Emigration Property Calculator
Calculate CGT, Section 35A withholding tax, net ZAR proceeds, and how much reaches your destination after SARB exchange control limits and forex costs
Capital Gains Tax
Selling Costs
Understanding Emigration Property Tax How to use • Rules • Example
How to Use This Calculator
Use the Tax & Proceeds tab to calculate your CGT liability, selling costs, and net ZAR proceeds when selling property as part of emigration from South Africa. If you are already a non-resident, the calculator shows the Section 35A withholding tax that the buyer must deduct.
Switch to Currency Transfer to see how much reaches your destination after SARB exchange control limits, Tax Clearance (TCS), and bank forex spreads. The calculator supports all major emigration destinations.
Key Rules
Key regulations affecting emigrating property sellers:
- CGT: Primary residence exclusion of R2M applies. Non-primary properties: 40% inclusion rate for individuals at marginal tax rate.
- Section 35A: Non-resident sellers face withholding tax (buyer withholds 7.5% individuals, 10% companies, 15% trusts).
- SARB limits: R10M individual foreign investment allowance + R1M discretionary (R20M + R1M for families).
- Tax Clearance: A SARS TCC is required before any foreign transfer.
Worked Example
Johan and Marie are emigrating to the UK. They sell their primary residence in Stellenbosch for R2,500,000. They originally paid R1,200,000 and spent R200,000 on renovations (base cost: R1,400,000).
Capital gain: R2,500,000 - R1,400,000 = R1,100,000. After the R2M primary residence exclusion, the taxable gain is R0 -- no CGT payable.
Selling costs: Agent commission (6% + VAT) = R172,500, compliance certificates ~R3,100. Net proceeds: approximately R2,324,400.
Currency transfer: As a family unit, their SARB limit is R21M (well above their proceeds). After TCS (~R13,244) and bank forex spread (~R34,866), approximately R2,276,290 is converted. At R1 = GBP 0.042, they receive approximately GBP 95,604.
Using a specialist forex broker instead of their bank could save them ~R11,600 (0.5% better rate), yielding an extra GBP 487.
Frequently Asked Questions
What is Section 35A withholding tax for non-resident property sellers?
When a non-resident sells property in South Africa for more than R2 million, the buyer is legally required to withhold a percentage of the purchase price and pay it to SARS. The rates are: 7.5% for individuals, 10% for companies, and 15% for trusts. This withholding is credited against your actual CGT liability. If the withholding exceeds your CGT, you can claim a refund from SARS.
How much money can I transfer out of South Africa when emigrating?
Each South African tax resident has a R10 million foreign investment allowance per calendar year (R20 million for a family unit) plus a R1 million single discretionary allowance. Amounts exceeding these limits require special approval from the SARB Financial Surveillance Department. A valid SARS Tax Clearance Certificate (TCC) is required for any transfer exceeding R1 million.
What is the difference between financial emigration and tax emigration?
Since March 2021, formal financial emigration has been abolished. It has been replaced by a tax and exchange control process. You can now transfer funds abroad using the foreign investment allowance without formally emigrating. For tax purposes, you become a non-resident when you cease to be "ordinarily resident" in SA or fail the physical presence test. SARS determines your tax residency status independently of SARB exchange control status.
Do I need a tax clearance certificate to sell property when emigrating?
Yes. You need a SARS Tax Clearance Certificate (TCC) to transfer any amount exceeding R1 million out of South Africa. The TCC confirms your tax affairs are in order. Apply through SARS eFiling. Processing takes 21-30 business days. Ensure all outstanding tax returns are filed before applying. Non-resident sellers also need a TCC specific to the property disposal.
Can I avoid double taxation on property gains when emigrating?
South Africa has double tax agreements (DTAs) with over 80 countries including the UK, US, Australia, Canada, and most EU nations. Generally, immovable property gains are taxed in the country where the property is located (South Africa), and a foreign tax credit is given in your new country. Consult a cross-border tax specialist to ensure you claim all available credits and avoid double taxation.