Foreign Real Estate now in SARS to Sights: What South Africans Need to Know
- Michael Kransdorff
- Dec 23, 2025
- 2 min read
South African taxpayers who own foreign real estate— whether a London flat, a holiday home in Provence, or property in Lisbon — are facing a major compliance shift.
SARS has recently signed up to an automatic exchange of information agreement on foreign property that will mean tax authorities abroad share ownership, rental income, and disposal data with SARS. In short: SARS will soon know about your foreign real estate even without you telling them.
What’s Changing?
South Africa joined the Multilateral Competent Authority Agreement on the Exchange of Information on Immovable Property (IPI-MCAA).
Once implemented, SARS will automatically receive:
Ownership details (including beneficial ownership)
Rental income information
Sale and capital gains data
Ownership through companies, trusts, nominees, or other structures
This closes what was once a blind spot in SARS’ tax transparency framework — foreign property was largely not part of international automatic tax reporting systems like CRS or FATCA.
When Will SARS Implement This?
This isn’t immediate. Reporting is expected to start around 2029 after South Africa finalises domestic legislation and establishes bilateral reporting links with partner jurisdictions.
Which Countries Are Participating?
Many popular destinations for South African investors and emigrants — including the UK, New Zealand, France, Spain, Portugal, Ireland and others — are part of the agreement.
The United States is not currently a signatory to this particular real estate reporting agreement, though financial account data from the US has long been reportable to SARS under FATCA.
Why This Matters for SARS
This is a fundamental shift. Once SARS receives this data:
Non-disclosure of foreign rental income will be easier to detect.
Unreported capital gains on foreign property sales could trigger liabilities.
Exchange control violations will be visible.
Structures such as offshore companies and trusts will no longer hide beneficial ownership.
Put bluntly: SARS will have third-party confirmation of foreign property that can be matched against your tax returns.
What Should You Do Now?
The window before reporting begins is a prime opportunity to get compliant:
1. Take an Inventory of Your Foreign Real Estate
All foreign properties owned directly or indirectly
Rental history
Disposal history
Funding sources and exchange control approvals
2. Check Your SARS Tax Filings and ensure:
All rental income was declared in your South African tax returns
Foreign property declared as part of your assets and liabilities statements
3. Consider SARS Voluntary Disclosure Programme (VDP)
If you find gaps or errors in historic reporting:
The VDP can regularise affairs with reduced penalties and no criminal exposure
Once SARS has automatic has your foreign property data, VDP relief may no longer be available
4. Review Tax Residency Status with SARS
Formally ceased your South African tax residency in South Africa (colloquially called financial emigration) would exempt you from foreign properties reporting and tax liability in South Africa
SARS New Era of Transparency for Foreign Real Estate
The last major blind spot in global tax transparency is now disappearing. For South Africans with offshore property, the question is no longer if SARS will know — but when. Acting now to regularise your South African tax affairs before its too late.
Read more here on our views on the new agreement:
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