Cost of buying property in South Africa



South Africa: The Republic of South Africa is located at the southern tip of the African continent. The country is bordered by the Indian Ocean to the east, the Atlantic Ocean to the west and Namibia, Botswana, Zimbabwe, Mozambique and Swaziland to the north. Lesotho is enclosed by South Africa. Three geographical regions dominate South Africa's landscapes: the inland highlands, the mountain ranges and the coastal region. The inland highlands are characterised by a largely constant altitude and are separated from the other landscapes by mountain escarpments (the Great Escarpment) that rise above the plains (veld) of the plateau and vary in height and steepness. Although there are two major river systems, the Limpopo and the Orange, the surface of the plateau is arid. On the coast there are both sandy beaches and rocky coves, and the hinterland is covered with shrubs. The mountain region, which stretches from the Cape of Good Hope along the coast to the Limpopo Valley in the north-east of the country, consists of the Drakensberg, Nuweveldberg and Stromberg ranges.


Currency South Africa: ZAR


VAT in South Africa: 14 %


German schools in South Africa: There are none. You can take German lessons privately, the public schools have a very good reputation.


How high is the cost of living in South Africa? e.g. hairdresser (man) 5,80 Euro, women with dyeing etc. approx. 20 Euro, household help from 8 am to 5 pm approx. 7,50 Euro, food approx. 50 % of Germany, bread 0. 60 Euro, butter 1,60 Euro, restaurant: 5 star set menu 5 course ca. 19 Euro, pizza 4,00 Euro, beer 0,3l 0,80 Euro, meal in normal restaurant (lamb or fish) ca 6,80 Euro, fruits: mango 0,25 Euro, bananas Kg 0,50 Euro, head of lettuce 0,30 Euro.


Car costs South Africa: Tax e.g. BMW 320 - 33 Euro / year, insurance fully comprehensive 30 Euro / month, workshop costs hourly wage 7,50 Euro.


Health insurance / medical care in South Africa: e.g. man 40 years old 58,00 Euro / month. More is not worth it, because the doctor's visits here are very cheap, such as gynaecologist 25.00 euros, normal doctor 12.50 euros, dentist 25.00 euros. The medical care in South Africa is on a very high level, the hospitals are on the same or even better level. Many Europeans come to South Africa for plastic surgery, such as breast, eye, lifting, etc. Prices are 3-4 times cheaper than in Europe.


South Africa Properties - Real Estate


Pension from Germany: you can have it sent to you and live very well from it here. In addition, the banks here offer very high interest rates, such as a normal account, accessible every day. If you get about 10% interest, you invest your money in government bonds, i.e. no risk, you even get 20-24% interest with a term of 2 years.


Income tax in South Africa: approx. 25 % tax on profits, for employees it is different: example: cleaner in a hotel: 22 days a month a 9 hours- wage 128 Euro- she has to pay 1 % of it to the government. Unemployment contribution, i.e. if she becomes unemployed she gets 80% of her wage for half a year. The employer also pays 1%, there are no other costs.


Visa for South Africa: you can stay in South Africa up to 3 months, after that you can apply for a visa (very easy), if you buy e.g. a business you apply for a work permit based on the purchase which you also get relatively quickly and in parallel you apply for the so-called permit resident, then you do not become a South African, but you do not have to apply for a visa again and again.


Importation of animals into South Africa: possible with an import permit if the pets are brought into the country with the authorised user, as luggage. In addition, these animals must comply with the rules of the Department of Health and Customs. The animal must not have any contagious diseases and must have been vaccinated against rabies 1 to 12 months before departure. The rabies vaccination is not required if the country of origin has been officially declared free of rabies. In this case, an appropriate certificate / animal passport must be presented. Furthermore, the import of (any) feathered game is prohibited.


Real Estate in South Africa:Emigrate to South Africa - buy property. The purchase of real estate in South Africa by foreigners is possible at any time. Foreign exchange import and export by foreigners is easy. In recent years, Exchange Control in South Africa has been subjected to deregulation, which further facilitates the specifications for the transfer of funds.


Contract of sale in South Africa: Contract of sale is usually prepared or concluded in the form of an offer to purchase. Although this document is only called an offer to purchase, it becomes a legally binding purchase contract through the acceptance of the seller's signature. It is advisable to have the broker check the documents or to consult a lawyer before concluding the contract. With the signature of the purchase contract, the entry in the land register, the final payment of the purchase price, the change of ownership from the seller to the buyer is finally legally binding.


Land Registry South Africa: most advanced and best organised land registry systems in the world. It provides an exceptionally high level of security for property owners. Land registration provides accurate information about the size of the property and any associated rights and easements. For the buyer's security, the seller should prove his ownership and right of disposal of the property to be sold by presenting his existing land registry registration. After the purchase contract has been signed, the ownership is entered in the land register by a lawyer, and only then is the property usually handed over to the buyer. An entry in the land register as a property owner can be made either in full, in part, in one's own name, as a co-owner in a community of interest or in another form as a legal entity. As a rule, the property is registered as a so-called freehold. Other forms are: Leasehold, Sectional Title or Share Block.


Property Purchase Payment: Once a contract of sale for a South African property has been concluded, the buyer must take care of the payment procedure. According to South African law, all money transfers from abroad must be applied for via the South African Reserve Bank. This is also important as it ensures that any subsequent remittances are secured.


Account opening in South Africa: After a decision to purchase a property in South Africa has been made, all enquiries must be conducted through an authorised dealer, e.g. a bank or a registered bank officer, and not through the South African Reserve Bank. Once the buyer has approved financing through a bank, an account must be opened by the applicant in South Africa to enable payment. Often this account is a loan account, funded from abroad, and or through the rental income of the purchased property. Rental agreements also serve as collateral for the bank in this regard. In the case of financing through a mortgage, a confirmation from the credit institution must be submitted. Normally, a land register entry can then be made within 4-6 weeks.


South Africa Properties - Real Estate


Property financing in South Africa: not possible for foreigners without a residence permit. Partially possible with residence permit and at least 50% equity (cash). The interest rate is very high compared to Germany or Switzerland.


Incidental costs of purchasing real estate in South Africa: approx. 9% of the purchase price. If one buys a company / business that is VAT registered, the transfer costs are omitted, notary and transfer costs: 1 to 2% depending on the amount of the purchase price. Real estate agent: In South Africa the buyer pays no commission.


Rental income in South Africa: Foreign property owners, like South Africans, are allowed to rent out their property. Rental income must be taxed in South Africa.


South Africa is divided into 9 provinces. After the first free and equal elections in 1994, the homelands were reincorporated into the country and the four provinces were dissolved. A complete reorganisation into nine provinces took place.


Western Cape with the capital Kapstadt

Northern Cape with the capital Kimberley

Eastern Cape with the capital Bhisho

KwaZuzlu-Natal with the capital Pietermaritzburg

Free State with the capital Bloemfontein

North West with the capital Mafikeng

Gauteng with the capital Johannesburg

Mpumalanga with the capital Nelspruit

Limpopo with the capital Polokwane



Cost of buying property in South Africa
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