South Africa is one of the most open property markets in the world when it comes to foreign ownership. Non-South African citizens and non-residents can purchase and own residential property in South Africa with very few restrictions.
Can Foreigners Own Property in South Africa?
Yes. There is no restriction on foreign nationals purchasing residential property in South Africa. You do not need to be a resident or a citizen. You can own property outright in your own name, through a company, or through a trust.
What Are the Practical Requirements?
Identity Documentation
You'll need a valid foreign passport. Your conveyancer will use this for FICA verification.
Transfer Duty
Non-residents pay the same transfer duty as South African citizens. The rate is based on the purchase price, with properties up to R1.21 million exempt under the rates effective from 1 April 2026.
Home Loans for Non-Residents
Non-residents can obtain South African home loans, but the terms are more restrictive than for residents:
- South African banks typically lend a maximum of 50% of the purchase price to non-residents
- Interest rates may be slightly higher than for residents
- The application requires more documentation, including proof of offshore income
If you're paying cash, none of this applies.
Withholding Tax on Sale
When a non-resident sells South African property, the buyer is required to withhold a percentage of the purchase price and pay it to SARS as a withholding tax on the potential capital gain:
- 7.5% for foreign individuals
- 10% for foreign companies
- 15% for foreign trusts
This is not a final tax - it's a withholding against any actual capital gain. If the actual CGT is less than the withheld amount, you can claim a refund from SARS.
Currency Controls
South Africa's Reserve Bank (SARB) and SARS both need to be satisfied that funds used to purchase property are legitimately sourced and properly declared.
Inward transfers: Funds brought into South Africa to buy property must be properly declared and documented. Your bank will handle this, but the paperwork is important.
Repatriating proceeds: When you sell, the net proceeds (after any CGT and withholding) can be repatriated to your country of origin, subject to SARB approval. Keep all your original transaction records.
Practical Tips for Foreign Buyers
- Use a conveyancer with experience in foreign buyer transactions
- Open a South African bank account early in the process
- Get tax advice in both South Africa and your home country before proceeding
- If you plan to rent the property out, understand the South African rental income tax implications