August 13, 2025
When buying property in Cape Town, understanding the cost beyond the purchase price is essential. One of the biggest additional expenses is transfer duty, a tax payable to the South African Revenue Service (SARS) when purchasing immovable property. Knowing how it works, when it applies, and how to avoid it can save you significant money and improve your return on investment.
Berman Brothers Group assists buyers in navigating the fine print so they can make confident and informed decisions.
Transfer duty is a government tax charged on the purchase of property in South Africa. It applies to second-hand (previously owned) properties and is calculated according to a sliding scale based on the purchase price. For example, in 2025, properties over R12 million incur a 13% transfer duty. That is more than R1.5 million in tax for a property priced at R12 million before attorney fees are factored in.
In addition to transfer duty, buyers are also responsible for attorney transfer fees. These are generally around 1% of the purchase price and cover the legal process of registering the property in your name at the Deeds Office.
This means on a R12 million purchase, you could be paying:
- R1.56 million in transfer duty
- R120,000 in transfer attorney fees
The most effective way to avoid transfer duty is to purchase directly from a developer in a new development. When you buy off-plan or newly built units from a VAT-registered developer, VAT is included in the purchase price and no transfer duty applies.
This can represent significant savings, especially on luxury properties. For example, buying a R12 million new development unit saves you R1.56 million in tax compared to a second-hand purchase.
“When you buy from a developer, the price includes VAT. No transfer duty is applicable. It is a huge saving.” – Paul Berman, CEO, BBG
At Berman Brothers Group, our developments are sold directly to buyers, meaning you benefit from:
- No transfer duty
- Superior finishes and premium locations
- A proven track record of high resale value on completion
From Dolce Vita to Mont Reve in Sea Point, BBG buyers not only save millions in upfront costs but also secure properties that appreciate in value before delivery.
If you are buying property in Cape Town, understanding transfer duties can make or break your budget. Work with a trusted developer like BBG to take advantage of tax savings and secure high-quality, well-located properties that offer strong long-term returns.
