National Treasury and SARS invite comments on draft requirements for unlisted companies to qualify as REITs.

South Africa’s National Treasury and the Revenue Service (SARS), on 11 December 2025, published a draft notice outlining requirements for unlisted companies to qualify as real estate investment trusts (REITs).

The rules follow the 2024 Taxation Law Amendment Act, which expanded the REIT definition to include unlisted South African companies that meet specific criteria set by the Minister of Finance.

Under the draft notice, qualifying REITs must be wholly-owned subsidiaries, hold at least 80% of their assets in immovable property, earn at least 75% of revenue from rentals, and have gross assets of at least R300 million.

The consultation is set to conclude on 31 January 2026.