying a property?
Yes, typical recurring costs include property tax, utilities, insurance, and possibly community fees.
Can non-residents get a mortgage in South Africa?
Yes, but non-residents often face stricter criteria and may need to provide a higher deposit.
What total percentage should I budget for one-off costs?
Generally, budget around 7% to 10% of the property price for one-off costs.
This guide is general information, not legal, tax or immigration advice. Rules change — verify the current position with official sources and a qualified professional before acting. Last reviewed July 2026.