What it costs to sell a home in South Africa

Commission in South Africa is commonly 5% to 7.5% of the selling price, plus VAT at 15% when the agency is registered for VAT. No law or regulator sets the rate. It is agreed between you and your agent, and it is negotiable.

Any home loan still owing is settled from the proceeds when the sale registers. Your bank and the cancellation attorney charge for cancelling the bond, and notice periods and early settlement charges vary from loan to loan, so ask your bank for a cancellation figure as soon as you decide to sell.

Budget 2026 announced that the first R3,000,000 of gain on your primary residence is excluded from capital gains tax, for tax years from 1 March 2026. The enacting Bill was still before Parliament at our last review.

On second homes and investment property, 40% of an individual’s gain is added to taxable income, after an annual exclusion of R50,000 (also as announced in Budget 2026). That makes the highest effective rate 18%. For tax purposes the sale takes place when the agreement is signed, not when transfer registers.

When a non-resident sells for more than R2,000,000, the buyer withholds 7.5% of the full price for an individual (10% for a company, 15% for a trust) and pays it to SARS as an advance on the tax due. A SARS directive can reduce it, and it is worth applying for early.