What are the rules for foreigners to buy property in South Africa?

Mar 11th, 2013 by Annalien in Advice to buyers, FAQs

If you are a foreigner and interested in buying property in South Africa, you may find the following useful:

  • First of all, you must be a ‘legal’ foreigner, i.e. in possession of either a temporary or permanent residential permit;
  • You will be required to pay a deposit of at least 50% of the house and land in a package that you might be getting;
  • You will also have to comply with the rules and regulations laid down by the South African Reserve Bank and comply to FICA requirements.
  • Foreigners who work in South Africa on the strength of a work permit, are not regarded as ‘non-residents’ by the South African Reserve Bank. They are considered to be residents for the duration of the period of their work permit and they are therefore not restricted to a minimum of a 50% loan.
  • If a non-resident purchaser intends paying cash for a property, there is no limit to the amount of money he can bring into South Africa for this purpose and he need not involve the South African Reserve Bank in the transaction.
  • When the property is sold, all the profits can be returned to the country from which they were sent.
  • South Africa is known for having one of the best and most secure systems of land registration worldwide.

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