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. When you buy vacant land, you will pay transfer duty on the value of the land only, but if you buy an existing home the transfer duty is based on the value of the land and the building. 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 23 rd of February 2011 Transfer Duty For Individuals, Companies, Close Corporations (CC) and Trusts the scale is as follows :
R 600 000.00 = Zero % Transfer Duty.
From R 600 001.00 to 1 million = 3% Transfer Duty.
Above R 1 000 001.00 to R 1 500 00 = R 12 000 + 5% Transfer Duty.
R 1 500 001 and Above = R 37 000 + 8 %
Example : If the purchase price of the property is R 1 550 000 you will pay R 37 000.00 for the first 1.5 Million + 8% on the balance of R 50 000 .
There are also other costs involved, when purchasing a home. For more details information click here or use the calculators below to help you determine the costs associated with the purchase of property and those costs related to the registration of the home loan. These costs are often overlooked when purchasing a property and should be taken into account when assessing your affordability.
Click on one of the following:
The tables of ABSA is recommended by us for calculating all costs (transfer fees, bond costs and other costs). ABSA’s tables also provide breakdowns of the costs and they are very user friendly.