The Minister of Finance, Tito Mboweni, announced in South Africa’s 2020 Budget Speech “to support the property market, the threshold for transfer duties is adjusted”. This news will be welcomed by property sellers, and more particularly, those in the market to purchase property, as the Transfer Duty exemption has now been increased to R1 million. This means that property costing R1 million or less will not be subject to Transfer Duty.
Prior to 1 March 2020, this exemption threshold was R900 000.00.
Transfer Duty is a tax payable on any immovable property which is acquired by way of a transaction or otherwise, including sale, donation, cession or exchange of property.
Transfer Duty is payable at the following rates on transactions which are not subject to VAT:
2021 (1 March 2020 – 28 February 2021)
|Value of the property (R)||Rate|
|1 – 1000 000||0%|
|1 000 001 – 1 375 000||3% of the value above R1 000 000|
|1 375 001 – 1 925 000||R11 250 + 6% of the value above R 1 375 000|
|1 925 001 – 2 475 000||R44 250 + 8% of the value above R 1 925 000|
|2 475 001 – 11 000 000||R88 250 +11% of the value above R2 475 000|
|11 000 001 and above||R1 026 000 + 13% of the value exceeding R11 000 000|
Calculate the Transfer Duty, Transfer Fees and other amounts payable when purchasing a property by using our free Bond Calculator on our website: https://www.schnetlers.bondcalculatoronline.co.za/.
Contact our offices for any queries on Transfer Duty amounts or Transfer Fees when purchasing an immovable property.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)