This threshold means a large share of entry-level property purchases in South Africa attract no transfer duty at all, a meaningful saving for first-time buyers that isn't always factored into upfront budgeting. It's also worth knowing that transfer duty and VAT are mutually exclusive on the same transaction: buying directly from a VAT-registered developer means paying VAT instead of transfer duty, not both.
Source: SARS
Frequently Asked Questions
Who pays transfer duty — the buyer or the seller?
The buyer is responsible for transfer duty, usually paid through the transferring attorney as part of the property registration process.
When must transfer duty be paid?
Within six months of the date of acquisition, generally the date the sale agreement was signed by the last party.
Does transfer duty apply when inheriting a property?
No — property acquired through inheritance from a deceased estate is generally exempt from transfer duty, though other taxes like estate duty may still apply to the estate.