PROPERTY OWNERSHIP BY NON-RESIDENTS

Non-residents (i.e. foreign nationals) introducing capital from abroad to purchase immovable property in South Africa and have it registered in their name. There are no special requirements to effect such registration.

Where a non-resident purchases property in South Africa, the non-resident may borrow up to a maximum of 50% of the purchase price in South Africa, naturally subject to the financial institution's requirements and limitations on amounts to be lent. The remaining 50% of the purchase price must be brought into the country by the non-resident.

Once transfer has been registered, it is advisable to have the title deeds endorsed "Non-Resident" by the Bank through which the funds were introduced from abroad. This will facilitate the removal of such funds at a later stage when such non-resident resells.

In addition to the funds introduced originally, any capital gain realised by the non-resident seller can also be repatriated after deduction of any Capital Gains Tax payable. For purposes of repatriation of funds, the non-resident needs to furnish the Bank with a copy of the Deed of Transfer, the new deed of sale and the Conveyancer's reconciliation statement regarding the finances of the transfer.