To whom is Transfer Duty Payable and How Much?

Transfer Duty is not to be confused with Transfer Costs or Fees.  Transfer Duty is a tax payable to the government by the Purchaser, prior to transfer.

Transfer Duty will be exempted if the purchase price / value is under R500 000 or when the Seller is a registered Vat Vendor and the property is being sold as part of a going concern.

Penalty Transfer Duty is payable if same is not paid to the Receiver of Revenue within 6 months after the date of acquisition of the immovable property.

Transfer Duty is calculated on the value of a immovable property (purchase price or market value whichever is the highest).

Transfer Duty is calculated as follows:

When the purchaser is a LEGAL ENTITY (ie. Trust, Close Corporation and / or Company)

• 8% of the Purchase Price

When the purchaser is a NATURAL PERSON

• 0% up to R500 000
  
• 5% on the balance between R500 001 and R1 000 000
  
• 8% on the balance above R1 000 001
  
  

What kinds of costs are involved in a normal transaction?

The costs relating to the transfer of fixed property fall into the following categories:

• Transfer Fees
  
• Bond Fees
  
• Transfer Duty or VAT
  
• Rates and Levies
  
• Deeds Office Levies