Frequently Asked Questions: Property Acquisition

Yes. Taxes may include transfer duty, VAT, capital gains tax (when selling), and ongoing property taxes. We help structure your investment to minimise exposure.

If you pass away owning property in South Africa, your estate may be subject to South African estate duty. We ensure your ownership structure aligns with your global estate plan. Having a valid Will also ensures your property passes to your chosen beneficiaries, whereas should you die intestate, your assets will be distributed in accordance with the Intestate Succession Act which may not align with your wishes. Estate planning can also provide for liquidity through investments and other structures, which is essential if your estate contains illiquid assets such as immovable property.

Yes, and in some cases, this offers tax and estate planning benefits. We advise on the best structure based on your long-term goals.

Estate planning is the process of structuring your assets (property, investments, businesses) during your lifetime to ensure they are protected, tax-efficient, and transferred smoothly to your heirs or beneficiaries after your passing. The best starting point for protecting your estate is by drafting/ updating your Will.

South Africa has its own inheritance laws and estate duty (a form of tax) and owning property here may affect your global estate. These risk factors include:

·     Dying without a valid Will would result in the Master of the High Court appointing an executor for your estate and this intestate succession process may delay property transfers for months or even years

·     Your heirs may face cash shortfalls if the taxes such as estate duty and capital gains tax are not effectively reduced or managed prior to death, leading them to possibly selling the property to cover the costs

·     Without a Will your minor children will not be able to inherit property directly and their share of your estate would instead be managed by the Guardian’s Fund, where access is limited

These are just a few of the consequences a property owner can face as a result of failing to properly protect their assets. Estate planning ensures that your South African assets align with your overall wealth strategy.

Yes. If you own assets in South Africa, it’s best to have a South African Will to govern how those assets are dealt with. This avoids delays, disputes, and misinterpretation of foreign wills. Having two Wills, one in South Africa and one in your home country, that do not revoke each other would be the best practice in this regard.

Estate duty is a “death tax” on the estate of a deceased person. It is paid by the estate itself and not be the heirs. In South Africa, estate duty is levied on the dutiable value of an estate at a rate of 20% on the first R30 million and at a rate of 25% on the dutiable value of the estate above R30 million.

Yes. Through trusts, companies, or other structuring tools, you can reduce estate duty, simplify succession, and protect your beneficiaries.

Proper planning ensures:

·     Smooth transfer of assets without unnecessary legal delays

·     Protection of minors and vulnerable beneficiaries

·     Reduction of estate duty and capital gains tax

·     Alignment with your international estate plan

Yes. This can be done via a Will or, in some cases, through ownership structures like trusts.

The following documents are necessary:

·     A valid will (local or international, depending on your assets)

·     Property ownership documents

·     Trust deeds (if applicable)

·     Tax records

·     Power of attorney, if needed for incapacity planning

At least every 2–3 years or when major life changes occur (marriage, divorce, birth of a child, acquisition of new property, or moving countries).

Yes. We work with international clients to align South African property ownership with their global estate, tax, and succession goals.