Commercial Property in Rwanda
Holding commercial land
Under the Prime Minister’s Order of 2022 on land allocation, residential, commercial and industrial land is leased for up to 49 years, and agricultural and forestry land for up to 99 years. The lease can be renewed. A foreign company or individual can hold a commercial lease and transfer it through the National Land Authority, in a transfer that is free and done in a day.
Building and change of use
Every building permit in Kigali and the secondary cities goes through BPMIS, the Building Permit Management Information System. It covers new buildings, extensions, refurbishment, demolition, occupancy permits and change of use, so turning a house into offices also needs a permit. RDB lists a fee of RWF 60,000 for a construction permit.
In a building with several owners, each office or shop can be a separate condominium unit with its own title, under the condominium law of 2010.
Taxes
| Tax | Rate |
|---|---|
| Immovable property tax on a commercial building | 0.3% of market value a year |
| Industrial building, or a small or medium business | 0.1% a year |
| Land tax | RWF 0 to 80 per m² a year |
| VAT on rent | 18%; only residential leases of over 90 days are exempt |
| Tax on sale | 2% for a seller registered for income tax, 2.5% if not, on the price above RWF 5 million |
Kigali Innovation City
Kigali Innovation City is a 61.2 ha development in Kigali, planned around universities, technology firms, offices, homes and shops. The Prime Minister broke ground on 10 September 2024. Africa50 co-sponsors it with the Rwanda Development Board, in a project of about USD 300 million. Its first building is a Grade A office and retail block, and Carnegie Mellon University Africa, the African Leadership University and the University of Rwanda are on the site.
Frequently Asked Questions
How long is a lease on commercial land?
Up to 49 years, renewable.
What taxes apply to commercial property?
Property tax of 0.3% a year, 18% VAT on commercial rent, and tax on sale of 2% or 2.5%.
What is Kigali Innovation City?
A 61.2 ha development in Kigali planned around universities, technology firms, offices, homes and shops. Ground was broken on 10 September 2024.
Sources
- RwandaLII: Prime Minister’s Order N° 008/03 of 03/07/2022 determining modalities for land allocation
- Rwanda Revenue Authority: Immovable property tax
- Rwanda Revenue Authority: Tax handbook 2025 (PDF)
- National Land Authority: One Step One Day transfer
- Ministry of Infrastructure: Building Permit Management Information System (BPMIS)
- Rwanda Development Board: Construction permit procedure
- Rwanda Development Board: Kigali Innovation City, request for proposals for student housing (PDF)
- RwandaLII: Law N° 15/2010 creating and organizing condominiums and setting up procedures for their registration
- Rwanda Revenue Authority: Tax on sale of immovable property
- Africa50: Kigali Innovation City
- Office of the Prime Minister: Groundbreaking ceremony of Kigali Innovation City
Figures checked 9 November 2026. Prepared by InvestRwanda.com for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
