South Africa Property Guide / Property Investors Information / Real Estate Investment

How secure is my investment? The banking system in South Africa is dependable, established and highly advanced. Transfer of funds through any registered South African Bank is secure and guaranteed. Once the money transfer has taken place, it is usually held in trust by an attorney or real estate company, either on behalf of the purchaser or the seller until registration of transfer. The holding of the funds in trust by an attorney is a cornerstone of the attorney’s practice and is regulated by the relevant Law Societies and secured by the Attorney’s Fidelity Insurance. Can I get my money out of South Africa? The Exchange Control Rulings stipulate that funds brought into the country by a non-resident may be repatriated at any time, as well as any capital gain thereon after deduction of any Capital Gains Tax payable. Can non-residents own property? Non-residents can own property partially or wholly, in their own names or through ownership of an interest in one or other forms of legal entity. What forms of ownership are available? Freehold is the most common form of property ownership. Other forms of ownership include Leasehold, Sectional Title and Share Block. Which is the best form of ownership? The most common form of ownership is that of individual title. Property may also be held through share ownership in companies, through holding membership in Close Corporations or as a beneficiary in a Trust. This choice is usually dependent of decisions related to tax or transfer duty issues, or relating to the protection of assets. Companies and Trusts in South Africa are based on English Law and are very similar in nature to those in England. A Close Corporation is a type of company, which is flexible and cheaper to form and administer than a normal incorporated company. A Close Corporation or a Trust can usually be formed in less than a month. A Proprietary Limited Company may take a few weeks longer.