Can a foreigner buy an RDP house?

There are no restrictions on foreigners purchasing and owning real estate in South Africa, as they are normally subject to the same regulations as South African citizens. South Africa simply prohibits foreigners who have been here illegally from owning property from doing so.

Individually, jointly, or in undivided shares, a foreigner can own real estate in the United States. If a foreign corporation or trust is registered in South Africa as an external company, it is legal to own property in South Africa.

As A Foreigner, What Are The Requirements For Acquiring A Home?

With being said, it is crucial to keep the following points in mind while purchasing property in South Africa as a foreigner.

Requirements In Regards To Obtaining A Visa.

If non-residents plan to stay in their South African property for an extended period of time, they will need to adhere to the Immigration Act 13 of 2002. The type of visa they need will be determined by their place of origin, the reason for their trip, and the length of time they plan to spend in South Africa.

Even if there is a long list of countries where visas are not required for stays of less than 90 days, visitors from countries where visas are prohibited must still apply for the appropriate visa.

The Ability To Make A Deal.

A Notary Public or South African embassy can be used to sign the relevant documents if the foreign buyer is not in South Africa to sign the transfer or bond documents. If the buyer is not in South Africa, he or she will need to have the documents Apostilled.

There Will Be Additional Expenses.

If the value of the property exceeds R1,000,000, foreign nationals, like South African residents, are subject to transfer duty (one million Rand). In contrast, properties acquired directly from developers will typically be subject to Value Added Tax (VAT), which will be included in the purchase price. When purchasing a home, they will also be responsible for the normal charges of transfer, which are typically paid by the buyer (kindly consult our calculator for an estimate on the property transfer costs).

In order to be subject to the country’s Capital Gains Tax, overseas buyers of South African real estate are required to register as South African taxpayers. The South African Revenue Service must clear any money that is going to be given to the seller or the seller’s agent before any of the proceeds of the sale of a property for more than R2,000,000 (two million Rands) can be released. South Africa’s tax authorities can be approached in advance to get a tax directive, which will ensure that just the designated amount is withheld.


Foreign buyers’ ability to borrow money locally is limited by South African exchange control restrictions. Buyers from outside South Africa who do not have jobs in the country will often only be allowed to borrow half of the purchase price. The remaining balance must be paid in cash, either locally sourced funds or funds sourced offshore.

More than half of the purchase price may be granted to foreigners with temporary work permits, but the bank’s requirements will still dictate the loan amount. Before leaving South Africa to return to their home country, the buyer must reduce the bond by at least half of the registered amount as a requirement of the loan. Before considering a bond for more than half of the purchase price, some institutions may require a work permit valid for at least four years.

Before purchasing property as a foreigner, seek the advice of legal specialists.

It’s critical to work with a group of professionals you can put your faith in when purchasing real estate as a foreigner.

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