Foreigners buying property in South Africa will face updated cross-border payment reporting requirements from 11 August 2026.

The South African Reserve Bank is introducing revised Balance of Payments codes for money entering and leaving the country.

These codes help commercial banks report international transactions to the Reserve Bank. Foreign Buyer Property Solutions said buyers must use the correct code when transferring money into South Africa for a property purchase.

The classification will depend on how the investment is structured and how the property will be used.

Mistakes Could Delay Access to Money

The code selected when funds enter South Africa could affect whether the buyer can later move the proceeds out of the country after selling the property.

Foreign Buyer Property Solutions warned that an incorrect classification could cause delays or lead to capital being frozen.

More than 800 categories and subcategories form part of the updated system. Buyers will therefore need to provide detailed information about their transactions.

The payment code must also match information submitted to the South African Revenue Service. Any differences between the banking classification and tax disclosures could raise concerns with SARS.

All cross-border transactions must be reported to the Reserve Bank, regardless of their value.

Foreign Demand for Luxury Homes Grows

The changes come as more international buyers enter South Africa’s property market.

Lightstone data shows foreign buyers account for around four out of every 10 South African home sales valued above R20 million.

Just Property CEO Paul Stevens said international buyers increasingly view local properties as places to live, work remotely and spend holidays rather than only as investments.

He said South Africa offers space, lifestyle benefits and long-term value at prices that remain competitive compared with other global destinations.

Buyers Urged to Check Codes Early

The revised framework is expected to improve reporting accuracy and help banks process qualifying payments more efficiently within the Common Monetary Area.

Foreign buyers should confirm the correct Balance of Payments classification before transferring money into South Africa.

Getting the code right from the start could prevent costly complications when the property is eventually sold and the buyer wants to transfer the proceeds abroad.