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South Africa’s tax authority, the South African Revenue Service (SARS), is set to gain unprecedented access to information about offshore properties owned by South African taxpayers. This development follows a new global tax agreement that will soon allow SARS to automatically receive detailed reports on foreign immovable property held by South Africans in more than 20 countries.
According to Tax Consulting South Africa, the new move forms part of a wider international campaign designed by governments and global organisations to improve transparency, curb tax evasion, and strengthen compliance with residency-based tax rules. The organisation explained that many South Africans who own homes abroad—whether as investments, rentals, or vacation properties—may now face tighter scrutiny.
Tax Consulting SA noted that once the new system becomes active, properties such as a holiday villa in Portugal, an investment apartment in France, or an Airbnb in Spain will no longer be hidden from SARS if the owner is still classified as a South African tax resident. All income or capital gains generated from such assets will automatically fall under South Africa’s tax net. This means taxpayers will have less room to evade or overlook their reporting responsibilities.
South Africa is one of the 25 jurisdictions that have signed up to the Organisation for Economic Co-operation and Development’s (OECD) new reporting framework. Other participating nations include Belgium, Brazil, Chile, Costa Rica, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Korea, Lithuania and Malta. Countries such as New Zealand, Norway, Peru, Portugal, Romania, Slovenia, Spain, Sweden, and the United Kingdom—along with Gibraltar, a UK overseas territory—are also part of the agreement.
In a joint announcement issued on 4 December 2025, these countries highlighted that property ownership and cross-border financial activities have become more complex in recent years. Many individuals now live in one country while investing in property in another, making tax evasion easier without proper monitoring. The statement stressed the need for tax authorities to gain access to relevant information about non-financial assets held abroad, especially income generated from them.
The OECD’s new system is formally called the Multilateral Competent Authority Agreement on Automatic Exchange of Readily Available Information on Immovable Property (IPI MCAA). The framework aims to close one of the final loopholes in global tax transparency by ensuring that foreign property information becomes as trackable as international bank accounts and crypto-assets.
SARS has welcomed the new agreement, noting that for years, reporting has mainly focused on financial assets under the Common Reporting Standard (CRS) and the Crypto-Asset Reporting Framework (CARF). However, there has been no consistent global structure for reporting non-financial assets like real estate. South Africa plans to adopt the new property-reporting system between 2029 and 2030 after completing legislative adjustments.
When the automatic exchange of property information becomes operational, SARS will receive full visibility into the offshore property market. This includes details of property purchases, ownership structures, and sales transactions. Tax experts have warned that SARS may start asking taxpayers why certain foreign assets were never declared in the past.
Tax Consulting SA advised South Africans living abroad to take tax planning seriously, especially those who have relocated permanently. The group emphasised that properly ending one’s tax residency—through the formal cessation or Financial Emigration process—is crucial. A successful cessation means SARS will no longer tax foreign assets, foreign rental income, or overseas property sales. It also prevents SARS from launching retrospective investigations into offshore wealth.
The advisory firm pointed out that many South African expatriates delay formalising their tax residency status, which could expose them to unwanted liabilities once the automatic exchange starts. It encouraged expats who no longer intend to return home and who own properties abroad to regularise their status before the new reporting framework goes live.
Overall, the new OECD framework marks a major shift in how foreign property ownership will be monitored for South African taxpayers. As SARS prepares to gain direct, automatic access to global real estate information, transparency will no longer be optional. Tax Consulting SA warned that those with foreign investments must act proactively or risk facing unexpected tax bills when the system finally comes into effect.
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