East London's coastline and value for money have made it an increasingly popular choice for foreign nationals and returning expats looking to buy. The good news is that South Africa places relatively few restrictions on foreign property ownership, but there are a few important differences to understand before you start.
Can foreigners actually buy property here?
Yes, foreign nationals can generally buy and own freehold property in South Africa without restriction, with the same rights as South African citizens in most residential transactions. There are limited exceptions, mainly around certain agricultural and state land categories, but standard residential purchases are open to non-resident buyers.
Financing as a non-resident
South African banks generally offer lower loan-to-value ratios to non-resident buyers than to citizens or permanent residents, often requiring a larger deposit, sometimes as much as 50% of the purchase price. It's worth engaging a bond originator early to understand realistic financing terms for your specific residency status before you start house hunting.
Bringing money into the country
Funds used to purchase property must generally be introduced into South Africa through the formal banking system, and your conveyancing attorney will guide you through the exchange control and documentation requirements involved. Keep clear records of how funds were transferred, since this matters both for the purchase and for repatriating proceeds if you sell in future.
Documentation you'll need
In addition to standard FICA requirements, foreign buyers typically need a valid passport, proof of address in their home country, and sometimes additional documentation depending on their specific circumstances, such as a visa or residency permit if applicable. Your conveyancing attorney can confirm exactly what's needed for your situation.
Tax considerations
Foreign owners are subject to South African property taxes, including rates, and capital gains tax applies on eventual resale, with specific withholding tax rules for non-resident sellers. It's worth getting advice from a tax professional familiar with cross-border property ownership before you buy, not just at the point of resale.
Working with a local team
Because financing, documentation, and repatriation of funds all work differently for foreign buyers, it's worth working with an agent, attorney, and bond originator who have direct experience handling these transactions, rather than assuming the standard local process applies identically to your situation.
Considering a purchase from abroad?
Whether you're relocating, buying a holiday home, or investing remotely, our agents regularly assist foreign buyers and can talk you through the practical steps involved for your specific circumstances.
Browse homes for sale in East London or speak to a Bass Property Group agent about buying from abroad.
