Rental Yields in Rwanda
Gross and net yield
Gross yield is the year’s rent divided by the price you paid. Net yield takes off what the property costs you to hold: tax, upkeep, insurance, management, service charges and the months it stands empty. In Rwanda the taxes are set by law, so you can calculate them exactly; the other costs you have to estimate.
Figures checked November 2026. A guide only, not tax, legal or financial advice.
Sources for the calculator
The taxes on a let home
| Tax | How it works |
|---|---|
| Rental income tax | 50% of the rent is deducted, and so is bank loan interest; the rest pays 0% up to RWF 180,000, 20% to RWF 1,000,000 and 30% above |
| Immovable property tax | 0.5% of the building’s market value a year, as the home is not the owner’s own residence |
| Land tax | RWF 0 to 80 per m² of the plot a year, set by the district |
| VAT | None on residential leases of more than 90 days; 18% on commercial rent |
A company that owns the property pays corporate income tax on its profit instead of rental income tax.
RRA’s worked example
| Step | RWF a year |
|---|---|
| Rent received | 4,800,000 |
| Less 50% for costs | −2,400,000 |
| Less bank loan interest | −500,000 |
| Taxable rental income | 1,900,000 |
| Tax: 0% on the first 180,000 | 0 |
| Tax: 20% on 180,001 to 1,000,000 | 164,000 |
| Tax: 30% on the remaining 900,000 | 270,000 |
| Rental income tax | 434,000 |
That is about 9% of the rent. Property tax and land tax come on top, and so do upkeep, management and empty months.
Checking the rent
- Ask for the current lease and the rent actually paid, not the asking rent.
- Ask for the seller’s rental income tax declarations to RRA.
- Check the property tax and land tax are paid up to date.
- Allow for inflation: housing, water and electricity prices rose 20.4% in the year to August 2026.
Frequently Asked Questions
Are there official rental yield figures for Rwanda?
No. The page shows how to calculate gross and net yield with Rwanda’s own costs and taxes.
How is rental income taxed?
Individuals pay 0% to 30% after a 50% deduction for costs.
Is there VAT on rent?
Commercial rent bears 18% VAT. Homes let for over 90 days are exempt.
Sources
- Rwanda Revenue Authority: Rental income tax
- Rwanda Revenue Authority: Immovable property tax
- Rwanda Revenue Authority: Tax handbook 2025 (PDF)
- Rwanda Revenue Authority: Rental income tax guide (PDF)
- National Institute of Statistics of Rwanda: Consumer price index, August 2026 (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.
