From next month, consumers buying property valued at less than R1 million will no longer be required to pay transfer duties, the National Treasury announced on Wednesday.
This comes after the National Treasury announced in 2017 that home buyers and property investors looking to buy property below the market value of R750 000 no longer needed to pay transfer duties.
“The brackets to calculate transfer duties on the sale of property, last adjusted in 2017, will be adjusted for inflation from 1 March 2020. No transfer duty will be liable on the purchase of property with a value below R1 million.”
Consumers buying property valued between R1 000 001 and R1 375 000 will be liable to transfer duty costs of 3% of the property value.
Those purchasing a property between R1 375 001 to R1 925 000 will be charged R11 250 plus 6% of the total value of the property in transfer costs.
The National Treasury said R44 250 plus 6% will be charged on property valued above R1 925 000; while those buying property north of R2 475 000 will part with R88 250 and an additional 11% in transfer duties.
Wealthy spenders acquiring property valued above R11 million - such as those in the leafy neighbourhoods of Bishopscourt in Cape Town and Hyde Park in Johannesburg - will part ways with transfer duties of just over R1 million plus 13% of the value of the property. – SAnews.gov.za
