From 11 August 2026, South Africa’s banking system will implement updated Balance of Payments (BoP) reporting codes issued by the South African Reserve Bank (SARB). While this has attracted attention in the property industry, it is important to understand what is actually changing.
The new requirements do not introduce new restrictions on foreigners buying property in South Africa, nor do they change the legal rights of non-residents to own property. Instead, they affect the way authorised banks record and report foreign funds entering the country for property purchases.
Why are these changes important?
South Africa remains an exchange control jurisdiction. Whenever money enters or leaves the country, banks are required to report those transactions to the South African Reserve Bank using prescribed Balance of Payments codes.
From August, more detailed reporting will apply to foreign funds used to purchase property. The objective is to create a clearer record of the original investment.
This is particularly important when the property is eventually sold. A properly recorded inward investment makes it significantly easier for the seller to demonstrate that the capital originally came from offshore, allowing the proceeds of the sale to be repatriated in accordance with South Africa’s exchange control regulations.
What does this mean for foreign buyers?
In practical terms, very little changes for genuine purchasers.
Foreign buyers should continue to:
- Transfer purchase funds through an authorised South African bank.
- Ensure the purpose of the transfer is accurately recorded.
- Retain proof of the inward transfer and supporting documentation.
- Work with experienced conveyancers and financial institutions that understand the exchange control requirements.
Taking these steps at the beginning of the transaction can prevent unnecessary delays years later when the property is sold.
Good news for the South African property market
The updated reporting requirements should not discourage foreign investment. They are primarily administrative and are designed to improve regulatory reporting while providing greater certainty when funds are repatriated.
South Africa remains one of the more accessible property markets for foreign investors, with non-residents generally still able to purchase residential property, subject to the existing exchange control, financing and FICA requirements.
Our advice
If you are acting for an overseas purchaser, it is more important than ever that the source of funds is correctly documented from the outset. A well-managed conveyancing process today can save considerable time and expense when the property is eventually sold.
At ESI Attorneys, we guide both local and international clients through every stage of the conveyancing process, ensuring that regulatory requirements are met and that transactions proceed as smoothly as possible.