Notable Tax Changes
Category Trends
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%
Author: Cathy Miller