Agricultural land could best be described as rural land situated outside the urban edge, which is generally farm land and is usually already zoned for agricultural use. Agricultural land falls under the control of the Minister of Agriculture and cannot be subdivided or a portion leased for more than 10 years without the minister's express consent, although there has been a recent court challenge with regard to the definition of agricultural land. Rezoning of agricultural land also requires the relevant consents and the compliance with fairly stringent criteria. When purchasing or selling farming property there are a number of considerations which must be taken into account and Herold Gie will ensure that the sale is structured correctly.

Some important issues to be canvassed would be:

• The income tax and capital gains tax implications of the apportionment of the purchase price between the land, the machinery and equipment and any stock/ crops etc.
• The VAT implications i.e. whether or not the sale would qualify as a going concern.
• The provisions of the country's labour laws in so far as any existing employees are concerned.
• The statutory rights of any occupants of the farm to remain on the farm.
• The water rights which the farm enjoys and the registration of such.
• Whether any special zoning is required for the relevant farming activity.


It is important to note that, although the government has embarked on a land redistribution policy, there are at present no restrictions on ownership of agricultural land by foreigners in South Africa.


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