Jason Rohde, CEO of Lew Geffen Sotheby’s International Realty South Africa, says that transfer duty is, quite simply, a taxable duty payable to the state on property transactions.
It is a non-negotiable tax that is payable whether you buy a property from an individual or a legal entity like a Close Corporation or a (Pty) Ltd.
“Transfer duty is a flat 10% on a legal entity, but it works according to a sliding scale with regard to other properties, where the value of the property obviously affects how much transfer duty you will pay,” Rohde explains.
R500 000 or less = 0%
R500 000 — R1m = 5%.
Above R1-million = R25 000 + 8%
Transfer duty’ typically includes the state transfer duty, conveyancing fees and posts and petties.
“Although you cannot negotiate the transfer duty, you can, of course, negotiate the conveyancing fees, and you have the right to shop around,” says Rohde.
Transfer fees are usually payable a couple of weeks prior to registration and you attorney will advise you as to when the money falls due.
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