Investing in SA Property as a Non-Resident: What You Should Know
Buying Property in South Africa as a Foreigner: Key Facts & Considerations
South Africa offers an attractive opportunity for foreign investors, whether you're looking for a holiday home, a rental investment, or a future retirement base.
Add to this favourable exchange rates, strong property rights and no legal restrictions on foreign ownership, the country remains a popular destination for international buyers.
There are however a few essential factors every non-resident purchaser should be aware of before making a move.
1. No Restrictions on Foreign Ownership
Foreign nationals are legally allowed to own property in their own name or via a locally registered company or trust. There are no restrictions on the type or number of properties you can buy, making South Africa relatively accessible compared to many other countries.
2. Financing as a Non-Resident
Foreign buyers can apply for a mortgage in South Africa and local banks typically require a 50% deposit (i.e., they will finance up to 50% of the purchase price).
Importantly the balance 50% plus Transfer Duty and transfer fees must be introduced into the country from a foreign source
3. Exchange Control & Foreign Funds
All foreign funds brought into the country for property purchases must be declared and recorded by an authorised dealer (usually a bank). This is important because it enables you to repatriate your funds, including capital gains when you sell the property, provided all requirements were met.
Importantly when a non-resident transfers funds from a foreign source a ‘deal-receipt’ is issued and this document must be safeguarded and retained if the purchaser ever intends selling and repatriating funds back overseas.
4. Tax Implications
Non-residents may be liable for taxes such as Transfer Duty, capital gains tax upon resale and income tax on rental income (if applicable).
It’s highly recommended to engage a local tax consultant or attorney to navigate this efficiently.
5. Buying in a Trust, Company, or Personal Name
Foreigners may purchase property in their personal name or set up a South African entity (such as a company or trust) to do so.
Each option has pros and cons from a tax, legacy planning, and liability perspective.
An experienced conveyancer or tax advisor can guide you on the best structure for your goals.
6. Signing Documents from Abroad
If you are not in South Africa at the time of purchase, you can still complete the process remotely.
Legal documents including the Offer to Purchase and transfer paperwork must be signed in one of the following ways:
- At the South African Embassy or Consulate in your country of residence (the most common route)
- Before a Notary Public, followed by an Apostille or authentication process (depending on whether your country is part of The Hague Convention)
This process ensures the documents are legally valid in South Africa.
Your conveyancer will guide you step-by-step to ensure smooth execution.
Partner With a Trusted Expert
Kinesis Property has successfully assisted numerous international buyers in navigating the South African property market with confidence and clarity.
Whether you're still exploring your options or ready to make an offer, our experienced team is here to guide you every step of the way from search to signature.
Thinking of investing in South Africa?
Reach out to Kinesis Property today for expert advice, curated listings and full-service support tailored to foreign buyers.
