Can non-residents lease their properties out to others? Such contracts usually take the form of an Offer to... 2. South Africa boasts one of the best deeds registries in the world. All persons who are not residents (non-residents) are still subject to tax in South Africa on their income from a source within or deemed to be within South Africa. Buy Property Companies and trusts in South Africa are based on English law and are very similar in nature to those in England. Non-residents who are in possession of a valid South African work permit are considered to be residents for the duration of their permit and are therefore not subject to the borrowing restrictions that are placed on non-residents without work permits. Non-resident owners of South African property have all the normal rights of ownership including the right to recover rental income from lessees. Transfer and Registration of Property  However, a transaction can be processed without intervention from the bank should a non-resident purchase a property for cash. When purchasing a property in St. Kitts and Nevis for USD400,000 or more, buyers automatically qualify for residency. There are, however, procedures and requirements which must be complied with in certain circumstances, such as the local registration of entities registered outside of South Africa where they purchase property in South Africa, and the appointment of a South African resident public officer for a local company whose shares are owned by a non-resident. Our law permits the registration of immovable property into a foreigner’s name in the Deeds Registry. The permit for which they apply would largely depend on their country of origin, the purpose of their visit and how long they intend on staying in South Africa. ● Various forms of property ownership are available to foreigners Commercial Property, List your Property These individuals enter South Africa purely for visiting or business Getting on the property ladder can be daunting experience, especially for a first time home buyer. Bond Finance Non-residents’ investments are not subject to South African tax. On registration, all existing mortgage bonds registered over the property are cancelled simultaneously with the registration of any new mortgage bonds by the purchaser in favour of the bank granting the financial assistance. Non-residents buying/selling immovable property in South Africa. Some non-residents prefer buying property through a legal holding entity for taxation, management and asset protection reasons. A close corporation and a trust can usually be formed in less than a month. The seller will give the lawyers power of attorney to handle the process of registering the property at the Deeds Office in the name of the non-resident buyer. From 1 September 2007, a purchaser of immovable property (which has been disposed of in excess of R2 million) is obliged to withhold the amounts set out below from the purchase price payable and pay the tax to SARS, if the seller of the property is not resident in South Africa: 7.5% … Private Property offers a an easy-to-use platform for buyers to browse through South Africa’s top deals and homes on sale. Buy Property in Own Name or Through Legal Holding Entity Instead of buying property in their personal names, foreigners may choose to register a South African trust or company to take transfer of the property. By Elistea Vrey, Heyns and Partners Inc. With a beautiful coastal line, sunny skies and an advantageous exchange rate, investing in property in South Africa is a beneficial opportunity. How secure is the investment? Everything you need to know about building a property investment portfolio - Part 2. Blog Here's a step by step guide to make the process a little easier. Your email address will not be published. Non-resident owners of South African property have all the normal rights of ownership including the right to recover rental income from lessees. Generally overseas property buyers who retain their non-resident status can remit and repatriate funds freely overseas, this includes capital gains made after the deduction of taxes due. Questions Answered About Home Loans in South Africa, Using a Mortgage Originator to Help You Get a Home Loan, Guide for Non-Residents Buying Property in South Africa. Most non-resident property buyers choose the leasehold method of property ownership as this method of transfer is much more flexible than the other methods. Buy Property in Own Name or Through Legal Holding Entity A non-resident buying property in South Africa has the option of buying the property in their own name or through a legal holding entity such as a trust or company structure. I n South Africa there are currently no restrictions on ownership of fixed property by non-residents (provided they are not classified as illegal immigrants) and therefore all information supplied in previous articles in this series on the purchase and sale of fixed property will similarly apply to non-residents, irrespective of whether they are individuals … No, except for a prohibition on illegal aliens owning immovable property in South Africa. 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