Finance · South Africa
Should You Transfer Investment Properties to a Private Company?
Moneyweb · 2026/02/26
Summary
Many South Africans with investment properties wonder if transferring them to a private company is a good idea. This move can offer benefits, such as easier management and potential tax advantages in the future. However, it's not without costs. When you transfer properties to a company, you may face capital gains tax and transfer duties, which can be expensive. The process can be complicated and may require careful planning, especially if trusts are involved. It's important to weigh the upfront costs against possible long-term benefits. Consulting a financial advisor or tax expert can help you decide if this step aligns with your investment goals and financial situation.
OnABudget takeaway: Transferring investment properties to a company could save money later but comes with immediate tax costs. Small investors should carefully consider if the upfront charges are worth the long-term benefits before making a decision.