New SARS Rules Affect Property Transfers in South Africa

Property transfers in South Africa have recently become more complex following important changes introduced by the South African Revenue Service (SARS) in December 2025. These changes affect both purchasers and sellers and if not addressed from the beginning of the transaction may result in unexpected delays in the transfer process.

In every property transfer, a Transfer Duty Declaration must be submitted to SARS. Once SARS is satisfied that all requirements have been met, they issue a Transfer Duty Receipt (TDRE). This receipt is compulsory and the Deeds Office will not register the property into the purchaser’s name without it.

The recent changes relate to a stricter verification process by SARS. SARS now requires that both the purchaser and the seller be correctly registered on their system and that their personal or entity details correspond with SARS records. Where information is missing, incomplete, or cannot be verified, SARS will not issue the TDRE, and the transfer will be delayed until the discrepancy is resolved.

A common misconception is that individuals who have never earned taxable income do not need to register with SARS. While this may have been true in the past, SARS now requires such individuals to register and obtain a tax number if they are buying or selling property. This does not necessarily mean that tax will be payable. It ensures that SARS has the correct information to approve the transfer.

Foreign buyers and sellers are also subject to the same requirements. Any foreign individual who buys or sells property in South Africa is required to register with SARS and obtain a South African tax reference number. Without this, SARS will not issue the TDRE and the transfer cannot proceed. This requirement applies even if the person does not permanently reside in South Africa.

SARS has also placed increased scrutiny for property transactions where the purchase price exceeds two million. In practice, valid tax reference numbers for both the purchaser and the seller are required before the TDRE is issued. Although the verification process also applies to lower-value transactions, it is especially strict where the purchase price exceeds this threshold.

To avoid unnecessary delays, purchasers and sellers should ensure at the earliest opportunity, that they are registered with SARS, they hold a valid tax reference number, and that their tax details and personal information correspond with SARS’ records.

These changes form part of SARS’ broader efforts to improve compliance and ensure the accuracy of its records. While this has introduced an additional administrative step in the transfer process, proper preparation can ensure that property transfers proceed smoothly.

If you are planning to buy or sell property and are unsure about your tax registration status, or if your transfer is experiencing delays, you are welcome to contact Snymans Attorneys. We will gladly assist you in navigating these requirements and ensuring your property transaction is registered without unnecessary delay.

Written by: Maret Carroll
Moderated and approved by: Rohula Kgabu

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