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 – 1 100 000 0%
1 100 001 – 1 512 500 3% of the value above R1 100 000
1 512 501 – 2 117 500 R12 375 + 6% of the value above R 1 512 500
2 117 501 – 2 722 500 R48 675 + 8% of the value above R 2 117 500
2 722 501 – 12 100 000 R97 075 +11% of the value above R2 722 500
12 100 001 and above R1 128 600+ 13% of the value exceeding R12 100 000