Buying property in South Africa with offshore company

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Buying a property in South Africa with a BVI company. The corporate CGT rate here is 22.4% and there is no DTA between SA and BVI. Any idea if my company would need to pay the 22.4% upon disposal?
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
The BVI would need to be registered in ZA as a external company firstly before it can buy property. Secondly you will have to pay CGT. In fact when selling and where property is valued at more than R2m a 7.5% provisional CGT withholding tax is applied and paid to SARS.

However if you are merely transferring ownership of the shares of the BVI to the new owner and the BVI remains owner CGT may be circumvented but I doubt it. Speak to a good tax advisor on that part.
 

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