There are, however, procedures and requirements which must be complied with in certain circumstances, such Non-residents can own property partially or wholly, in their own names or through ownership of an interest in one or other forms of legal entity. ● The profit made on the sale of the property may be taken out of South Africa The most common form of ownership is that of individual title. South Africa’s immigration system is regulated by the Immigration Act of 2002 (as amended) and its associated regulations. Get the best of Private Property's latest news and advice delivered straight to your inbox each week. ● Transfer of funds takes place as normal through the secure local banking system These individuals enter South Africa purely for visiting or business South Africa boasts one of the best deeds registries in the world. Buy Property in Own Name or Through Legal Holding Entity Blog Private Property offers a an easy-to-use platform for buyers to browse through South Africa’s top deals and homes on sale. Here's a step by step guide to make the process a little easier. Required fields are marked *, Property For Sale 2. Non-residents who are purchasing property in the name of a company or other legal entity rather than in their own... 3. On registration, all existing mortgage bonds registered over the property are cancelled simultaneously with the registration of any new mortgage bonds by the purchaser in favour of the bank granting the financial assistance. Copyright © Private Property South Africa (Pty) Ltd. 1997 - 2021. Non-residents are, however, liable for Capital Gains Tax after the sale of a property. 10 tips for non-residents buying property in South Africa 1. So, even if you’ve worked overseas for several years, if your tax residency is assigned to South Africa, you are required to declare your foreign earnings to the South African Revenue Service (SARS) and pay income tax. South Africa boasts a first-world property registration system that is guaranteed and secure; conducting property surveys is unusual. The program also gives home buyers visa-free travel to more than 100 countries, including the Schengen Zone (25 EU countries), Canada, the UK, Hong Kong, Singapore, etc., as well as making it easier to gain a residency permit to Monaco, Switzerland, Andorra, the UK, Bermuda, Cayman Islands, Bahamas and other Caribbean countries. Many professionals are utilising these properties for business or to sell, eventually to make a profit. BUYING PROPERTY AS A NON-RESIDENT MARCH 2019 There are no restrictions in respect of property ownership by non-residents, save for a prohibition on illegal aliens owning immovable property within South Africa. Transfer Attorneys Your email address will not be published. Finally, a non-resident can purchase South African property over the internet without entering the country. South Africa’s banking system is dependable, established and highly advanced. Non-resident 2.1 Introduction There is no definition for the word “non-resident” in any Act administered by SARS. However, mortgage options top out for non-resident buyers at just 50% of the property purchase price. Foreigner's guide to buying property in South Africa. All Rights Reserved. To ensure repatriation, all foreign funds remitted to South Africa must be declared and documented, and the property must be endorsed ´non-resident´. No, except for a prohibition on illegal aliens owning immovable property in South Africa. Before buying. Non-residents’ investments are not subject to South African tax. Instead of buying property in their personal names, foreigners may choose to register a South African trust or company to take transfer of the property. Property may also be held through share ownership in companies, holding membership in close corporations or as a beneficiary in a trust. Inspections, About Us However, should the prospective purchaser intend residing in the property for any length of time, he or she will need to comply with the requirements of the Immigration Act and either have a valid permit to temporarily remain in the country or be in possession of a permanent residency permit. No significant restrictions apply to non-resident property buyers in South Africa and the overseas buyer can enter the South African property market with confidence. Once the money transfer has taken place, it is usually held in trust by an attorney or real estate agency, either on behalf of the purchaser or the seller until registration of transfer. 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