Non-residents buying/selling immovable property in South Africa

Writer: LB Vorster.

In South Africa there are currently no restrictions on ownership of fixed property by non-residents (provided they are not classified as illegal immigrants) and therefore all information supplied in previous articles in this series on the purchase and sale of fixed property will similarly apply to non-residents, irrespective of whether they are individuals or legal entities.

As an alternative to individual ownership, non-residents may own fixed property through shared ownership in a company (South African or foreign). However, there are certain procedures that have to be followed and requirements that have to be complied with in the event of a foreign company purchasing fixed property in South Africa:

• The company, although registered as such elsewhere in the world, will also have to be registered in South Africa;

• The South African resident public officer will have to be appointed for a South African company should shares in the said company be owned by a non-resident.

In addition, there are certain restrictions on the granting of mortgage loans to non-resident purchasers of fixed property, whether individuals or legal entities:

Click below to read more. (The full article can be found on page 15)