As with other international markets, the seller pays the brokerage to the estate agent as well as the compliance certificates, and the buyer pays for the transfer costs. The transfer costs include the duty paid to the Receiver of Revenue, calculated using the following formula based on the purchase price, if a natural person purchases a property:

R0 – R500 000 Exempt
R500 000 – R1 000 000 5%
R1 000 000 and above 8%

South Africa follows a residence based income tax system, meaning that world wide income earned by a South African resident will be subject to ordinary income tax. Non-residents are liable for tax on a more limited basis and their liability is dependent on the source of their gross income being from a South African source.