Africa-Press – South-Africa. The South African Revenue Service (SARS) is about to gain unprecedented insight into South Africans’ offshore property holdings.
A new global tax agreement will soon allow SARS to automatically receive detailed information about foreign immovable property owned by South African taxpayers in over 20 countries.
According to Tax Consulting SA, this is part of a broader international effort to improve transparency and enforce residency-based tax obligations.
“This means that your holiday villa in Portugal, your investment apartment in France, or your Airbnb in Spain will soon be visible to SARS if you are still considered a South African tax resident,” Tax Consulting SA explained.
Any rental income or capital gains from these properties will now fall squarely under South Africa’s tax net, leaving little room for oversight.
South Africa is one of 25 jurisdictions that have committed to the Organisation for Economic Co-operation and Development’s (OECD) new reporting framework.
This framework enables the automatic exchange of information on non-financial assets—particularly immovable property—to strengthen global tax law enforcement.
Participating countries include Belgium, Brazil, Chile, Costa Rica, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Korea, Lithuania, and Malta.
Others include New Zealand, Norway, Peru, Portugal, Romania, Slovenia, Spain, Sweden, and the United Kingdom, as well as Gibraltar, the UK’s overseas territory.
In a joint statement released on 4 December 2025, these jurisdictions noted that ownership and transactions involving immovable property increasingly have cross-border elements.
“There is a growing need to ensure that tax authorities have access to relevant information on non-financial assets held abroad, as well as any income derived from them,” Tax Consulting SA said.
The OECD framework, known as the Multilateral Competent Authority Agreement on Automatic Exchange of Readily Available Information on Immovable Property (IPI MCAA), is designed to close one of the last gaps in global tax transparency.
Compliance will become non-negotiable
SARS welcomed the new framework and said that until now, global reporting primarily focused on financial assets and crypto-assets under the Common Reporting Standard (CRS) and the Crypto-Asset Reporting Framework (CARF).
No comparable system existed for non-financial assets such as foreign property. South Africa intends to implement the new reporting rules by 2029 or 2030, following completion of the necessary internal legislative processes.
Once automatic property reporting begins, SARS will have comprehensive visibility of offshore property holdings and may question why certain assets were never declared.
Tax Consulting SA emphasised the importance of proper tax planning for South Africans living abroad. A correctly executed cessation of tax residency ensures that your foreign assets are not taxed by SARS.
Additionally, foreign rental income is not subject to South African tax, property sales overseas cannot trigger capital gains tax in South Africa, and SARS cannot retrospectively investigate your offshore wealth.
For South African expats who have left the country permanently, do not intend to return, and have purchased property abroad, undergoing the Financial Emigration process should be a priority.
Tax Consulting SA warned that before automatic global property reporting goes live, it is crucial to formalise your tax residency status.
This will protect your foreign investments from South African taxation and prevent potential disputes in the future.
The new OECD framework represents a significant shift in how offshore property will be treated for South African taxpayers.
With SARS preparing to gain direct access to information on immovable property abroad, transparency and compliance will become non-negotiable.
“South Africans with foreign assets must now take proactive steps to ensure that they are fully compliant with residency-based tax laws, or risk unexpected tax obligations when automatic reporting begins,” Tax Consulting SA.
For More News And Analysis About South-Africa Follow Africa-Press
