17/11/2025
When South African entities, such as companies or trusts, purchase property, the funding structure often involves more than just a straightforward local transaction. In many cases, the capital required to complete the purchase comes from abroad, whether from a South African living offshore or from an international investor.
This is where the concept of a foreign loan becomes relevant.
Foreign loans can be a valuable source of finance for South African entities and property investors. However, it's essential to navigate the intricacies of exchange control regulations and understand the risks and benefits involved.