Tax transparency is coming to real estate
Financial Accounts: tax transparency is already the norm
For the past 15 years, global tax transparency has been a central theme of the OECD’s work, and it has been successful. Bank secrecy has effectively ended, and the automatic exchange of information on financial accounts (via the Common Reporting Standard) has become the norm. However, one major asset class has remained a blind spot for tax authorities: cross-border real estate.
In October 2025, the OECD released a new Framework for the Automatic Exchange of Readily Available Information on Immovable Property for Tax Purposes. This report outlines a new system designed to close the gap on real estate tax evasion.
The problem with real estate: a lack of transparency
While tax authorities now routinely see foreign bank account details, they often lack visibility into properties their residents own abroad. The OECD’s position is that cross-border real estate holdings are increasing and are frequently used to shelter undeclared assets. Without this data, it is difficult for jurisdictions to enforce capital gains, wealth, and inheritance taxes, or to verify if the funds used to buy the property were declared in the first place.
The OECD’s Solution: The IPI MCAA
The core of the new framework is the Multilateral Competent Authority Agreement on the Exchange of Readily Available Information on Immovable Property (IPI MCAA).
Unlike the Common Reporting Standard, which requires banks to actively collect data, this new framework operates on an "as is" basis. Participating countries agree to exchange information that is already "Readily Available"—meaning data that is electronically captured, searchable, and sortable in their existing tax or land registry databases. This approach avoids the need for complex new laws requiring notaries or real estate agents to collect new data, allowing for faster implementation.
How It Works: Two Modules
Recognizing that tax systems differ (e.g., some countries don't tax foreign property or wealth), the framework offers flexibility through two distinct modules. Countries can opt into one or both:
Ownership Visibility (Holdings & Acquisitions):
The "Stock Take": A one-off exchange of information on all existing properties held by foreign residents.
Ongoing Monitoring: Annual automatic exchanges regarding new property acquisitions.
Goal: Helps authorities identify wealth stored in foreign real estate.
Income Visibility (Disposals & Rent):
Transactions: Annual exchanges covering the sale (disposal) of properties.
Income: Annual exchanges covering recurrent income (e.g., rental income).
Goal: Helps authorities tax capital gains and rental income effectively.
What Data is Exchanged?
For the information to be useful, it must meet a Minimum Data Set standard. This includes:
Identity: Name, address, and Tax ID (TIN) of the legal owner (and Beneficial Owner where available).
Property Details: Address, value, or price of the property.
Financial information: Purchase price, capital gains, or rental income amounts depending on the module.
Who’s onboard and when will the IPI MCAA have teeth?
On 4 December 26 countries issued the following statement:
“...The broad adoption of the IPI MCAA is an important step towards delivering tax transparency on non-financial assets. It will strengthen our ability to monitor and enforce tax compliance, and to combat tax evasion, which undermines public revenues and unfairly shifts the tax burden onto compliant taxpayers.
We aim to join the IPI MCAA by 2029 or 2030, subject to domestic procedures as applicable.
We also encourage other jurisdictions to join this initiative in the collective effort to promote transparency, fairness and efficiency in global taxation…”
Those countries are:
Belgium, Brazil, Chile, Costa Rica, Finland, France, Germany, Greece, Iceland, Indonesia, Ireland, Italy, Korea, Lithuania, Malta, New Zealand, Norway, Peru, Portugal, Romania, Slovenia, South Africa, Spain, Sweden and the United Kingdom (including Gibraltar).
Takeaway
By leveraging data that governments already possess—such as digital land registries—the OECD aims to shine a light on the "last mile" of hidden offshore wealth without imposing massive new compliance burdens on the private sector. While voluntary, at least in theory (but perhaps not in practice once enough countries have joined in) the agreement allows interested jurisdictions to finally gain visibility over the brick-and-mortar assets of their taxpayers abroad.