For many South Africans living abroad, owning a property back home remains an important part of their financial journey. Whether it’s a family home, an investment property or a holiday residence, South African property for non-residents can offer valuable opportunities. But when it comes to buying property in South Africa from overseas or selling a property and moving the proceeds abroad, the process is rarely as simple as transferring money from one bank account to another.
Between SARS compliance requirements, exchange control regulations, tax considerations and international money transfers from South Africa, non-residents often discover that there are several steps involved before funds can move smoothly across borders.
The good news? With the right planning and support, navigating a cross-border property transaction doesn’t need to be complicated.
Top three takeaways for non-residents buying or selling property in South Africa
- Non-residents can buy and own property in South Africa, but transferring money into the country requires careful planning and supporting documentation.
- Selling property in South Africa as a non-resident involves tax and compliance considerations, including capital gains tax on property in South Africa and SARS requirements before funds can be transferred offshore and supporting documentation.
- Using a specialist international transfer partner can simplify the process, helping you manage exchange control, documentation and offshore transfers more efficiently.
Read more: When does it make sense to keep a property in South Africa while living overseas?
Can non-residents buy property in South Africa?
South Africa generally allows foreign nationals and South African expats living overseas to buy property locally. There are no blanket restrictions preventing non-residents from owning residential property. However, the practical side of purchasing property from abroad can be more complicated.
A buyer living overseas needs to consider:
- How the purchase funds will be transferred into South Africa
- Whether the source of funds documentation is in order
- South African Reserve Bank (SARB) exchange control requirements
- Tax registration requirements
- Compliance checks before funds can move
For South Africans living overseas, particularly those who have completed tax emigration from South Africa or changed their South African tax residency, understanding these requirements upfront can prevent delays later.
A property transaction often involves several parties, including estate agents, conveyancers, attorneys and financial institutions. When international transfers are involved, every party needs accurate documentation and clear timelines.
Read more: Important things to know about buying property in South Africa as a non-resident.
Selling property in South Africa as a non-resident: what you need to know
Selling a South African property while living overseas can present a different set of challenges. Many expats assume that once the property is sold, the proceeds can simply be transferred into an overseas bank account. In reality, repatriating property sale proceeds from South Africa requires compliance with tax and exchange control rules.
One of the key considerations is tax.
Non-residents selling South African property may be liable for capital gains tax on property in South Africa. In addition, a withholding tax may apply to property sales involving non-resident sellers. This amount is withheld upfront and used as an advance payment towards the seller’s potential tax liability. If the final tax amount is lower than the amount withheld, the seller can apply to SARS for a reduction.
This is why getting the right advice before the finalisation of the property transaction is important. A delay in addressing tax requirements can hold up the transfer process and delay access to your funds.
Read more: Selling your property in South Africa – the guide to expat Capital Gains Tax implications.
Moving your property sale proceeds overseas from South Africa
Once a property sale is complete, many non-residents want to move their money offshore quickly and efficiently. However, transferring funds internationally from South Africa requires more than just an instruction to your bank.
Depending on your circumstances, you may need:
- A valid SARS Tax Compliance Status
- An Approval for International Transfer (AIT) PIN
- Supporting documentation proving the source of funds
- Proof of the property transaction
- Exchange control approval where applicable
These requirements are designed to ensure that international transfers comply with South African regulations, but they can also create frustration if you are unfamiliar with the process.
This is particularly true for expats who have been living abroad for years and are managing their South African assets from another country.
Read more: Moving abroad and selling your home? New SARS rule could save you thousands in tax.
A simpler way to manage international property transactions
The easiest way to navigate a South African property sale as a non-resident is to prepare early and work with professionals who understand the process from start to finish.
The right support can help with:
- Understanding your South African tax residency position
- Managing SARS requirements
- Applying for relevant tax approvals
- Coordinating international money transfers
- Reducing unnecessary costs and delays
For South African expats, this is especially valuable because property transactions often form part of a wider offshore financial plan. Selling a property may coincide with other decisions, such as moving savings overseas, withdrawing a retirement annuity after emigration, or restructuring South African assets. Having a clear plan helps ensure that your money reaches you in the most efficient way possible.
FinGlobal: cross-border financial specialists
Buying or selling a property in South Africa while living abroad can involve unexpected tax, compliance and transfer requirements. Planning ahead can help you avoid delays and ensure your funds move smoothly. FinGlobal helps South Africans abroad simplify complex cross-border transactions, from SARS tax clearance and tax refunds to secure international money transfers from South Africa.
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