All you need to know when considering property for sale in Hoedspruit.
Many hours have been spent with scheduled whatsapp calls with my clients who wish to buy property in South Africa, Hoedspruit, Limpopo Province.
What are rates and taxes? What are levies? What are the tax implications for non-residents? Can foreigners own property in South Africa? What additional costs are to consider when buying property in South Africa?
I have been assisting foreign clients with property purchases in Hoedspruit, South Africa for the past 13 years.
So here is my expert advise.
Start by considering your VISA optionsAre you retiring and intend to live in South Africa permanently as a retiree, or are you entering the country on a 3 month tourist visa and will continue to visit for periods no longer than 3 months even after you have successfully purchased property in South Africa?
Click on above image to get some expert advise from one of our immigration agencies.
Understand your tax implications
Consider carefully the tax implications associated with the entity in which you purchase the property.
This will have tax implications for you.
You can purchase in your personal name/s, in the name of a South African Company, CC, in a Trust or Partnership or foreign based company.
Will you property be used as an income generating property, in other words do you intend to rent out your home when you are not residing there permanently?
At the time when you need to sell the property you will be liable for Capital Gains Tax on the profit you have made when selling the property. Certain expenses are tax deductible at this point.
- Keep a good records of all you property related expenses (maintenance and building related)
- estate agent fees are tax deductible
- keep a good record for all your foreign currency transfers (ask the receiving bank or your attorney to share the bank transfer receipts with you
Capital Gains Tax is sometimes referred to as
"withholding tax" as the transferring attorney's are by law required to withhold a certain percentage of the proceeds of your sale for Capital Gains purposes.
Additional costs when purchasing a property in South AfricaTransfer duty is a tax raised according to the value of the property
The calculations are a formular and apply within price brackets.
Transfer duty Tax guide
2026 (With effect from 1 April 2025)
Value of the property (R) Rate
R 1 – 1 210 000 0%
R 1 210 001 – 1 663 800 3% of the value above R1 210 000
R 1 663 801 – 2 329 300 R13 614 + 6% of the value above R 1 663 800
R 2 329 301 – 2 994 800 R53 544 + 8% of the value above R 2 329 300
R 2 994 801 – 13 310 000 R106 784 +11% of the value above R2 994 800
R 13 310 001 and above R1 241 456 + 13% of the value exceeding R13 310 000
Transfer duty and transfer fees - what is the difference?Further to the transfer duty you will have to pay the fees of the conveyancing attorney, called transfer fees.
In South Africa it is the Seller who has the right to chose the transferring attorney. The costs associated with the transfer, so called transfer fees raised by the attoreny, are however payable by the Purchaser.
Luckily these fees are regulated by law and therefore may not differ largely between attorneys.
Lastly, in some instances your Seller is a VAT registered Company, in which case VAT will be applicable and will be charged at a rate of 15.5 % of the purchase price.
If VAT is applicable you will not have to pay transfer duty, it is either or.
What are rates and taxes for and what is referred to as levies?
Our local municipality is called Maruleng and rates and taxes refer to municipal fees for waste collection, water supply, upkeep of the roads etc.
These fees are staggered according to the value of your property. These values get adjusted over time as property prices spike and this will affect the rates and taxes you will be charged. A valuation role is a public document which can be viewed to enquire about the current municipal value of your property.
As a quick guideline, residential property will be billed at a factor to the Rand and multiplied by the market value of your property.
The figure obtained will amount to your annual rates and taxes.
To enquire which factor is applicable for your property consult your preferred estate agent or enquire with our local municipality.