Guide for buyers living in South Africa
Buying property abroad from South Africa
Rules last checked 30 October 2026 · 9 official sources · Education, not financial, tax, legal or immigration advice.
What a buyer living in South Africa meets before and after buying a home abroad: sending the money out, tax at home on the rent and the sale, and the forms to file.
The three things to know
- Sending money abroad
South Africa lets a resident adult send up to ZAR 2,000,000 a year abroad for any legal purpose without a tax compliance PIN, and up to ZAR 10,000,000 more a year as a foreign capital allowance with one, as at 8 April 2026.
- Tax at home
South African residents are taxed on worldwide income, so rent and gains from a home abroad count, with a rebate for foreign tax paid. For an individual 40 percent of a net gain is taxed, a maximum effective rate of 18 percent.
- Reporting at home
A resident reports foreign income, foreign capital gains and totals of foreign assets on the annual individual return, and the bank reports each transfer abroad under a balance of payments category.
Sending money abroad
A limit
- Rule
A resident individual aged 18 or over may use a single discretionary allowance of ZAR 2,000,000 per calendar year for any legal purpose abroad, including investment, with no tax compliance status PIN needed for amounts within it. Exchange Control Circular 6/2026 raised it from ZAR 1,000,000 with effect from 8 April 2026.
- Limit
2,000,000 ZAR per calendar year
- From
8 April 2026
An approval
- Rule
A resident individual aged 18 or over who is a taxpayer in good standing may transfer up to ZAR 10,000,000 per calendar year as a foreign capital allowance for investment abroad. The bank verifies the individual's tax compliance status through a SARS tax compliance status PIN before the transfer.
- Limit
10,000,000 ZAR per calendar year
An approval
- Rule
Current transfers above the single discretionary allowance are considered by the Financial Surveillance Department once the genuine nature of the transfer is shown, without a tax compliance status PIN. Additional transfers of a capital nature above it follow the capital transfer rules in section B.2(B) of the Authorised Dealer Manual, which need a tax compliance status.
- From
8 April 2026
A report
- Rule
The authorised dealer must report the purpose of the funds abroad under the correct category on the balance of payments reporting system. The category list for resident individuals includes an investment category for property under the investment allowance and a separate one for investment outside it.
A restriction
- Rule
Funds sent under these allowances may not be used to acquire an interest in a South African asset, directly or indirectly, and may not be brought back as a loan to a South African resident. The Reserve Bank calls this a loop structure.
No restriction found
- Rule
Income earned abroad on or after 1 July 1997 may be retained abroad, so rent from a foreign property can stay in a foreign account.
- From
1 July 1997
For buying a home abroad
- Rule
The rules do not single out a foreign home: a purchase abroad is paid from the single discretionary allowance or the foreign capital allowance as an investment abroad, and the bank reports it under a property investment category.
Tax at home
A person is resident if ordinarily resident in South Africa, or, if not, physically present for more than 91 days in the tax year and in each of the five preceding years and for more than 915 days in total across those five years. A person exclusively resident of another country under a treaty is not treated as resident.
Rent from a home abroad
- Rule
A South African resident is taxed on worldwide income, so net rent from a home abroad is added to taxable income at the personal scale, which runs from 18 percent to 45 percent for the 2026/27 tax year.
Gain on selling a home abroad
- Rule
- A resident disposing of a property abroad has a capital gain on all property whether in South Africa or not.
- For an individual, 40 percent of the net gain is added to taxable income, a maximum effective rate of 18 percent.
- The first ZAR 50,000 of gains in a year is excluded, and a ZAR 3,000,000 gain or loss on a primary residence is excluded.
Wealth or property tax on foreign assets
- Rule
Estate duty applies to the worldwide property of a person ordinarily resident in South Africa, at 20 percent up to ZAR 30,000,000 of the dutiable amount and 25 percent above it. The SARS taxation guide lists no annual wealth tax among the taxes it covers.
Relief for tax paid abroad
- Rule
A resident may claim a rebate or deduction for foreign tax paid on foreign sourced income under section 6quat, limited to the South African tax on that income, or relief under a tax treaty, but not both for the same income. Unused credits carry forward for up to six years from the 2025 tax year.
How Freeholt models South Africa residents with property abroad
Reporting at home
Income tax return for individuals (ITR12)
- Who
A resident individual who must file a return, with foreign income, foreign capital gains and foreign interest and dividends reported in rand
- Threshold
No separate amount for foreign rent; the return asks whether any foreign income or foreign capital asset disposal occurred
- Deadline
Set each year by the Commissioner in the annual notice for returns
- Covers a foreign home
Yes
Statement of foreign assets and liabilities (section of the ITR12)
- Who
A resident individual completing the ITR12
- Threshold
Totals at cost and at market value; foreign currency cost is converted at the rate at the end of the tax year of acquisition
- Deadline
With the ITR12
- Covers a foreign home
Yes
Exchange control reporting by the authorised dealer
- Who
The bank, for each transfer abroad
- Threshold
Every transfer under the allowances
- Deadline
At the time of the transfer
- Covers a foreign home
Yes
Where to look
Choose a country to see what its rules say for a buyer with a South Africa passport living in South Africa.
Check a country for a passport
Australia
Depends on the propertyPassport: South Africa. Buyer lives outside Australia. Reading for a home.
Different property types carry different readings. The country guide lists each one.
Australia requires a foreign person to obtain foreign investment approval before buying residential land, and from 1 April 2025 to 30 June 2029 buying an established dwelling is generally banned, while vacant land and new dwellings stay open with approval. Australian citizens, permanent residents and eligible New Zealand citizens are not caught.
Rules last checked 29 October 2026
What is changing
- From the 2025 tax year, SARS keeps unused foreign tax credits and carries them forward automatically for up to six years.
- The Reserve Bank stated on 3 March 2026 that a framework for a synthetic financial centre will be published for comment during 2026.
Questions people ask
What if a South African resident sends more than the single discretionary allowance abroad for a property?
Amounts within ZAR 2,000,000 a year need no tax compliance PIN. A capital transfer above it follows the foreign capital allowance of up to ZAR 10,000,000 a year, which requires a SARS tax compliance status PIN, and the bank reports the purpose under a balance of payments category.
What if a South African resident spends part of the year abroad?
Residence turns on ordinary residence, meaning the person's real home, or on the physical presence test of more than 91 days in the year and in each of the five preceding years and more than 915 days in total across them. Time abroad does not on its own end residence.
How does South Africa tax rent from a home abroad?
The net rent is part of worldwide taxable income at the personal scale of 18 to 45 percent for 2026/27. A rebate for foreign tax paid is available under section 6quat, or relief under a treaty.
What if a foreign property is sold at a gain?
For an individual 40 percent of the net capital gain is included in taxable income, a maximum effective rate of 18 percent, after a ZAR 50,000 annual exclusion. Foreign tax paid on the gain may be credited.
How does the foreign tax credit work?
The credit is limited to the South African tax on the foreign income. From the 2025 tax year unused credits carry forward automatically for up to six years. A resident cannot claim both the rebate and treaty relief for the same income.
Does South Africa have an annual tax on owning a home abroad?
The SARS taxation guide lists none. Estate duty does reach worldwide property of a person ordinarily resident in South Africa, at 20 percent up to ZAR 30,000,000 and 25 percent above.
Where is a foreign property declared?
The annual individual return asks about foreign income and foreign capital asset disposals and contains a statement of foreign assets and liabilities at cost and market value.
What if rent from the foreign property is left in a foreign account?
Exchange control allows income earned abroad to be retained abroad. The rent is still part of taxable income in South Africa for a resident.
What is still open
These points could not be confirmed from an official source yet, so they are not stated as rules.
- The filing deadline for the individual return could not be confirmed because it is set each year by an annual notice.
- The number of tax treaties in force is not stated on the official page read.
- Whether the primary residence exclusion of ZAR 3,000,000 applies to a home outside South Africa could not be confirmed from an official page.
- The consolidated Authorised Dealer Manual on the Reserve Bank site is dated 2021 and carries the old ZAR 1,000,000 allowance, so the 2026 circulars are used for current limits.
- How foreign rental losses are treated could not be confirmed from an official source.
Sources
Official pages these figures come from (9)
See what this does to your own numbers
Add a property abroad next to everything else you own, and see the income and net worth that follow after tax, year by year.
Free to start. No card. Rules checked 30 October 2026.
This is education, not financial, tax, legal or immigration advice. Rules change and depend on the buyer's own facts. Advice from a licensed professional in the country concerned is what settles a particular purchase.