Property Costs and Taxes in Rwanda
When you buy
| Cost | Amount |
|---|---|
| Land transfer and new title | Free |
| Public notary | RWF 500 per notarised page |
| Private notary | RWF 6,500 per copy |
| VAT on a home or a plot | None: the sale of land and of residential buildings is exempt |
Lawyers, valuers and agents charge on top of these. Their fees are agreed with them and are not set by law.
Every year: property and land tax
| Property | Yearly tax |
|---|---|
| Residential building | 0.5% of market value |
| Residential building of three floors | 0.25% |
| Residential building of more than three floors | 0.1% |
| Commercial building | 0.3% |
| Industrial building, or a small or medium business | 0.1% |
| Land | RWF 0 to 80 per m², set by the district council |
The owner’s own home is exempt from the tax on the building, but its plot still pays land tax. The plot under a condominium is exempt. Values are fixed for five years at a time. Declare and pay by 31 December each year. A late or wrong declaration costs 40% of the tax, plus interest of 1.5% a month.
In Kigali the City Council raised land tax rates in February 2025, and many plots now pay the top rate of RWF 80 per m².
If you rent it out
An individual who lets property pays rental income tax to the district. Half of the rent is deducted for costs, and so is the interest on a bank loan for the property. The rest is taxed in bands. Declare by 31 January for the previous year.
| Taxable rental income a year | Rate |
|---|---|
| Up to RWF 180,000 | 0% |
| RWF 180,001 to 1,000,000 | 20% |
| Above RWF 1,000,000 | 30% |
RRA’s own example: rent of RWF 4.8 million a year and RWF 500,000 of loan interest leave RWF 1.9 million taxable, and the tax is RWF 434,000. Residential leases of more than 90 days are exempt from VAT. A company pays corporate income tax on rent as part of its business profit.
When you sell
The tax on sale of immovable property is charged on the sale price after the first RWF 5,000,000, which is tax-free. The rate is 2% for property in commercial use sold by a seller registered for income tax, and 2.5% for a seller who is not registered. It is declared in RRA’s local government tax system. A company that sells business property includes the gain in its taxable profit.
Frequently Asked Questions
What is the property tax on a home in Rwanda?
0.5% a year on a residential building, and 0.3% on a commercial building.
How much is land tax?
From RWF 0 to 80 per m² a year.
Is there a tax when selling property?
Yes. Tax on sale is 2%, or 2.5% for a seller not registered for income tax.
Sources
- National Land Authority: One Step One Day transfer
- Rwanda Revenue Authority: Immovable property tax
- Rwanda Revenue Authority: Tax on sale of immovable property
- Rwanda Revenue Authority: Rental income tax
- Rwanda Revenue Authority: Tax handbook 2025 (PDF)
- Rwanda Revenue Authority: Local government taxes, penalties for late declaration
- The New Times: City of Kigali explains newly adjusted land tax
- Rwanda Revenue Authority: Rental income tax guide (PDF)
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.
