Renting out property in South Africa: landlord guide

Costs of buying

• Transfer duty (from 1 April 2025): 0% up to R1,210,000, then 3% to R1,663,800, 6% to R2,329,300, 8% to R2,994,800, 11% to R13,310,000 and 13% above. New homes from VAT-registered developers carry VAT instead.
• Conveyancing and bond registration fees come on top.
• Municipal rates are charged every month; apartments also pay a monthly levy to the body corporate.

Buying as a foreigner

• There are no restrictions on foreigners buying property in South Africa.
• Bring the money in through a bank (an authorised dealer) and keep the deal receipt: you need it to send the sale proceeds out later.
• Non-residents can usually borrow up to 50% of the price from South African banks.
• When a non-resident sells for R2 million or more, the buyer withholds 7.5% of the price (10% for companies, 15% for trusts) towards the seller's tax, unless SARS approves less.

Official guidance: SARS: Withholding when a non-resident sells property · South African Reserve Bank: exchange control

How rental income is taxed

• Rental profit is taxed with your other income at 18–45%. Non-residents are taxed in South Africa on South African rent and file returns.
• The tax year runs from 1 March to the end of February. Most landlords are provisional taxpayers, paying in August and February and filing the annual return by January.

Expenses claimable against rental income

• Bond (mortgage) interest, municipal rates, levies, insurance, repairs and maintenance, and agent and management fees.
• Wear-and-tear allowances on furniture and appliances in furnished rentals.

Tenancy rules

• Under the Rental Housing Act the deposit must be kept in an interest-bearing account, and the interest belongs to the tenant.
• Landlord and tenant inspect the home together at the start and end of the lease; the deposit is refunded within 7, 14 or 21 days depending on the outcome.
• Leases should be in writing, and disputes can go to the provincial Rental Housing Tribunal.

Key dates

• End of August and end of February: Provisional tax payments
• From July (by January for provisional taxpayers): Annual income tax return
• Monthly: Municipal rates and levies

Questions landlords ask

What is a good rental yield in South Africa?

Gross yields of 8–10% are common, higher than in most countries, but so are interest rates. Check the cash flow with the loan in the rental yield calculator for South Africa.

Can foreigners buy property in South Africa?

Yes, with no restrictions. Bring the money in through a bank and keep the deal receipt, which you'll need to send the proceeds out when you sell.

What happens when a non-resident sells property in South Africa?

If the price is R2 million or more, the buyer withholds 7.5% of it (for an individual) towards the seller's tax. SARS can approve a lower amount.

What are the deposit rules for landlords in South Africa?

The deposit must be kept in an interest-bearing account with the interest going to the tenant, and both sides inspect the home at the start and end of the lease.

Official sources

• South African Revenue Service (SARS)
• South African Reserve Bank
• Department of Human Settlements