Notable Tax Changes
The real estate market has seen some notable changes in taxation for the 2025 financial year.
Property Transfer Tax on property and shares has risen from 5% to 8% and the Vendor will need to produce a valid Tax Clearance Certificate. Along with the Advance Income Tax (AIT) that has been introduced on remitttances exceeding US$2,000 which will impact the Purchaser unless they can produce a valid Tax Clearance Certificate we expect to see a reluctance in property investment this year.
For landlords, the rental tax rates have also increased from 4% for the bracket below K800,000 per annum to 5%. For the bracket above K800,000 per annum we have seen a massive leap from 12.5% to 16%
26 Jan 2025
Author Cathy Miller