Can foreigners buy land in South Africa?

Authored by the expert who managed and guided the team behind the South Africa Property Pack

Everything you need to know before buying real estate is included in our South Africa Property Pack

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THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in South Africa. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The AfricanVestor, we explore the South African real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Cape Town, Johannesburg, and Durban. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners buy land in South Africa?

Yes, foreigners can legally buy land in South Africa without any residency or citizenship requirements.

South African property law treats foreign buyers almost identically to local citizens, with very few restrictions on land ownership. This makes South Africa one of the most accessible African countries for international property investment.

As of September 2025, there are no nationality restrictions, no requirements to establish local entities, and no caps on the amount of land foreigners can purchase. The only exceptions involve certain traditional authority areas and some proposed changes to agricultural land laws that are still under consideration.

Foreign buyers have the same property rights as South African citizens, including the right to freehold ownership, which means you own both the land and any structures permanently.

It's something we develop in our South Africa property pack.

What types of land can foreigners buy?

Foreigners can purchase residential, commercial, and most agricultural land in South Africa without restrictions.

Residential land includes vacant plots for building homes, existing houses with land, townhouse complexes, and sectional title properties. Commercial land encompasses office parks, retail centers, industrial sites, and mixed-use developments. Agricultural land covers farms, game reserves, wine estates, and rural properties.

Rural land that isn't classified as agricultural is also available, including land for eco-tourism projects and conservation purposes. Coastal properties are accessible to foreign buyers, though environmental compliance is required for properties within 100 meters of water bodies.

The main exceptions are communal lands under traditional authority control and certain sensitive areas designated by the government for security or environmental protection.

Are there restrictions on foreigners owning land in specific areas of South Africa?

There are very few geographic restrictions on foreign land ownership in South Africa.

Traditional authority areas and communal lands under customary tenure are generally unavailable to foreigners, as these operate under different legal frameworks. Some border areas or military zones may have restrictions, but these affect all buyers, not just foreigners.

Environmental restrictions apply to all buyers near coastlines, rivers, and protected areas, requiring compliance with environmental regulations. Properties within 100 meters of high-water marks need environmental clearances regardless of the buyer's nationality.

As of September 2025, there are no provincial restrictions preventing foreigners from buying in specific cities or regions. Popular areas like Cape Town, Johannesburg, Durban, and the Garden Route are all accessible to international buyers.

Can foreigners buy agricultural or commercial land, or is it restricted to residential land?

Foreigners can currently buy agricultural and commercial land in addition to residential properties.

Commercial land purchases have no restrictions, though operating a business requires proper registration and compliance with local regulations. Agricultural land purchases are currently allowed, but there are proposals to restrict foreign freehold ownership in favor of long-term leases.

Agricultural land purchases above 12 hectares may require government approval, and buyers should monitor potential legislative changes affecting foreign agricultural land ownership. The proposed changes are not law as of September 2025, but they represent a risk factor for large agricultural investments.

Game farms, wine estates, and boutique agricultural properties remain popular among foreign buyers, particularly in the Western Cape and Eastern Cape provinces.

Is there a path to residency or citizenship if a foreigner purchases land?

Buying land in South Africa does not automatically provide residency or citizenship rights.

Property purchase may help qualify for residency under certain financial or investment visa programs, but it is not a guarantee of approval. The South African government offers various visa categories, including retired persons' visas and business visas, where property ownership can support applications.

Investors typically need to meet additional requirements beyond property ownership, such as demonstrating sufficient income, clean criminal records, and health clearances. The investment amount required varies by visa type and is subject to change.

Foreign landowners must maintain valid visas or permits to reside in South Africa legally, regardless of their property ownership status.

Where do foreigners typically buy the most land in South Africa?

The Western Cape, including Cape Town and the Garden Route, attracts the most foreign land buyers.

Coastal regions in KwaZulu-Natal, Eastern Cape, and Western Cape are particularly popular for lifestyle and holiday properties. Game farms and wine estates throughout the country draw significant interest from European, UK, and US buyers.

Cape Town's Atlantic Seaboard, southern suburbs, and winelands command premium prices and high foreign demand. The Garden Route, stretching from Mossel Bay to Port Elizabeth, offers coastal lifestyle properties that appeal to international buyers.

Johannesburg and Pretoria attract foreign buyers interested in commercial properties and residential investments near business centers. Rural areas in Limpopo and North West provinces are popular for game farms and agricultural investments.

What is the step-by-step process for purchasing land as a foreigner?

The land purchase process for foreigners typically takes 6-12 weeks and involves nine key steps.

1. **Research and Due Diligence**: Verify zoning, title deeds, and any land claims or disputes2. **Make an Offer to Purchase**: Negotiate terms and sign a conditional sale agreement3. **Secure Financing**: Arrange mortgage approval or prepare funds transfer (50% deposit usually required)4. **Appoint a Conveyancer**: Hire a qualified attorney to handle the legal transfer5. **Submit Required Documents**: Provide passport, visa, proof of funds, and address verification6. **Pay Taxes and Fees**: Transfer duty, legal fees, and Deeds Office charges7. **Obtain Municipal Clearance**: Ensure all local taxes and services are current8. **Deeds Office Registration**: Complete official ownership transfer9. **Take Possession**: Receive keys and legal ownership documents

Each step requires specific documentation and compliance with South African property laws. Working with experienced local professionals is essential for smooth transactions.

The process can be completed remotely through power of attorney arrangements, though physical presence often speeds up certain steps.

What documents are required for a foreigner to buy land?

Foreign buyers need specific documentation to complete land purchases in South Africa.

A valid passport is the primary identification requirement, along with proof of legal entry into South Africa through valid visas or permits. Proof of foreign address and residence status must be provided to establish non-resident status for tax purposes.

Financial documentation includes bank statements proving source of funds, proof of income for mortgage applications, and foreign exchange declarations for large transfers. Tax clearance or status confirmation from your home country may be required.

FICA (Financial Intelligence Centre Act) compliance requires identity verification, residential address confirmation, and tax status documentation. Marriage certificates or divorce decrees are needed if applicable to property ownership structure.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Africa versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Can a foreigner buy land without being physically present in the country?

Yes, foreigners can buy land in South Africa without being physically present through legal representation.

Remote purchases require appointing a South African attorney with power of attorney to act on your behalf. The power of attorney must be properly notarized and authenticated according to South African legal requirements.

All documentation can be submitted electronically or by mail, including contracts, financial proofs, and identification documents. Video conferencing and digital signatures are accepted for many aspects of the transaction process.

However, some banks prefer in-person meetings for mortgage applications, and viewing properties before purchase is highly recommended. The final registration and key handover can be completed through your appointed representative.

What are the common mistakes and pitfalls when buying land as a foreigner in South Africa?

The most common mistake is failing to investigate land claims or unresolved property disputes, especially for rural and agricultural land.

Many foreign buyers underestimate exchange control regulations for cross-border payments, which can delay or complicate transactions. Not verifying zoning restrictions, environmental compliance, and building rights can lead to costly surprises after purchase.

Assuming that property ownership provides residency rights is another frequent error that can result in visa complications. Some buyers fail to understand the difference between leasehold and freehold ownership, particularly for sectional title properties.

Ignoring proposed land expropriation or reform legislation can create future risks, especially for large agricultural holdings. Inadequate due diligence on title deeds, municipal compliance, and property boundaries often leads to legal complications.

It's something we develop in our South Africa property pack.

What do foreigners usually use land for in South Africa?

Foreign landowners in South Africa typically use their properties for residential purposes, investment rentals, and lifestyle businesses.

Primary residences and holiday homes are the most common uses, particularly in coastal areas and major cities. Buy-to-let investments target both local and international rental markets, with some properties achieving rental yields up to 15% in high-demand areas.

Game farms and eco-tourism ventures attract foreign buyers interested in conservation and hospitality businesses. Wine estates and boutique agricultural operations, especially in the Western Cape, combine lifestyle and commercial interests.

Commercial developments including office parks, retail centers, and mixed-use projects appeal to investors seeking diversified property portfolios. Some foreign buyers develop residential subdivisions or retirement communities targeting international markets.

What are the average prices for land in different regions of South Africa?

Land prices vary significantly across South African regions, with coastal and urban areas commanding premium rates.

Region	Average Residential Price	Price per Square Meter
Western Cape (Cape Town)	R1.8 million	R28,000 - R31,000+
Gauteng (Johannesburg/Pretoria)	R1.3 million	R11,785
KwaZulu-Natal	R1.1 million	R12,500
Eastern Cape	R950,000	R8,500
Free State	R800,000	R6,200
Northern Cape	R750,000	R5,800
National Average	R1.6 million	R13,800

Prime locations in Cape Town's Atlantic Seaboard and Johannesburg's Sandton can exceed R50,000 per square meter. Entry-level properties suitable for foreign buyers typically range from R650,000 to R850,000 in smaller towns and rural areas.

Agricultural land prices vary from R15,000 to R100,000 per hectare depending on location, soil quality, and water rights. Game farms can range from R500,000 to R50 million depending on size, location, and infrastructure.

What is the long-term forecast for the South African land market?

The South African property market is projected to grow modestly at 1.8-3.5% annually through 2026-2027.

Coastal areas and the Western Cape are expected to outperform with growth rates up to 7.7% in 2025, driven by foreign demand and lifestyle migration. Urban centers like Johannesburg and Cape Town should maintain steady appreciation due to ongoing infrastructure investment and economic activity.

Rental yields remain attractive at 8-15% in high-demand segments, particularly appealing to foreign investors seeking income-generating properties. Foreign demand is expected to increase as South Africa's political and economic stability improves relative to other emerging markets.

However, potential policy changes regarding land reform and foreign ownership of agricultural land represent uncertainties that could affect market dynamics. Infrastructure development and improved governance could drive significant appreciation in currently undervalued regions.

What taxes, costs, and fees should a foreigner expect to pay when buying land in South Africa?

Foreign buyers face several mandatory costs when purchasing land in South Africa.

Cost Type	Rate/Amount	Notes
Transfer Duty	0% - 13% (scaled)	0% under R1.1m, higher rates above
Conveyancing Fees	0.5% - 1.5%	Legal transfer costs
Deeds Office Fee	Fixed charges	Government registration fee
Municipal Clearance	Variable	Outstanding rates and taxes
Capital Gains Tax	25% - 33%	On profit from resale for non-residents
Bank/Exchange Fees	1% - 3%	Currency conversion and transfer
Property Valuation	R3,000 - R8,000	Required for mortgage applications

All funds from abroad must be reported to the Financial Surveillance Department of the South African Reserve Bank for exchange control compliance. This requires proper documentation and may involve additional bank charges.

Annual property taxes, insurance, and maintenance costs should be factored into long-term ownership calculations.

Can foreigners purchase land in South Africa with cash, or are there any restrictions?

Foreigners can purchase land in South Africa with cash without any restrictions on payment method.

Cash purchases are common and often preferred by sellers as they eliminate financing contingencies and speed up transaction completion. However, all cash transfers from abroad must comply with exchange control regulations and be properly documented.

Large cash transfers require reporting to the South African Reserve Bank and proof of legitimate source of funds. Banks typically require additional documentation for transactions above certain thresholds to comply with anti-money laundering regulations.

Cash buyers often receive discounts from sellers and have stronger negotiating positions, particularly in competitive markets. The transaction process is typically faster without mortgage approval requirements.

Is it possible for foreigners to get a mortgage in South Africa, and what are the rates and conditions?

Yes, foreigners can obtain mortgages in South Africa, typically up to 50% of the property value.

South African banks offer mortgages to non-residents, but require larger deposits than for local buyers. The standard requirement is 50% down payment from offshore funds, with the remaining 50% financed locally.

Interest rates for foreign buyers are typically 11-13% as of September 2025, which is 1-3% higher than rates offered to residents. Mortgage terms usually range from 10-20 years, with some banks offering up to 25 years for qualified applicants.

Banks require proof of foreign income, affordability assessments showing debt service ratios below 30-35% of monthly income, and comprehensive documentation of financial status. Credit checks from the buyer's home country may be required.

It's something we develop in our South Africa property pack.

What tips can help foreigners secure a mortgage to buy land in South Africa?

Prepare a substantial deposit of at least 50% of the purchase price to meet bank requirements for foreign buyers.

- **Maintain strong foreign income documentation**: Provide at least 6 months of bank statements, salary slips, and tax returns from your home country- **Work with banks that have international divisions**: Standard Bank, FNB, Nedbank, and ABSA have experience with foreign buyers- **Prepare comprehensive financial documentation**: Include proof of assets, investments, and any existing property holdings- **Consider using a mortgage originator**: Specialists can guide you through multiple bank options and requirements- **Plan for currency exchange requirements**: Banks need proof that funds originated from outside South Africa

Engage with banks early in your property search to obtain pre-approval, which strengthens your negotiating position with sellers. Some banks prefer establishing relationships through their international offices before property purchase.

Consider the impact of exchange rate fluctuations on your mortgage payments if your income is in a different currency. Some banks offer foreign currency mortgages to mitigate this risk.

Working with experienced conveyancers who understand foreign buyer requirements can significantly smooth the mortgage approval process.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. The AfricanVestor - Foreigners Buy Land South Africa
2. The AfricanVestor - Buy Land Africa
3. The AfricanVestor - How to Buy Land South Africa
4. Migrate with Q - Can a Foreigner Buy Property in South Africa
5. Nedbank - South African Property Investment for Non Residents
6. Law Offices - How Can I Buy Property in South Africa as a Foreigner
7. South African Lawyer - Permanent Residence South Africa
8. E-Sales International - South Africa Property Market for Foreign Investors
9. Lightstone - Property Newsletter April 2025
10. Property Central - How to Access Mortgage Finance in South Africa