Transfer Duty is a government tax, which is charged when a property is transferred from one person or entity to another.

Natural Persons

  • For properties with a purchase price of up to R 500 000.00, there is NO Transfer Duty levied.

  • From R 500 000.01 to R 1 000 000.00, Transfer Duty is calculated at 5% on the value above R 500 000.00 (So, you don’t pay Transfer Duty on the first R 500 000.00.)

  • From R 1 000 001.00 upward, Transfer Duty is calculated at 8% on the value above R 1 000 000.00, PLUS a flat rate of R 25 000.00.

Trusts, Companies & Close Corporations

A flat rate of 8% of the purchase price is payable. Companies registered as VAT vendors may claim the Transfer Duty back at the end of its financial year, from the South African Revenue Services.

Transfer duty exemptions.

The Transfer Duty Act was amended with effect from 25 July 2006. Spouse’s who acquired the property from their deceased spouse no longer have to pay transfer duty to have the property registered in their name.

In the event of a divorce the spouse awarded the property will no longer have to pay transfer duty to have the property registered in their name. To qualify for the exception the sole ownership in the property of the deceased or divorced spouse must be acquired.