Cross-border property reporting: Access to immovable property information

Enhanced landscape of common reporting between countries - readily available information on immovable property

South Africa together with several other countries (Belgium, Brazil, Chile, Costa Rica, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Korea, Lithuania, Malta, New Zealand, Norway, Peru, Portugal, Romania, Slovenia, Spain, Sweden and the United Kingdom), issued a joint statement published on 4 December 2025, committing to international cooperation by delivering transparency through automatic exchange of information on immovable property. In the past, the information exchanged was limited to financial assets (through the Common Reporting Standard) and crypto assets (through the Crypto-Asset Reporting Framework).

The abovementioned countries recognise that cross-border elements, due to ownership and transactions involving immovable property, requires improved mechanisms to ensure that tax authorities have access to relevant information on immovable property assets held, and income derived therefrom abroad to enforce tax laws effectively. Therefore, a new Multilateral Competent Authority Agreement on Automatic Exchange of Readily Available Information on Immovable Property (IPI MCAA) between tax authorities has been developed by the OECD to enhance the exchange of information on immovable property.

While some South Africans acquire immovable property internationally, foreign investors are investing billions into South Africa’s real estate sector. An article published by BetterBond in January 2026 states that, according to their National Head of Sales, overseas buyers account for 40% of all property transactions above R10 million in the Western Cape with a growing interest in high-demand regions in KwaZulu-Natal and Gauteng. This expansion of international investment in immovable property in South Africa reflects the increase in cross-border transactions with potential exposures to South African tax and other legislation.

For example, the ownership of immovable property for the purposes of trade by a foreign incorporated company results in the entity conducting business in South Africa and may require obligations in terms of the Companies Act to register as an external company. Also, as any income derived from the immovable property would be regarded as South African sourced, such income may be subject to Income Tax in South Africa and if taxable supplies exceed R 2.3 million[DS1.1][CG1.2] effective 1 April 2026, Value Added Tax applies.

In addition, upon the sale of immovable property situated in South Africa and owned by a non-resident, whether a foreign company[DS2.1][CG2.2] (excluding external companies registered in South Africa), individual or trust, certain withholding tax obligations may apply in terms of section 35A of the Income Tax Act. In such cases, a percentage of tax must be withheld from the amount payable and paid over to the South African Revenue Service (SARS):

7,5% of the amount payable, if the seller is a natural person;
10% of the amount payable, if the seller is a company; and
15% of the amount payable, if the seller is a trust

Non-compliance can arise unintentionally and so to mitigate the risk of fines or penalties triggered through common reporting, it is essential to stay ahead of your compliance obligations and be fully informed of what they entail.

RSM South Africa is part of a global network of 120 countries, providing access to cross-border services with specialist professionals who collaborate and are well equipped to assist our clients navigate an ever-changing landscape of real-time common reporting between tax authorities in different countries.

If you are [DS3.1][CG3.2]seeking advisory and or compliance services, whether as a foreign investor or a South African individual, please reach out to us. Our team offers tailored Private Clients and Family Office Services designed around your needs. You can learn more at: Private Clients and Family Wealth.

Cynthia Gatsi
Senior Manager: Tax & Financial Advisory