What is Transfer Duty?

Transfer Duty is the tax levied by the Receiver of Revenue and paid over by the conveyancer to SARS before transfer of a property can take place to a purchaser.

Transfer duty is calculated as follows:-

Value of property                             Transfer duty

R0 – R750 000 0%
R750 001 – R1 250 000 3% of the value exceeding R750 000
R1 250 001 – R1 750 000 R15 000 + 6% of the amount above R1 250 000
R1 750 001 – R2 250 000 R45 000 + 8% of the amount above R1 750 000
R2 250 001 and above R85 000 + 11% of the amount above R2 250 000

 Valid 1 March 2015

If the seller is a VAT vendor and the property forms part of the seller’s business then transfer duty is not payable but VAT is and the seller will generally marked the property at a certain price plus VAT thereon.  This often happens when purchasing property in a new development.