South Africa

Rental Income Tax, Effective Tax Rates (%) - South Africa Compared to Continent

Footnote

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Tanzania	31.45%
Kenya	30.00%
Ghana	15.00%
Uganda	15.00%
Cape Verde	14.00%
Mauritius	12.00%
Nigeria	10.00%
South Africa	7.23%
Botswana	4.17%
Namibia	0.00%

 

 

South Africa: Rental income taxes (%).

The tax levied on the average annual income on a rental apartment/property in the country.

Assumptions:

• Gross rental income is €/US$1,500/month
• The property is personally directly owned jointly by husband and wife
• Both owners are foreigners and non-residents
• They have no other local income
• There is no mortgage, i.e., no loan is taken for the purchase

In arriving at the pre-tax profit figure, we calculate, and deduct:

• Depreciation / capital allowances – if available. We assume a value for the apartment based on our valuation research, and depreciate on this basis.

We deduct any other costs which a landlord normally pays - management charges, buildings insurance, realtor agency fees, etc. We either choose a standard percentage deduction (if available) or typical ‘actually incurred’ costs. If real estate tax is normally payable by the landlord, we deduct that.

Our rental income tax figures are provided by accountants (see list of contributors). For more details see the Data FAQ.

Source: Global Property Guide Research, Contributing Accounting Firms

 

South Africa does not publish official house price statistics, but ABSA Group releases good house price data. ABSA has a monthly house price index and quarterly property projections. General economics statistics are available from the Reserve Bank of Africa and the First National Bank (FNB). FNB releases quarterly economic forecasts as well.