When property is acquired by any person by way of a transaction, or in any other manner, transfer duty will be levied on the value of the property. The transfer duty rates change on a regular basis and the latest rates, which will apply to all properties acquired on/after 1 March 2017, were announced during the last budget speech.
This year’s changes bring slight relief for purchasers, especially in the market of first-time purchasers with the threshold being raised from R750 000 to R900 000.
This table indicates the latest rates at which transfer duty is payable:
| VALUE OF PROPERTY (Rand) |
RATE |
| 0 – 900 000 | 0% |
| 900 001 – 1 250 000 | 3% of the value above R900 000 |
| 1 250 001 – 1 750 000 | R10 500 + 6% of the value above R 1 250 000 |
| 1 750 001 – 2 250 000 | R40 500 + 8% of the value above R 1 750 000 |
| 2 250 001 – 10 000 000 | R80 500 +11% of the value above R2 250 000 |
| 10 000 001 and above | R933 000 + 13% of the value above R10 000 000 |