Recent reports show that currently the South African property market is booming and that buyers are showing interest from all corners of the globe. The northern suburbs of Johannesburg, many Western Cape areas, such as Cape Town, The West Coast and the Garden Route are said to be on the foreign property buyers’ radar. Expats are also returning to home soil, from European countries such as the United Kingdom, Ireland, and Germany, as well as the Middle East and the United States and buying property.
In light of this interest among both returning South Africans and foreign investors, it is imperative for buyers to navigate the associated tax obligations with care. As highlighted by international tax specialist Geo Kilian of Hobbs Sinclair, “Proactive tax planning before repatriation or property acquisition can mitigate potential challenges and optimise financial returns.” Moreover, property professionals catering to clients in this market must be armed with a comprehensive understanding of the legal obligations and compliance requirements associated with such transactions.
Returning South Africans
South Africans who financially emigrated and relinquished their SA tax residency and tax numbers on their way out will face a few hurdles when trying to purchase a property in South Africa on their return. According to Kilian, “South African financial
