What transfer duty is
Transfer duty is a tax the buyer pays when a property changes hands. SARS sets it on a sliding table: nothing on the first R1,210,000, then 3%, 6%, 8%, 11% and 13% on each slice of the price above that. Like income tax, each rate applies only to the part of the price inside its band.
When it’s paid
The buyer must pay within six months of buying the property. Your conveyancer usually arranges the payment as part of the transfer. If it’s paid late, SARS charges interest at 10% a year for each completed month.
When there’s no transfer duty
When the seller is registered for VAT and sells the property as part of the business, for example a developer selling a new home, the sale carries VAT instead and no transfer duty is due. The VAT is usually already in the price.