Chesterton South Africa

Capital Gains Tax and Selling a property as a non resident of South Africa.

Any person buying a South African property valued at R2 million or more from a non-resident carries the full responsibility for seeing that a specified percentage of the selling price is withheld to cover Capital Gains Tax on the property. S A Revenue Services has implemented this collection method to avoid the difficulties of trying to collect Capital Gains taxes from people living out of the country.

So whilst the buyer is held responsible, this does not mean that the non-resident seller can avoid this tax - so be prepared for this tax to be withheld, usually done via the conveyancing attorney.  If in any doubt as to the seller’s residency status, it is important that the buyer (or his agent) gets an affidavit from the seller affirming his nationality and residency status.  If there is any doubt in the matter, the courts can apply for a “days spent in South Africa” formula but anyone unsure of their residency status, should take legal advice.

Capital Gains taxes are calculated at 5% for a natural person, 7.5% for a company or close corporation and 10% for a trust, which has to be paid within 14 days of the transfer being registered.     It may be provident for the non-resident seller to approach SARS for a directive confirming the amount that needs to be paid, as in some cases, it may be lower than the stipulated percentage.
Source: “Agent” July 2011

 

Compliance certificates required when selling your home

To enable the conveyancer to carry out the transfer of a home from one owner to another, traditionally Capetonian homeowners have had to get an Electrical and Beetle Certificate (for all exposed wood) prior to registering the transfer. But since the passing of new municipal laws and bylaws, it is now essential, in addition to the Electrical and Beetle Certificates, to obtain a Gas Certificate (issued by an authorised gas dealer) where applicable and a Plumbing/Water Certificate (issued by a registered plumber).

Quite frequently the electrical contractors issuing the certificate report that when problems appear they have often been caused, not by the original builders, electricians and plumbers but by ‘others' - particularly security gate, satellite and gas appliance installers. The work of these people, coming later on to the property, is not inspected by a clerk of works and quite often the installation is "irregular". For example, the electrical fitting is not earthed or a geyser does not provide an extension overflow.

Whenever work is done on any electrical, gas or plumbing installation, the contractor should be asked for a certificate specifying exactly what his job has encompassed:  he should provide a detailed report covering every aspect of the work completed.  If the owners have doubts, they should report these to the relevant authority and then ask them to check that the installations comply with the regulations.  If the work is non-compliant the authority will then take it upon themselves to ensure that it is put right by the contractor.
Source: Real Estate Web

 

Property Rights in South Africa

The right to property is enshrined under section 25 of the Constitution of the Republic of South Africa Act, 1996. It states that nobody may be deprived of property except in terms of law of general application, and no law may permit arbitrary deprivation of property. South Africa's Constitution was the result of remarkably detailed and inclusive negotiations - difficult but determined - that were carried out with an acute awareness of the injustices of the country's non-democratic past. It is widely regarded as the most progressive constitution in the world, with a Bill of Rights second to none.
There must be few places in the world where constitutional rights feature as much in public and private discourse, and there has been no hesitation in testing the provisions and implications of the Bill of Rights in the Constitutional Court.
Source: extracts from Justlanded.com

 

Property Registration in South Africa

The registration of rights in land and other immovable property is regulated by the Deeds Registries Act, 1937, and South Africa boasts one of the world’s most efficient and sophisticated systems of land registration. Every piece of land is shown on a diagram and ownership recorded in one of the regional Deeds Registries, where documents are available for public viewing. The system does provide owners with security of title.
Although South Africa still recognises an old system of 99-year leasehold, the main real right in land is that of ownership, similar to the UK system of freehold title, and most land in South Africa is privately held by outright ownership. The separate ownership of buildings or parts of buildings in a development is recognised by the Sectional Titles Act, 1986.
Source: justlanded.com

 

Finding gold or diamonds

South Africa is rich in mineral wealth and the Mineral and Petroleum Resources Act, 2002 separates the rights to minerals in and under land from the ownership of the surface rights to the land, so buying a property in South Africa doesn’t entitle you to set up a gold mine in the garden! (Sorry!)
Source: justlanded.com

 

New Chesterton South Africa Website Launched

Welcome to the Chesterton South Africa Website, we hope you will find it a useful tool in your search for the ideal property; be it for recreational, residential, or investment purposes. You may either use the general property search on the left, to help you get a feel of what is currently available, or alternatively you can use advanced search, which has more features, and which will aid you in gradually narrowing down the options to the property of your liking.

Please let us know if there is anything we can assist you with or if you would just like a little bit more information about Chesterton South Africa.

The Chesterton South Africa Family.

 

International Property Showcase – Latest properties for sale in Italy, Spain, the Caribbean, Portugal, Gibraltar, Turkey and Switzerland (and more)

With Chesterton Real Estate South Africa’s links to the internationally renowned company, Chesterton Humberts in the U.K., the local company is proud to showcase prime properties for sale around the world. South African buyers looking to relocate or invest in property beyond South Africa’s borders can download the very latest prestigious properties on offer on the link http://www.chesterton.co.za/international-properties.php. PDF brochures from several countries are updated every month with the latest offerings and currently Switzerland, France, Gibraltar, Spain, the Caribbean and Italy have exciting properties for sale. So whether you are looking for your own apartment at the Verbier ski slopes, a villa on the beach in Barbados, or an historic 4 story terraced house in Siena, Italy, you can make a local call to one of South Africa’s sales people for further information and we will get the International office to contact you. Call Lynda at 0825504614 or email lynda@chestertonza.com

Properties updated every month

 

POSITIVE CHANGES IN TRANSFER DUTY – 2011/2012 GOVERNMENT BUDGET

In respect of all transactions signed on or after the 23rd of February 2011, the transfer duty in respect of natural persons and or other entities such as companies, close corporations and trusts will be as follows:



Major change: Previously Companies, Close Corporations and Trusts paid 8% transfer duty irrespective of the purchase price which made it very expensive to purchase properties in legal entities. From the 23rd of February 2011 Companies, Close Corporations and Trusts will pay the same transfer duty as natural persons.
The above changes in transfer duty tariffs will be a great boost to the property industry and should be welcomed by everyone involved.

Example: Purchase of property valued at R6million by Trust or company:

3% of R399,999.99 = R12,000
Set fee R12,000 plus 5% of R500,000 = R37,000
8% on balance = R360,000. Total transfer duty = R409,000 (Previously R480,000)
Info provided courtesy of Dykes Van Heerden Inc.