▶ Foreign Owner Guide · Africa Estate Agricultural
Repatriating Farm Sale Proceeds as a Foreign Owner
What a non-resident selling a South African farm needs to know to get the proceeds out of the country.
A non-resident who bought a South African farm from abroad can generally repatriate the proceeds on sale, provided the original purchase was properly recorded and the sale is at a market-related price. The documentation that makes this possible is created at the point of purchase, not the point of sale, which is why it needs to be located and checked before the farm is listed. The South African Reserve Bank harmonised the Balance of Payments reporting codes that authorised dealers use to classify these transactions, with the updated framework effective from 11 August 2026, and Section 35A of the Income Tax Act withholds a portion of the proceeds at transfer pending the seller\'s actual Capital Gains Tax reconciliation. This guide explains the exchange-control mechanics, the August 2026 code change, the tax withholding, and the eight-step process for a non-resident seller.
▣ Key Facts at a Glance
- A non-resident who funded a South African farm purchase from abroad and had it properly recorded by an authorised dealer can generally repatriate the original investment plus reasonable, market-related capital growth on sale.
- The South African Reserve Bank harmonised its Balance of Payments reporting code framework, aligned with the IMF Balance of Payments Manual (BPM6), effective from 11 August 2026; sellers should confirm the applicable code with their authorised dealer rather than assume the original purchase-time code still applies.
- Section 35A of the Income Tax Act 58 of 1962 requires a prescribed portion of the proceeds to be withheld at transfer where the seller is a non-resident, reconciled against the actual Capital Gains Tax liability under the Eighth Schedule.
- Repatriation depends on documentation created at the point of PURCHASE (proof of inward transfer, the authorised dealer's Balance of Payments record), not only on documentation from the sale itself.
- Where a non-resident co-owns with a South African resident, only the non-resident's proven foreign-sourced portion and its share of the profit may be repatriated.
- Property practitioners handling these transactions must be PPRA-registered with a current Fidelity Fund Certificate under the Property Practitioners Act 22 of 2019.
The Four Things That Determine What You Can Take Out
Repatriation is not automatic and is not decided at the sale. It is decided by what was documented at the purchase, what changed in the reporting framework since, and what the tax withholding leaves behind.
What Exchange Control Actually Tests on Exit
Repatriation depends on how the original purchase was funded and recorded, not on the sale itself.
The Currency and Exchanges Act 9 of 1933 and the Reserve Bank Exchange Control Regulations govern what a non-resident may take out of South Africa. A non-resident who funded a farm purchase entirely from abroad and had the inbound funds properly recorded by an authorised dealer against the correct Balance of Payments reporting category can, on sale, repatriate the original investment plus reasonable, market-related capital growth. The test is applied at the point of exit, but the evidence it relies on was created at the point of entry. Funds introduced without a clean paper trail are difficult, sometimes impossible, to take back out as sale proceeds.
The August 2026 Balance of Payments Code Change
SARB harmonised its BoP reporting codes, effective 11 August 2026, aligned with the IMF Balance of Payments Manual (BPM6).
The South African Reserve Bank and the Common Monetary Area regulators issued an updated, harmonised Balance of Payments code framework spanning more than 800 categories and subcategories, with some existing codes retired and new or extended codes introduced. The updated framework took effect from 11 August 2026. A non-resident farm owner selling now, or in the near future, should have their authorised dealer confirm which code the transaction falls under so the sale proceeds are reported correctly against the new framework rather than a retired code from the original purchase. This is a coding and reporting change, not a change to the underlying entitlement to repatriate.
Section 35A Withholding Tax and Capital Gains Tax
A withholding tax applies at transfer where the seller is a non-resident, reconciled against the actual Capital Gains Tax liability.
Where the seller is a non-resident, the conveyancer is required to withhold a prescribed portion of the sale proceeds under Section 35A of the Income Tax Act 58 of 1962 and pay it over to SARS. This is not the final tax; it is reconciled against the seller's actual Capital Gains Tax liability under the Eighth Schedule for the year of disposal, with any over-withholding refunded on assessment. The withholding happens before the balance of the proceeds is available to repatriate, so it needs to be planned into the transaction timeline, not discovered at transfer.
The Documentation That Makes Repatriation Possible
The paper trail from the original purchase, kept intact, is what an authorised dealer relies on to release the proceeds.
Retain the original proof of inward transfer (the MT103 or SWIFT confirmation) from the purchase, and on sale assemble the deal receipts, the signed agreement of sale, and the conveyancer's final statement of account. These are presented to the authorised dealer to facilitate repatriation of the sale proceeds and the accrued profit, provided the bank is satisfied the price was arm's length and market-related. Where the farm was co-owned with a South African resident (a spouse, family member or business partner), only the non-resident's proven foreign-sourced portion, plus its share of the profit, may be repatriated; the resident co-owner's share is not.
The Eight-Step Process for a Non-Resident Seller
1. Locate the original inbound-transfer documentation before you list
Find the MT103 or SWIFT confirmation, the authorised dealer's Balance of Payments reporting record, and any correspondence from the purchase. If any of this is missing or the transaction was not run through an authorised dealer at the time, get advice from a South African exchange-control specialist before listing, not after an offer is on the table.
2. Confirm the applicable Balance of Payments code with an authorised dealer
The harmonised BoP code framework took effect from 11 August 2026. Ask the bank or exchange-control practitioner handling the transaction to confirm which current code applies, so the sale proceeds are reported correctly and the repatriation is not delayed by a mismatch against a retired code.
3. Engage an attorney and an authorised dealer or exchange-control specialist together
A residential conveyancer without cross-border experience is not the right professional. The attorney handles the conveyancing and the Section 35A withholding; the authorised dealer or exchange-control specialist handles the Reserve Bank documentation and the eventual outward transfer. Coordinate both from the outset.
4. Get an independent, market-related valuation before setting a price
Repatriation of the profit portion depends on the sale being at an arm's length, market-related price. A defensible, independent valuation protects the seller's position with the authorised dealer as much as it protects the negotiation. Africa Estate provides a free preliminary valuation opinion to serious sellers.
5. Engage a PPRA-registered specialist with experience selling on behalf of non-resident owners
The logistics of an owner who is not in the country for viewings, signature and communication are different from a resident seller's. A specialist who has handled non-resident exits manages the process without the owner needing to travel for every step.
6. Plan the Section 35A withholding into the transaction timeline
Confirm with the conveyancer, before the Offer to Purchase is signed, what portion of the proceeds will be withheld at transfer and paid to SARS, and how that reconciles against the actual Capital Gains Tax position for the year. Do not assume the full sale price will be available to repatriate on the day of transfer.
7. Complete FICA and any refresh of prior verification
The Financial Intelligence Centre Act 38 of 2001 requires identity, address and source-of-funds verification for every transaction. A non-resident seller's foreign documentation is acceptable but should be prepared and, where needed, translated in advance to avoid delay at the point the authorised dealer needs it.
8. Submit the repatriation request through the authorised dealer at transfer
On registration of transfer, present the retained purchase documentation, the sale agreement and the conveyancer's final statement to the authorised dealer to process the outward transfer of the proceeds and the profit. Build the realistic authorised-dealer processing time into the seller's own plans for the funds.
Frequently Asked Questions
Can a foreign owner take all the proceeds from selling a South African farm out of the country?
Generally yes, where the original purchase was funded from abroad and properly recorded by an authorised dealer at the time, and the sale is at an arm's length, market-related price. The non-resident can repatriate the original investment plus the accrued capital growth. Where the documentation from the original purchase is incomplete, repatriation can be delayed or restricted, so it needs to be checked well before the farm is listed.
What changed with the Reserve Bank's Balance of Payments codes in August 2026?
The South African Reserve Bank and the Common Monetary Area regulators harmonised the Balance of Payments reporting code framework that authorised dealers use to classify cross-border transactions, aligning it with the IMF's Balance of Payments Manual (BPM6). The updated framework, spanning more than 800 categories and subcategories with some codes retired and new or extended codes added, took effect from 11 August 2026. It changes how the transaction is coded and reported, not the underlying right to repatriate; a seller's authorised dealer should confirm the correct current code for the transaction.
Does the August 2026 change affect a sale I am doing right now?
It can affect the reporting mechanics even where the farm was bought years before the change. Ask the authorised dealer handling the sale to confirm which code now applies, rather than assuming the code used at the original purchase still applies unchanged.
What is Section 35A withholding tax?
Section 35A of the Income Tax Act 58 of 1962 requires the conveyancer to withhold a prescribed portion of the sale price where the seller is a non-resident, and pay it over to SARS. It is not a final tax: it is reconciled against the seller's actual Capital Gains Tax liability under the Eighth Schedule for the year of disposal, and any amount withheld in excess of the real liability is refunded on assessment. Engage a tax practitioner with cross-border experience to plan this into the transaction.
Do I need Reserve Bank approval before I sell?
Non-resident property transactions are generally administered through an authorised dealer rather than requiring prior individual Reserve Bank approval, provided the transaction is conducted at arm's length and at a fair, market-related price. Confirm the current position for the specific transaction with an authorised dealer or exchange-control specialist, since exchange-control policy has moved in recent years and should always be checked at the time of the transaction rather than assumed from an earlier deal.
What if I co-own the farm with a South African resident?
Only the non-resident co-owner's proven foreign-sourced portion of the investment, plus its share of the profit, can be repatriated. The resident co-owner's share of the proceeds is not subject to the same exchange-control repatriation mechanism and stays within the ordinary South African financial system. Get advice on how the ownership split was structured and documented before assuming an even split will repatriate evenly.
How is this different from a South African resident selling a farm?
A resident seller faces the same Capital Gains Tax and transfer process but has no exchange-control restriction on what happens to the proceeds afterwards, and no Section 35A withholding. The non-resident seller's additional layer is entirely about proving the funds' origin and getting the authorised dealer's sign-off to move the money back out of the country.
Who handles non-resident farm sales at Africa Estate?
Louise Fourie (Founder and Principal, PPRA FFC Reg. No. 0006393, agricultural property specialist since 1996) leads transactions involving non-resident owners, coordinating with the seller's own attorney and exchange-control specialist. Africa Estate does not provide exchange-control, tax or legal advice directly; the agency's role is the sale process, the valuation and the introduction to the right professionals.
Related Reading
- Can Foreigners Buy Farms in South Africa?. The entry-side guide this page continues.
- How to Sell a Farm in South Africa. The general seller process.
- Capital Gains Tax When Selling a Farm. The CGT mechanics that Section 35A withholding reconciles against.
- Farm Valuation in South Africa. The market-related valuation that repatriation depends on.
Sources & Regulatory References
All statutory references below are current South African legislation and regulation as at the page review date. The Balance of Payments code detail is stated at the level corroborated consistently across the South African Reserve Bank's own published circulars and independent professional commentary; a seller should always confirm the specific code and current exchange-control position for their transaction with an authorised dealer, since this framework is administrative and can be refined further.
- Currency and Exchanges Act 9 of 1933 and the Exchange Control Regulations. Governs exchange control, administered by the South African Reserve Bank through authorised dealers. See the SARB Financial Surveillance FAQ.
- SARB Exchange Control Circulars 1/2026 and 3/2026, and the Currency and Exchanges Manual for Authorised Dealers (updated 2026-05-15). The harmonised Balance of Payments reporting code framework, aligned with the IMF Balance of Payments Manual (BPM6), effective 11 August 2026.
- Income Tax Act 58 of 1962, Section 35A and the Eighth Schedule. Non-resident withholding tax on disposal and Capital Gains Tax. Administered by the South African Revenue Service (SARS).
- Financial Intelligence Centre Act 38 of 2001. Identity, address and source-of-funds verification. Administered by the Financial Intelligence Centre.
- Property Practitioners Act 22 of 2019. Governs property practitioners. Administered by the Property Practitioners Regulatory Authority (PPRA).
- Deeds Registries Act 47 of 1937. Registration of transfer at the Deeds Office.
Disclaimer
This guide is general information, not legal, tax, exchange-control or financial advice. Exchange-control policy, Reserve Bank reporting codes and tax rates are as at the review date of this page and can change. Consult a qualified attorney, tax practitioner and authorised dealer or exchange-control specialist on your own circumstances before signing any mandate or agreement, or before relying on any repatriation being possible. Africa Estate accepts no liability for decisions taken solely on this information.
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