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Costs involved in property transfer

Costs involved in property transfer

COSTS INVOLVED SECURING YOUR PROPERTY INVESTMENT:


  • Transfer Duty (Rate of Duty)

The Government levies a tax on property transactions called transfer duty.

The tax is paid when you buy a property and it is transferred into your name. Transfer duty is charged on a sliding scale depending on the price of the property – the more expensive it is, the higher the transfer duty.


From the March 2020 Transfer Duty For Individuals, Companies, Close Corporations (CC) and Trusts the scale is as follows

Paid on the value of the property sale:


Transfer Duty Table: (There are still Transferring Costs of transfer and Bond Costs to pay)

please note the following rates apply:

 

Value of the property (R)​​​Rate
​1 – 1000 000​​0%
1 000 001 – 1 375 000​3% of the value above R1 000 000
1 375 001 – 1 925 000​R11 250 + 6% of the value above R 1 375 000
1 925 001 – 2 475 000​R44 250 + 8% of the value above R 1 925 000
2 475 001 – 11 000 000​R88 250 +11% of the value above R2 475 000
​11 000 001 and above​R1 026 000 + 13% of the value exceeding R11 000 000

 

Buying property through different legal entities (Why as Company, CC and/or Trust)


  • Conveyancing Fees – To Attorney

  • Bond Costs

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