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A Fin24 user wants to know about the tax implications of her foreign fiancé providing her with money to buy property in SA. She writes:
My fiancé is not a South African resident. He works and resides in Europe.
We are interested in buying a piece of land in a complex for R530 000 and build a house.
My fiancé will pay for the land, but we decided to have it registered and transferred in my name only.
The money will be paid directly to the seller's attorney's trust account.
Will this transaction attract donations tax? Are there any tax implications to this?
Deborah Tickle, director of international corporate tax at KPMG, responds:
A non-resident is not subject to donations tax in South Africa.
Your fiancé would, however, be wise to check the tax laws of the country of which he is a tax resident to ensure there are no related taxes there.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.
Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
My fiancé is not a South African resident. He works and resides in Europe.
We are interested in buying a piece of land in a complex for R530 000 and build a house.
My fiancé will pay for the land, but we decided to have it registered and transferred in my name only.
The money will be paid directly to the seller's attorney's trust account.
Will this transaction attract donations tax? Are there any tax implications to this?
Deborah Tickle, director of international corporate tax at KPMG, responds:
A non-resident is not subject to donations tax in South Africa.
Your fiancé would, however, be wise to check the tax laws of the country of which he is a tax resident to ensure there are no related taxes there.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.
Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
