How do I buy a farm in South Africa?

Buying a farm in South Africa involves finding the right property, securing financing (agricultural bonds differ from home loans), conducting due diligence on water rights, land claims, title deeds and zoning, and navigating transfer costs. Africa Estate guides buyers through every step.

What is the average price of a farm in South Africa?

Farm prices in South Africa vary enormously by size, location, water availability and land use. Smallholdings can start from R1.5M while large commercial farms and game reserves can exceed R50M. Africa Estate provides free valuations to give you an accurate market picture.

Does Africa Estate operate countrywide?

Yes. Africa Estate operates across Gauteng, Free State, North West, Northern Cape, Eastern Cape, covering a wide range of agricultural and residential property across South Africa.

Buyer Guide

Transfer Duty for Residential Property

Transfer duty is the tax SARS levies on every residential property purchase in South Africa above the R1.21 million threshold. It is paid by the buyer at registration. This guide sets out the 2025/2026 sliding scale, the primary residence considerations, the VAT-versus-transfer-duty position, and the practical consequences for buyers.

Authored by the Africa Estate residential specialist team.

The 2025/2026 SARS sliding scale

SARS transfer duty for the 2025/2026 tax year (effective 1 March 2025) follows the tiered scale below. Calculate from the bracket your purchase price falls in.

R0 to R1,210,000: 0% (no transfer duty)
R1,210,001 to R1,663,800: 3% of the value above R1.21M
R1,663,801 to R2,329,300: R13,614 plus 6% of the value above R1,663,800
R2,329,301 to R2,994,800: R53,544 plus 8% of the value above R2,329,300
R2,994,801 to R13,310,000: R106,784 plus 11% of the value above R2,994,800
Above R13,310,000: R1,241,456 plus 13% of the value above R13.31M

The Africa Estate transfer and bond costs calculator on the homepage uses this exact scale.

Who pays and when

The buyer pays transfer duty into the transfer attorney trust account once the bond is granted and the sale is unconditional. The attorney pays SARS on the buyer behalf, and SARS issues a transfer duty receipt which the deeds office requires before transfer registers. Without the receipt, registration cannot proceed.

VAT versus transfer duty

Two mutually exclusive tax positions apply to residential property in South Africa. Where a VAT-registered property developer sells a new unit (off-plan, new build, recently completed development), VAT at 15% is included in the price and is paid to SARS by the developer. No transfer duty applies. Where a private seller (or any non-VAT-registered seller) sells an existing residential property, VAT does not apply and transfer duty applies on the buyer side per the scale above.

The buyer is told which position applies in the offer to purchase. Most new developments in Gauteng are VAT transactions; most resales of established residential property are transfer duty transactions.

The R2 million primary residence consideration

Transfer duty itself does not have a primary residence exclusion (the R1.21 million threshold applies regardless of intended use). However, the R2 million primary residence exclusion is significant on the SELL side under capital gains tax. When a homeowner sells their primary residence, the first R2 million of capital gain is exempt from CGT. This is one of the most valuable tax positions for South African residential owners.

Practical examples

R1.1 million purchase: R0 transfer duty (below R1.21M threshold).

R1.5 million purchase: 3% of (R1.5M minus R1.21M) = R8,700 transfer duty.

R2.5 million purchase: R53,544 plus 8% of (R2.5M minus R2.329M) = R53,544 plus R13,656 = R67,200 transfer duty.

R5 million purchase: R106,784 plus 11% of (R5M minus R2.995M) = R106,784 plus R220,572 = R327,356 transfer duty.

Other registration-day costs

Transfer duty is one of five typical costs on registration day. The others are: conveyancing fees (Law Society guideline scale, scaled by purchase price); bond registration fees (Law Society guideline scale, scaled by bond amount); the deeds office levy (R1,580 below R1 million, R2,584 above R1 million); and the bank initiation fee (typically around R6,037 on a new bond). Use the Africa Estate transfer and bond costs calculator for a line-item estimate.

Calculate your transfer duty

The Africa Estate transfer and bond costs calculator on the homepage runs the current SARS 2025/2026 scale, conveyancing and bond fees, deeds office levy and bank initiation in one estimate.

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Frequently asked questions

Who pays transfer duty?

The buyer pays. It is paid into the transfer attorney trust account and SARS issues a transfer duty receipt that the deeds office requires before transfer can register. The seller does not contribute to transfer duty.

Is transfer duty the same as VAT?

No. Where a VAT-registered property developer sells a new unit, VAT (15%) applies and is included in the price, and transfer duty is NOT charged. Where a private seller sells an existing residential property, transfer duty applies. The two taxes are mutually exclusive on any given transaction.

Does transfer duty apply to sectional title?

Yes. SARS transfer duty applies identically to sectional title and freehold transactions. The same sliding scale applies. The exemption below R1.21 million applies on both ownership forms.

When was the last transfer duty scale change?

The current 2025/2026 scale took effect on 1 March 2025 with the Minister of Finance Budget Speech in February 2025. SARS reviews the scale annually in the Budget; updates are effective 1 March each year.