South Africa is a beautiful country, well loved by people all around the world and it is not only a popular holiday destination, but a place foreigners would love to call home.

A question we often get asked is “can foreigners buy land in South Africa?”

The good news is that buying land in South Africa as a foreigner is possible. However, there are a few things to be aware of if you are a foreigner wanting to invest in property in South Africa.

In this article, we answer some of the questions you might have about buying land in South Africa as a foreigner.

Does Buying Land in South Africa Secure Residency?

Unfortunately, buying land or property in South Africa does not grant you automatic residency. You can, however, enter the country with one of the following permits:

Temporary Residence Permit

A temporary residence permit is for non-South African citizens who:

• Are taking up employment in South Africa on a work permit
• Are acquiring an existing business in South Africa
• Are starting a new business in South Africa on a business permit
• Have two degrees of kinship to a South African citizen (relatives by blood or by marriage)
• Have two degrees of kinship to a permanent resident of South Africa

Temporary residence permits can be granted for a period of up to four years.

Visitor’s Permit

Issued for a period of up to 90 days, a visitor’s permit is for foreigners who are visiting South Africa for the purpose of a holiday, conducting business, receiving specialized medical treatment, and other short-term activities.

Permanent Residency Permit

A permanent residency permit is applicable to foreigners who have been residing in South Africa on a legal work permit for a minimum of 5 years, as well as their spouses, and to dependents of South African residents or holders of permanent residence permits.

Do I Have to Give up my Passport?

Thankfully, South African citizens and residents are permitted to have dual passports. This means that you do not have to give up your current passport when you become a permanent resident in South Africa.

What About Paying Tax?

As a non-resident buying property in South Africa, you will need to register as a South African taxpayer solely for the purpose of their obligation to pay capital gains tax.

Can a Foreigner Get a Home Loan in South Africa?

Most major banks will offer home loans to foreigners who want to buy property in South Africa, provided they meet the requirements for approval.

You will need to have enough capital to cover the transfer duty and other costs related to the transaction, as well as a deposit of up to 50% of the property’s purchase price.

Additionally, proof of earnings will need to be provided and must comply with the Financial Intelligence Centre Act which governs financial crimes such as money laundering.

Phoenix Bonds – Bond Originators in South Africa

We provide a comprehensive list of bond origination services in South Africa. With many years of combined experience and knowledge in the bond origination sector, Phoenix Bonds works to help you through the home loan application process.

Contact us for more information.