Buying a property in South Africa and obtaining a residence permit
Buying property in South Africa is one of the many ways to invest in this country. However, you should know that you will not receive a residence permit in South Africa by buying a property in this country. You can obtain a visa and reside in this country by registering a company and obtaining business and investment visas. People who want to get a residence permit by buying a property can choose countries such as Spain, Portugal, Malta, etc.
Buying a property in South Africa and people who are qualified to buy a property
There is no limitation for foreigners who want to buy a property in South Africa, and their status is the same as South African people. Only the foreigners who have entered the country illegally cannot purchase property in this country. However, there are some requirements, which the applicants must meet to be able to buy a property in South Africa. The foreigners must obtain a residence permit in South Africa if they want to live in their purchased property for a long time. One can get residency in this country in various ways. We have prepared this article in the MIE Austria, and any copy of it without mentioning the source is illegal. Buying a property in South Africa is done through a process that we will discuss in the next section.
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Topics reviewed in this article:
- The legal process for buying a property in South Africa
- The cost of buying and renting a property in South Africa
The legal process for buying a property in South Africa
Buying a property in South Africa has its own rules and regulations. A person who wants to invest in real estate must go through the following process to make the transaction formal and legal:
Once you find your ideal property in this country, you should apply for it in South Africa, which is usually appointed by a real estate lawyer. The real estate agent will prepare a formal letter confirming the details of your request then it will be sent to the seller for approval. If the seller accepts the offer, both parties will sign the document, after which the document will be formally considered a sales agreement.
At this time, the seller will choose a dead writer to evaluate the legal aspects of the transaction. The buyer usually pays the expenses. The buyer will then submit the documents to the real estate office so that one is formally identified as the new owner of the property. As in other countries, buying a property in South Africa and going through this legal process often takes six to eight weeks. Once your name has been officially registered as the new owner of the property, you must pay the remaining funds, and the real estate attorney must verify it.
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The process of buying a property in South Africa is as follows:
- Submit a property purchase request
- Legal attorneys receive the property’s contract.
- Confirmation of the validity
- Guarantee from a lawyer
- Rent and other expenses
- Signing the documents
- The transaction is registered in the real estate registration office.
- The seller evacuates the property.
- The buyer settles in the property.
- Pay any predefined fees and close the case.
The cost of buying and renting a property in South Africa
When you buy a property in South Africa, you usually have to pay the transfer fee, the property registration fee, and the cost of the real estate lawyer.
The transfer fee is not fixed for all properties at the time of sale. It depends on the price of the property:
| Property value (rand) | Transfer rate (percentage) |
| ZAR 750000 | 0 |
| ZAR 750000-1,250,000 | 3 |
| ZAR 1,250,000-1,750,000 | 5 |
| ZAR 1,750,000-2,250,000 | 8 |
| Higher than ZAR 2,250,000 | 11 |
You must often pay the transfer fee at the time of property purchase in South Africa. Otherwise, you must pay it within six months of the purchase agreement (not on the final date of sale). If you do not pay this amount, it will be subject to late payment and will have a 10% annual profit.
One must also pay the property registration fee after the finalization of the property transfer process.
| Property value (rand) | Registration fee |
| ZAR 150000 | ZAR 70 |
| ZAR 150،000-300،000 | ZAR 350 |
| ZAR 300،000-500،000 | ZAR 450 |
| ZAR 500،000-1،000،000 | ZAR 550 |
| ZAR1،000،000 – 2،000،000 | ZAR 650 |
| ZAR2،000،000 – 5،000،000 | ZAR 1،050 |
| Higher than ZAR 5،000،000 | ZAR 1،250 |
The cost of a dead writer or a real estate lawyer varies from 1,250 to 36,000 rands (Plus 14% VAT).
The cost of renting and buying a property in South Africa can be summarized as follows:
| Rental property | Purchase property (per square meter) |
| One-bedroom apartment in the city center: 6,197 rand | An apartment in the city center: 14,571 rand |
| One-bedroom apartment outside the city: 5,252 rand | An apartment outside the city: 10,793 rand |
| There-bedroom apartment in the city center: 12,977 rand | |
| Three-bedroom apartment outside the city: 10,908 rand |
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