Taxes on residential houses in Rwanda have received a downward review, and the new charges are 0.25% for houses with three floors and 0.1% for houses above three floors.
To boost the economy and make life easier for property owners in Rwanda, the government has announced a significant tax decrease on residential houses.
Taxes On Residential Houses In Rwanda: Announcement by Minister
Uzziel Ndagijimana, the Minister of Finance and Economic Planning, announced on Sunday, December 17, that the 0.5% tax that was previously charged on houses with three floors has been cut down to 0.25%, and houses above three floors will now pay 0.1% only.
The review is part of a broad tax reform strategy meant to reduce tax rates, widen the tax base, and aid compliance while checking evasion.
The government estimates a rise in tax revenues equal to 1% of GDP by the fiscal year 2025/26.
As part of the review, the charge imposed on a second residential house has been cut to 0.5% of the merged market value of the property and land from the previous rate of 0.1%.
Owners of commercial buildings will also gain from reduced taxes, with the rate reduced from the previous 0.5% to 0.3% of the property’s market value on both the building and the land.
To attract investors and boost the economy, the Rwandan government has also reduced the corporate income tax statutory rate from 30% to 28%, to eventually reach 20%.
Also, the levy charged on the sale of immobile property will now be 2% of the property value for registered taxpayers and 2.5% for non-registered taxpayers.
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