Can Foreigners Buy Property in South Africa? A 2025 Guide
South Africa is one of the few countries in Africa where foreigners are legally allowed to buy property — and in 2025, the opportunities for international buyers are better than ever. From beachside villas to commercial investments, the door is open… but there are still important laws and procedures you need to follow.
This guide breaks it all down: who can buy, what you can buy, how to finance it, and what pitfalls to avoid.
Can Foreigners Legally Buy Property in South Africa?
Yes. South African law places no restrictions on foreign nationals purchasing property, as long as they comply with basic legal and financial requirements. Foreigners have the same property rights as South African citizens, including:
Freehold ownership
Leasehold property
Sectional title units (like apartments or complexes)
Foreigners can buy property in their own name, or via a company or trust — although that may have different tax and administrative implications.
What Types of Property Can Foreigners Buy?
Foreigners can purchase:
Residential homes or apartments
Vacant land
Commercial or retail properties
Farms (with certain restrictions in protected or agricultural zones)
However, foreign buyers cannot buy land that’s been allocated for restitution or land reform, and may require special permission when trying to buy property close to national borders or in environmentally sensitive areas.
Do You Need to Be a Resident to Buy Property?
No. You do not need to be a South African resident or citizen. Even short-term visitors or non-residents can legally purchase property, provided they:
Have a valid passport
Are legally in the country (or purchase via a local attorney)
Can prove the legal source of funds (to comply with FICA laws)
However, non-residents face additional financial rules, especially when it comes to transferring money in or out of South Africa.
Can Foreigners Get a Bond (Home Loan) in South Africa?
Yes — but it’s not as straightforward as it is for citizens. Here’s what to know:
✅ You can apply for a bond from a South African bank
Most banks will only finance up to 50% of the property value for non-residents
You’ll need to put down at least a 50% deposit
You must provide proof of income, tax compliance in your home country, and an international credit record
✅ You must open a South African bank account
Specifically a “non-resident account” (often a special foreign currency or rand account)
✅ Funds brought into the country must be declared
You must register any money sent into SA with the South African Reserve Bank (SARB)
This ensures you can repatriate your funds (or profits) later
Can Foreigners Rent Out Their Property?
Yes, foreigners can legally rent out their property to tenants, either long-term or short-term (e.g. Airbnb). However, rental income must be declared to SARS (South African Revenue Service), and tax may be payable locally.
If using Airbnb or other platforms, you may also be subject to municipal by-laws depending on the city.
What Are the Costs Involved?
In addition to your deposit or cash purchase price, you’ll need to budget for:
Transfer Duty (on properties over 1.1 million rands)
Attorney/Conveyancing Fees
Bond Registration Fees (if applicable)
FICA Compliance costs (usually small admin fees)
Municipal Rates & Taxes
Ongoing Maintenance & Levies (for apartments)
Expect to pay 7–10% of the purchase price in additional costs.
Can You Get Permanent Residency Through Buying Property?
No. Unlike some countries, South Africa does not currently offer a "golden visa" or automatic residency in exchange for property investment.
However, if you invest a large amount (usually via a business or special permit route), you may become eligible for temporary or permanent residence, especially if your investment creates jobs.
What Are the Risks or Downsides?
Exchange Rate Fluctuations: The rand can be volatile, which may affect future returns
Resale Value: Some foreign buyers struggle to resell quickly, especially in luxury markets
Political/Economic Uncertainty: SA has pockets of instability that may affect investor confidence
Unfamiliar Laws: You need a local attorney and often a translator to help with paperwork
Repatriation Limits: Without proper declarations, you might struggle to send profits home
Tips for a Smooth Foreign Purchase
Use a qualified real estate attorney with experience in foreign transactions
Get preapproval for financing (or plan your deposit carefully)
Ask for FICA-compliant contracts and lodge your funds correctly
Work with local agents who know the best areas and legal steps
Declare all income and profits to avoid tax penalties
Don’t rush — research your chosen area thoroughly
Why South Africa is Still a Top Choice
Despite its challenges, South Africa remains a top destination for foreign buyers thanks to:
Affordable property prices compared to Europe or the US
Scenic locations (beachfront, game reserves, wine farms)
Strong rental yields in tourist-friendly areas
No citizenship restrictions
English legal system and widespread English usage
Whether you're a UK buyer looking for a retirement home, a UAE investor seeking rental income, or a global nomad looking to diversify — South Africa offers real opportunity.
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