| Property Transfer Costs Transfer duty or transfer costs are Government levies on property transactions. The tax is paid when a property 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. If properties are bought in the name of a close corporation, company or a trust, you will be charged a transfer duty of 10% of the purchase price. If you buy a property from a developer who is registered for VAT, you will pay VAT rather than the transfer duty on the purchase price. Otherwise transfer costs are charged on a sliding scale depending on the purchase price of the property. The more expensive a property is the higher the transfer costs will be. According to the price of the property, the transfer cost is as follows: - Below R 500 000.00 - no transfer duty.
- Between R 500 000.00 and 1 Million - A flat Rate of 5%
- Over 1 Million - R 25 000.00 + 8%
- Companies/Trusts/CC - Pay a flat rate of 10%.
| 
