Question 1

What is transfer duty in South Africa?

Accepted Answer

Transfer duty is a tax paid to SARS when you buy a property. The amount depends on the purchase price and follows a sliding scale — properties under R1.1 million are exempt.

Question 2

Who pays transfer duty — buyer or seller?

Accepted Answer

The buyer pays transfer duty. It must be paid to SARS within six months of the sale agreement date.

Question 3

Are new developments exempt from transfer duty?

Accepted Answer

Yes. When you buy directly from a VAT-registered developer, VAT (15%) is included in the price instead of transfer duty.

Question 4

What is the transfer duty threshold for 2025?

Accepted Answer

For the 2025/2026 tax year, no transfer duty is payable on properties priced at R1,100,000 or less.

Question 5

What other costs are due on property transfer?

Accepted Answer

In addition to transfer duty, you will pay conveyancing attorney fees, bond registration fees (if financing), and Deeds Office levies.

Transfer Duty Calculator — South Africa 2025

How transfer duty is calculated in South Africa

Ready to apply for a home loan?