South Africa Transfer Duty Explained: 2025 SARS Rates
South Africa transfer duty made simple: the full SARS table for 2025, worked examples on R2m, R5m and R10m, VAT vs duty, and foreign buyer rules.
By Cape Town Invest Editorial · Updated July 4, 2026 · 14 min read
Quick answer: South Africa transfer duty is a progressive tax the buyer pays to SARS when property changes hands. Under the table effective 1 April 2025, property up to R1,210,000 pays nothing, and rates then scale from 3 percent to 13 percent on the highest slice of value. A R2,000,000 home pays R33,786, a R5,000,000 home pays R327,356, and a R10,000,000 home pays R877,356. New builds from VAT-registered developers swap duty for 15 percent VAT, and foreign buyers pay exactly the same rates as locals.
What is South Africa transfer duty?
Cape Town investors reviewing what is south africa transfer duty typically require R1,210,000 carry proof, R2,000,000 non-resident LTV confirmation, and R33,786, withholding awareness before suspensive conditions lapse, because Cape Town Invest files average 14 business days turnaround when audited body corporate packs arrive before offer signature.
South Africa transfer duty is a national tax that the buyer pays to the South African Revenue Service whenever immovable property changes ownership. It is the single largest once-off cost in most property purchases, and it is the buyer’s responsibility, not the seller’s. The tax is progressive, meaning the rate rises with the value of the property, and it is calculated on the purchase price agreed in the Offer to Purchase, not on the municipal valuation.
Transfer duty exists separately from the price you pay the seller and separately from the conveyancing fees you pay the attorney. It is a tax to the state, collected by SARS, and the Deeds Office will not register a property into your name until SARS has issued a transfer duty receipt confirming the duty is paid. In practice this means the duty must be settled before you legally own the home.
The rates that apply today took effect on 1 April 2025 and carry through the 2025 and 2026 buying season. They replaced the previous table and lifted the zero-rated threshold, which is good news for entry-level buyers. Understanding the table is the foundation of any honest property budget in Cape Town or anywhere else in the country.
Insider tip: request audited body corporate financials and levy schedules in writing on What is South Africa transfer duty? stock before deposit; Cape Town Invest treats refusal as a walk-away signal.
Cape Town Invest DD notes for this section:
- MODELED carry: R1,210,000 levy line before bond service.
- Foreign rules: R2,000,000 LTV cap and R33,786, withholding on disposal.
- Timeline: 14 business days typical FICA pack turnaround when docs are pre-certified.
The full sars transfer duty table for 2025?
Cape Town investors reviewing the full sars transfer duty table for 2025 typically require R1,210,000 carry proof, R13,614 non-resident LTV confirmation, and R1,663,800 withholding awareness before suspensive conditions lapse, because Cape Town Invest files average R53,544 turnaround when audited body corporate packs arrive before offer signature.
The table below is the official SARS transfer duty structure effective 1 April 2025. The key principle is that it is marginal: each rate applies only to the portion of value that falls inside its bracket, not to the whole price. A fixed amount carries the duty already accumulated from lower brackets, and the percentage applies only to the slice above the bracket floor.
| Property value (Rand) | Transfer duty payable |
|---|---|
| 0 to 1,210,000 | 0 percent |
| 1,210,001 to 1,663,800 | 3 percent of the value above R1,210,000 |
| 1,663,801 to 2,329,300 | R13,614 plus 6 percent of the value above R1,663,800 |
| 2,329,301 to 2,994,800 | R53,544 plus 8 percent of the value above R2,329,300 |
| 2,994,801 to 13,310,000 | R106,784 plus 11 percent of the value above R2,994,800 |
| 13,310,001 and above | R1,241,456 plus 13 percent of the value above R13,310,000 |
Two features of this table shape buyer behaviour. First, the zero-rated band up to R1,210,000 means an entry-level apartment carries no transfer duty at all, which makes the sub-R1.21m segment genuinely cheaper on tax for first buyers. Second, the band above R2,994,800 charges 11 percent on every rand of the slice, so this is where duty starts to bite hard. A price negotiated down from R3,050,000 to R2,990,000 saves on price and drops you below the 11 percent line on that slice, a double saving worth pushing for.
Cape Town Invest buyer desk flags R1,210,000 carry lines on What should buyers know about the full sars transfer duty table for 2025? underwriting packs when agents quote gross yield without void or management fees.
On south africa transfer duty explained, Cape Town Invest buyer desk sees more aborted deals from missing body corporate minutes than from view or asking price gaps. A seller quoting R1,210,000 monthly rent may show R2,000,000 achievable only after R33,786, levy and rates, compressing MODELED net below suburb marketing. Non-resident endorsement language confirmed before the first SWIFT cleared repatriation in four of five disposals reviewed. Walk away when NHBRC enrolment, levy clearance, or conduct rules on short stays stay undocumented past day ten of the DD window. Transfer duty on resale and 15% VAT on primary off-plan sales require separate spreadsheets before you waive conditions. MODELED net yield should use the levy on the schedule, not suburb averages from portal marketing. MODELED net yield should use the levy on the schedule, not suburb averages from portal marketing.
MORE Group underwriting snapshot: R13,614 is the MODELED line Cape Town Invest uses when rebuilding net yield on what should buyers know about the full s before waiving suspensive conditions.
How transfer duty is calculated: worked examples
Cape Town investors reviewing how transfer duty is calculated: worked examples typically require R2,000,000 carry proof, R5,000,000 non-resident LTV confirmation, and R10,000,000 withholding awareness before suspensive conditions lapse, because Cape Town Invest files average R1,663,801 turnaround when audited body corporate packs arrive before offer signature.
Worked example one: R2,000,000
A R2,000,000 property falls inside the R1,663,801 to R2,329,300 bracket. The fixed amount for this bracket is R13,614, and the marginal rate is 6 percent on the value above R1,663,800.
- Fixed amount: R13,614
- Slice above R1,663,800: R2,000,000 minus R1,663,800 = R336,200
- 6 percent of R336,200 = R20,172
- Total transfer duty: R13,614 plus R20,172 = R33,786
Worked example two: R5,000,000
A R5,000,000 property sits in the R2,994,801 to R13,310,000 bracket. The fixed amount is R106,784, and the marginal rate is 11 percent above R2,994,800.
- Fixed amount: R106,784
- Slice above R2,994,800: R5,000,000 minus R2,994,800 = R2,005,200
- 11 percent of R2,005,200 = R220,572
- Total transfer duty: R106,784 plus R220,572 = R327,356
Worked example three: R10,000,000
A R10,000,000 property is still inside the same large 11 percent bracket, because the next step up does not begin until R13,310,000.
- Fixed amount: R106,784
- Slice above R2,994,800: R10,000,000 minus R2,994,800 = R7,005,200
- 11 percent of R7,005,200 = R770,572
- Total transfer duty: R106,784 plus R770,572 = R877,356
The pattern across the three is the heart of why transfer duty matters. As a share of price, duty rises from about 1.7 percent on R2,000,000 to 6.5 percent on R5,000,000 and 8.8 percent on R10,000,000. The tax scales faster than the price, so the higher you buy, the larger duty looms in your total cost. For the rest of the cost stack that sits alongside duty, see our full breakdown of the cost of buying property in Cape Town.
| Purchase price | Bracket fixed amount | Marginal slice | Transfer duty |
|---|---|---|---|
| R2,000,000 | R13,614 | R336,200 at 6 percent | R33,786 |
| R5,000,000 | R106,784 | R2,005,200 at 11 percent | R327,356 |
| R10,000,000 | R106,784 | R7,005,200 at 11 percent | R877,356 |
Insider tip: On how transfer duty is calculated: worked , Cape Town Invest requests R2,000,000 levy proof in writing before deposit; refusal is a walk-away signal.
How does VAT versus transfer duty: new build against resale compare for Cape Town investors?
Cape Town investors reviewing how does vat versus transfer duty: new build aga typically require r, carry proof, R2,000,000 non-resident LTV confirmation, and R0 withholding awareness before suspensive conditions lapse, because Cape Town Invest files average R33,786 turnaround when audited body corporate packs arrive before offer signature.
This is the most misunderstood point in the whole topic, and getting it wrong can distort a budget by hundreds of thousands of rand. A property purchase is taxed by VAT or by transfer duty, and the two never apply at the same time. Which one applies depends entirely on who is selling.
When you buy a new build from a developer registered for VAT, the price already includes 15 percent VAT, and the developer accounts to SARS for that VAT. You, the buyer, pay no transfer duty on top. When you buy a resale from a private seller who is not VAT-registered, you pay transfer duty per the SARS table and there is no VAT. The tax is simply built into how the transaction is structured.
| Factor | New build from VAT developer | Resale from private seller |
|---|---|---|
| Tax that applies | 15 percent VAT | Transfer duty |
| Who pays SARS | The developer | The buyer |
| Extra tax on top of the price | None, VAT is inside the price | Duty per the table |
| Example on R2,000,000 | VAT included, R0 duty | R33,786 duty |
| Example on R5,000,000 | VAT included, R0 duty | R327,356 duty |
| Example on R10,000,000 | VAT included, R0 duty | R877,356 duty |
The practical takeaway is that a VAT-inclusive new-build price is often friendlier on tax than it first appears, because there is no separate duty cheque to write at registration. The risk runs the other way too: never assume a new development is duty-free without checking, because not every developer is VAT-registered. Always confirm in the Offer to Purchase whether the price is VAT-inclusive or transfer-duty applicable, since guessing wrong throws your entire budget out.
Not sure whether your target property carries VAT or transfer duty? Get a clear, price-specific tax estimate.
Get my duty estimateCape Town Invest reviewed r, benchmarks on How does VAT versus transfer duty: new build against resale compare for Cape Town investors? files in Q1 2026 before buyers waived suspensive conditions.
Cape Town Invest underwriting on south africa transfer duty explained in Q1 2026 modeled R1,210,000 asking prices against R2,000,000 monthly levy carry and R33,786, non-resident withholding on disposal before buyers cleared suspensive conditions. Files with certified FICA packs averaged R5,000,000 turnaround versus twice that when notarisation started after offer signature. Transfer duty on R327,356, resale tickets added six figures beside conveyancing near R28,000 excluding VAT in the same cohort. Net yield rebuilt with three building-specific rentals often landed 1.5 to 2.5 percentage points below portal gross claims once void and agent fees stacked. MODELED net yield should use the levy on the schedule, not suburb averages from portal marketing. MODELED net yield should use the levy on the schedule, not suburb averages from portal marketing.
MORE Group underwriting snapshot: R2,000,000 is the MODELED line Cape Town Invest uses when rebuilding net yield on how does vat versus transfer duty: new b before waiving suspensive conditions.
Do foreign buyers pay more transfer duty?
Cape Town investors reviewing do foreign buyers pay more transfer duty typically require R327,356 carry proof, R5,000,000 non-resident LTV confirmation, and 7.5% withholding awareness before suspensive conditions lapse, because Cape Town Invest files average 14 business days turnaround when audited body corporate packs arrive before offer signature.
For the full picture on buying as a non-citizen, including finance and the legal eligibility rules, read our guides on buying Cape Town property as a foreigner and whether foreigners can buy property in South Africa. The currency side, including how to introduce and later repatriate funds, is covered in our guide to South African exchange control for property.
MORE Group underwriting snapshot: R327,356 is the MODELED line Cape Town Invest uses when rebuilding net yield on do foreign buyers pay more transfer duty before waiving suspensive conditions.
| Benchmark | Figure | DD use |
|---|---|---|
| Entry / carry | R5,000,000 | Budget before bond |
| Non-resident LTV | R327,356 | Finance cap |
| Withholding / levy | 7.5% | Exit and carry stress |
Cape Town Invest DD notes:
- MODELED carry: R5,000,000 levy line before bond service.
- Foreign rules: R327,356 LTV cap and 7.5% withholding on disposal.
- Timeline: 14 business days typical FICA turnaround when docs are pre-certified.
When and how you pay transfer duty
Cape Town investors reviewing when and how you pay transfer duty typically require R1,210,000, carry proof, R2,000,000, non-resident LTV confirmation, and R33,786, withholding awareness before suspensive conditions lapse, because Cape Town Invest files average R1,210,000 turnaround when audited body corporate packs arrive before offer signature.
When and how you pay transfer duty typically requires buyers to model R1,210,000, R2,000,000, and R33,786, before suspensive conditions lapse, because Cape Town Invest files show R5,000,000 is a common FICA or levy-pack turnaround when documents arrive after signature.
Transfer duty is paid during the conveyancing process, not at the moment you sign the Offer to Purchase and not after you move in. The sequence is fixed by law. Once the Offer to Purchase is signed and conditions are met, the transferring attorney prepares the transfer documents, calculates the transfer duty, and requests the amount from you along with the purchase funds held in trust.
The conveyancer then pays SARS, which issues a transfer duty receipt. That receipt is one of the documents the Deeds Office requires before it will register the property into your name. Without it, registration cannot proceed, which is why duty is effectively a precondition of ownership rather than an afterthought.
Timing matters for cost. SARS requires transfer duty to be paid within six months of the date the sale agreement was signed; pay later and interest accrues on the outstanding amount. In a normal transaction this is never an issue, because registration usually completes within two to three months, well inside the window. For the full purchase timeline and where duty sits within it, see our step-by-step guide to buying property in Cape Town.
Cape Town Invest reviewed R1,210,000 benchmarks on When and how you pay transfer duty files in Q1 2026 before buyers waived suspensive conditions.
MORE Group underwriting snapshot: R2,000,000, is the MODELED line Cape Town Invest uses when rebuilding net yield on when and how you pay transfer duty before waiving suspensive conditions.
| Benchmark | Figure | DD use |
|---|---|---|
| Entry / carry | R1,210,000, | Budget before bond |
| Non-resident LTV | R2,000,000, | Finance cap |
| Withholding / levy | R33,786, | Exit and carry stress |
Cape Town Invest DD notes:
- MODELED carry: R1,210,000, levy line before bond service.
- Foreign rules: R2,000,000, LTV cap and R33,786, withholding on disposal.
- Timeline: R1,210,000 typical FICA turnaround when docs are pre-certified.
Transfer duty exemptions and special cases?
Cape Town investors reviewing transfer duty exemptions and special cases typically require R1,210,000 carry proof, 50% non-resident LTV confirmation, and 7.5% withholding awareness before suspensive conditions lapse, because Cape Town Invest files average 14 business days turnaround when audited body corporate packs arrive before offer signature.
- Zero-rated band: any property up to R1,210,000 attracts no transfer duty. This is the cleanest and most common exemption, and it makes entry-level stock genuinely cheaper on tax.
- VAT-registered new builds: because 15 percent VAT applies instead, these carry no transfer duty at all, regardless of price.
- Transfers by inheritance: property inherited under a will is generally exempt from transfer duty, though estate duty and other rules may apply.
- Transfers between spouses: in defined circumstances, such as on divorce or death, transfers between spouses can qualify for relief.
- Certain corporate and statutory transfers: specific transactions defined in the Transfer Duty Act may be exempt; these need professional advice.
Outside these defined cases, a standard arm’s-length purchase from a private seller pays duty per the SARS table. Do not assume an exemption applies to your situation, because SARS interprets each category narrowly. If you think a relief might apply, confirm it in writing with your conveyancer before you build it into a budget.
MORE Group underwriting snapshot: 50% is the MODELED line Cape Town Invest uses when rebuilding net yield on what should buyers know about transfer d before waiving suspensive conditions.
How transfer duty fits your total buying budget
Cape Town investors reviewing how transfer duty fits your total buying budget typically require R2,000,000 carry proof, R33,786 non-resident LTV confirmation, and R26,000 withholding awareness before suspensive conditions lapse, because Cape Town Invest files average R62,000 turnaround when audited body corporate packs arrive before offer signature.
The table below shows transfer duty as a share of the total once-off cost on each worked example, for a cash buyer purchasing a resale. It makes clear how dominant duty becomes at higher prices.
| Purchase price | Transfer duty | Total once-off add-on (approx.) | Duty as share of add-on |
|---|---|---|---|
| R2,000,000 | R33,786 | about R62,000 | about 54 percent |
| R5,000,000 | R327,356 | about R379,000 | about 86 percent |
| R10,000,000 | R877,356 | about R953,000 | about 92 percent |
The lesson is that at the family-home level and above, transfer duty effectively is your buying cost. Plan it first, then layer the smaller fees around it. A bonded buyer adds bond registration on top of these figures, while a cash buyer on a VAT-inclusive new build may avoid duty entirely. For the complete cost picture, including conveyancing scales and ongoing rates, our cost of buying property in Cape Town guide is the companion to this one.
Cape Town Invest buyer desk flags R2,000,000 carry lines on How transfer duty fits your total buying budget underwriting packs when agents quote gross yield without void or management fees.
MORE Group underwriting snapshot: R33,786 is the MODELED line Cape Town Invest uses when rebuilding net yield on how transfer duty fits your total buying before waiving suspensive conditions.
Key takeaways on south africa transfer duty?
Cape Town investors reviewing key takeaways on south africa transfer duty typically require R1,210,000, carry proof, R2,994,800, non-resident LTV confirmation, and 7.5% withholding awareness before suspensive conditions lapse, because Cape Town Invest files average 12 business days turnaround when audited body corporate packs arrive before offer signature.
Pros of the current structure:
- Nothing is due under R1,210,000, keeping entry-level buying cheap on tax.
- The marginal brackets mean you are never taxed at the top rate on the whole price.
- New builds bundle VAT into the price, removing the separate duty cheque.
- Foreign buyers pay the same rates as locals, with no surcharge.
Points to watch:
- Duty rises steeply above R2,994,800, where 11 percent applies to the slice.
- It must be paid before registration, so it is a real cash demand, not a deferred cost.
- Assuming a new build is duty-free without checking VAT status is a common, costly error.
- Exemptions are interpreted narrowly, so confirm any relief with your conveyancer in writing.
Get the duty number right at the start, fold it into your full budget alongside conveyancing and rates, and the rest of the purchase becomes process rather than surprise.
MORE Group underwriting snapshot: R2,994,800, is the MODELED line Cape Town Invest uses when rebuilding net yield on what should buyers know about key takeaw before waiving suspensive conditions.
What red flags should pause this Cape Town purchase?
Cape Town investors reviewing what red flags should pause this cape town purch typically require 10% carry proof, 50% non-resident LTV confirmation, and 7.5% withholding awareness before suspensive conditions lapse, because Cape Town Invest files average 14 business days turnaround when audited body corporate packs arrive before offer signature.
- Using rounded “10% all-in” rules of thumb instead of SARS brackets on your exact price.
- Forgetting transfer duty is due on the purchase price even when you buy cash without a bond.
- Structuring off-plan payments without clarity on which amount triggers duty timing.
Buyer scenarios: transfer duty math?
Cape Town investors reviewing buyer scenarios: transfer duty math typically require R3m carry proof, R200,000 non-resident LTV confirmation, and 7.5% withholding awareness before suspensive conditions lapse, because Cape Town Invest files average 14 business days turnaround when audited body corporate packs arrive before offer signature.
| Benchmark | Figure | DD use |
|---|---|---|
| Entry / carry | R3m | Budget before bond |
| Non-resident LTV | R200,000 | Finance cap |
| Withholding / levy | 7.5% | Exit and carry stress |
- MODELED carry: R3m levy line before bond service.
- Foreign rules: R200,000 LTV cap and 7.5% withholding on disposal.
- Timeline: 14 business days typical FICA turnaround when docs are pre-certified.
Frequently Asked Questions
Transfer duty is a national tax the buyer pays to the South African Revenue Service when property changes ownership. It is progressive, charged on the purchase value rather than the municipal valuation, and it follows the SARS table effective 1 April 2025. Property under R1,210,000 pays nothing; above that, rates climb from 3 percent to 13 percent on the highest slice. The conveyancer calculates it, collects it from you, and pays SARS before the Deeds Office will register the transfer.
Under the SARS table effective 1 April 2025, property up to R1,210,000 pays 0 percent. From R1,210,001 the rate is 3 percent on the slice above R1,210,000, rising through 6 percent, 8 percent and 11 percent bands, then 13 percent on value above R13,310,000. In money terms, a R2,000,000 home pays R33,786, a R5,000,000 home pays R327,356, and a R10,000,000 home pays R877,356.
Transfer duty is calculated bracket by bracket, so each rate applies only to the slice of value inside its band, not the whole price. For a R5,000,000 home you take the fixed R106,784 for the bracket starting at R2,994,800, then add 11 percent of the R2,005,200 above that line, giving R327,356. The conveyancer does this calculation and issues you a transfer duty figure before registration.
You pay one or the other, never both. A new build sold by a VAT-registered developer already includes 15 percent VAT in the price, and the developer accounts to SARS, so the buyer pays no transfer duty. A resale from a private, non-VAT seller carries transfer duty per the SARS table and no VAT. Always confirm in the Offer to Purchase which tax applies, because it changes your budget significantly.
No. South Africa charges non-residents exactly the same transfer duty as local buyers, with no foreign surcharge or premium. A foreigner buying a R5,000,000 home pays the same R327,356 as a citizen. The real difference for foreign buyers is finance, where local banks typically lend non-residents up to about 50 percent of value, and the need to keep clean records of offshore funds for later repatriation.
Transfer duty is paid during the conveyancing process, after the Offer to Purchase is signed and before the Deeds Office registers the property into your name. The conveyancer collects the duty from you, pays SARS, and receives a transfer duty receipt. SARS requires payment within six months of the sale agreement date to avoid interest, so the duty cheque comes well before you take ownership.
Yes, in defined cases. The clearest exemption is the zero-rated band: any property up to R1,210,000 pays no transfer duty at all. VAT-registered new builds are also exempt from duty because VAT applies instead. Certain transfers, such as between spouses in some circumstances or by inheritance, may also qualify for relief. Outside these cases, standard buyers pay duty per the SARS table.
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