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Everything you need to know before buying real estate is included in our Cameroon Property Pack
Property taxes and hidden costs in Cameroon can significantly impact your investment returns if you're unprepared. The country imposes a 10% transfer tax on buyers, annual property taxes of 0.1% on urban properties, and various registration fees that many investors overlook.
Understanding these costs upfront helps you budget accurately and avoid unpleasant surprises during your property purchase. From notary fees that can reach 10% of the purchase price to capital gains taxes of up to 10% when selling, these expenses can quickly add up and affect your overall investment strategy.
If you want to go deeper, you can check our pack of documents related to the real estate market in Cameroon, based on reliable facts and data, not opinions or rumors.
Property buyers in Cameroon face substantial upfront costs including a 10% transfer tax, 10% notary fees, and 5-15% stamp duty, all typically paid by the buyer.
Annual property taxes of 0.1% apply to urban properties, while rental income is taxed at 15% for individuals and capital gains tax ranges from 5-10% depending on payment method.
| Tax/Fee Type | Rate/Amount | Who Pays |
|---|---|---|
| Transfer Tax | 10% of property value | Buyer |
| Notary Fees | ~10% of property value | Buyer |
| Stamp Duty | 5-15% of property value | Buyer |
| Annual Property Tax | 0.1% of assessed value | Owner |
| Registration Fee (Urban) | CFA 5 per m² | Buyer |
| Registration Fee (Rural) | CFA 1 per m² | Buyer |
| Rental Income Tax | 15% (individuals), 33% (companies) | Owner |
| Capital Gains Tax | 10% (5% via e-banking) | Seller |
What are the main property taxes you need to pay when buying property in Cameroon?
The three primary taxes when purchasing property in Cameroon are transfer tax, notary fees, and stamp duty.
Transfer tax stands at 10% of the property's transaction value and is mandatory for all real estate purchases. This substantial cost is collected by the notary and must be paid before property registration can be completed.
Notary fees typically amount to 10% of the purchase price and cover the legal authentication of your property contract. These fees are set by law and cannot be negotiated down, making them a significant expense in your budget.
Stamp duty ranges from 5% to 15% of the property value and serves as an additional registration cost. The exact percentage depends on the specific property type and location within Cameroon's tax framework.
These three taxes combined can reach 25-35% of your property's purchase price, making upfront costs substantial for any real estate transaction in Cameroon.
How much is the transfer tax for purchasing real estate, and who is responsible for paying it?
The transfer tax is exactly 10% of the property's transaction value and is always paid by the buyer.
This tax applies universally to all immovable property transactions in Cameroon, regardless of whether you're buying residential, commercial, or undeveloped land. The 10% rate is fixed by national law and doesn't vary between regions or property types.
The notary handling your transaction collects this tax on behalf of the government and ensures payment before proceeding with property registration. You cannot complete the ownership transfer without proof of transfer tax payment, making it an unavoidable cost.
For a property worth CFA 50 million, you'll pay exactly CFA 5 million in transfer tax. This amount must be available in addition to your property purchase price, not deducted from it.
As of September 2025, no exemptions exist for this tax, whether you're a Cameroonian citizen or foreign national.
Are there any other local or regional taxes that apply to property ownership in Cameroon?
Registration fees vary significantly between urban and rural areas, with urban properties facing higher costs.
Urban areas charge CFA 5 per square meter for land registration with a minimum fee of CFA 5,000. Rural areas have a lower rate of CFA 1 per square meter with a minimum of CFA 3,000. These fees apply when formally registering your land certificate through MINDCAF.
Local authorities may impose supplementary fees for specific developments or communal services, particularly in urban areas. These additional charges are typically disclosed during the land registration process or when seeking municipal approval for construction projects.
Some councils previously imposed a 10% surcharge on the state property tax, but this was abolished by the 2013 finance law. Property owners now only pay the 0.1% annual state tax without additional local surcharges.
Administrative processing fees for land measurement, documentation, and surveyor services add small but necessary costs to your property transaction.
How does the property tax system work for rental properties in Cameroon?
Rental properties face both annual property tax and rental income tax obligations that significantly impact your investment returns.
Annual property tax of 0.1% applies to the assessed value of your rental property if it's located in an urban area with infrastructure like roads and utilities. You must declare the property value yourself, and failure to do so results in official government estimation.
Rental income tax stands at 15% of gross rental income for individual property owners. If you operate through a company structure, the corporate tax rate of 33% applies instead, making individual ownership more tax-efficient for rental properties.
The combination means a rental property generating CFA 2 million annually in rent will face CFA 300,000 in rental income tax plus the 0.1% annual property tax on the property's assessed value.
It's something we develop in our Cameroon property pack.
What is the annual land tax rate, and how is it calculated?
| Property Location | Tax Rate | Calculation Basis |
|---|---|---|
| Urban with Infrastructure | 0.1% annually | Owner-declared value |
| Rural Agricultural Land | Exempt | N/A |
| Rural Grazing Land | Exempt | N/A |
| State-owned Property | Exempt | N/A |
| Religious Properties | Exempt | N/A |
| Educational Institutions | Exempt | N/A |
| Charitable Organizations | Exempt | N/A |
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Do you need to pay taxes if you sell a property, and what are the rates for capital gains tax?
Capital gains tax applies to all property sales in Cameroon at rates of either 10% or 5% depending on your payment method.
The standard capital gains tax rate is 10% of the net gain, calculated as the difference between your sale price and original acquisition cost plus documented property improvements. This rate applies when using traditional payment methods.
As of 2024, a reduced rate of 5% applies if you conduct the sale transaction via electronic banking systems. This electronic payment incentive effectively halves your capital gains tax burden.
The notary handling your property sale automatically withholds this tax at the time of transaction registration to ensure government compliance before transferring the land registry. You cannot avoid this tax through timing or structuring strategies.
For a property purchased at CFA 30 million and sold for CFA 40 million, your capital gains tax would be CFA 1 million (10% rate) or CFA 500,000 (5% electronic rate) on the CFA 10 million gain.
Are there any exemptions or deductions available to reduce property tax burdens?
Several property categories receive complete exemptions from annual property taxes in Cameroon.
Agricultural properties used exclusively for farming, grazing, or fisheries are fully exempt from the 0.1% annual property tax. This exemption applies regardless of property size or location, making agricultural land attractive for investors seeking to minimize ongoing tax obligations.
State-owned properties, recognized religious institutions, charitable organizations, and educational or health institutions receive exemptions when used for non-commercial purposes. However, these exemptions are lost if the properties generate commercial income.
Some urban councils offer limited waivers or discounts for property owners who pay their local taxes promptly. These incentives vary by municipality and are typically announced annually by local authorities.
No deductions exist for property improvements, mortgage interest, or maintenance costs that could reduce your tax burden on rental income or capital gains.
How do taxes vary between urban and rural areas in Cameroon?
Urban properties face significantly higher ongoing tax obligations compared to rural properties in Cameroon.
Annual property tax of 0.1% applies primarily to urban areas with established infrastructure like roads, utilities, and municipal services. Rural properties are typically exempt unless they fall within zones officially classified as urbanized by local councils.
Land registration fees demonstrate the urban-rural cost difference clearly: urban areas charge CFA 5 per square meter compared to CFA 1 per square meter in rural areas. For a 1,000 square meter plot, urban registration costs CFA 5,000 while rural costs only CFA 1,000.
Urban properties benefit from better infrastructure and municipal services but pay higher taxes to support these amenities. Rural properties enjoy lower tax burdens but may lack reliable utilities, roads, or government services.
Transfer tax, notary fees, and stamp duty rates remain identical between urban and rural areas, ensuring transaction costs don't vary by location.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Cameroon versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the hidden fees associated with property transactions that buyers often overlook?
Due diligence and inspection costs represent the most commonly overlooked expenses in Cameroon property transactions.
Pre-purchase property inspections and legal verification services are strongly recommended but not mandatory, leading many buyers to skip these crucial steps. Professional inspections typically cost 1-2% of the property value but can save you from expensive problems later.
Processing and surveyor fees for land measurement and documentation often catch buyers by surprise. These administrative costs are separate from registration fees and vary based on property size and complexity.
Utility transfer charges apply when changing electricity, water, and internet accounts to your name after purchase. While individually small, these administrative costs can total several hundred thousand CFA francs for multiple utilities.
Late payment penalties become expensive if you miss deadlines for tax payments or property registration. The government imposes significant fines for delayed compliance, and under-declaring property values triggers additional penalties during audits.
Are there any mandatory maintenance or infrastructure fees imposed by local authorities for property owners?
No fixed annual infrastructure charges are imposed by national law, but local authorities may levy supplementary fees for specific developments.
Urban developments and gated communities sometimes face special assessments for road maintenance, security services, or communal facility upkeep. These fees are typically disclosed during the land registration process or when seeking municipal construction approvals.
Local councils in major cities like Douala and Yaoundé occasionally impose one-time levies for infrastructure improvements affecting your neighborhood. Property owners receive advance notice of these assessments, which can range from hundreds of thousands to millions of CFA francs.
Waste collection and street lighting services in some urban areas require separate payments to municipal authorities. These services are not automatically included in your property tax payments and must be arranged directly with local providers.
Property owners in rural areas generally face no mandatory infrastructure fees due to limited municipal services and infrastructure development.
How do taxes and costs differ for foreign nationals compared to Cameroonian citizens when buying property?
Tax rates and fee structures remain identical for foreign nationals and Cameroonian citizens in all property transactions.
Transfer tax of 10%, notary fees of 10%, and stamp duty of 5-15% apply equally regardless of your nationality. The government does not impose surcharges or offer discounts based on citizenship status.
Annual property tax of 0.1%, rental income tax of 15%, and capital gains tax of 5-10% also maintain the same rates for all property owners. No preferential treatment exists for either foreign investors or local citizens.
Administrative processes may prove more complex for foreign nationals, particularly regarding land ownership permissions and documentation requirements. However, these procedural differences don't affect the actual tax amounts you'll pay.
Some administrative processing may take longer for foreigners due to additional verification requirements, but this extends timelines rather than increasing costs.
It's something we develop in our Cameroon property pack.
What are the legal requirements and costs for registering property in Cameroon, and how long does the process take?
Property registration requires a notarial deed, payment of all applicable taxes, and registration at the Land Registry managed by MINDCAF.
You must secure complete documentation including proof of transfer tax payment, stamp duty payment, and proper land surveying before beginning the registration process. Missing any required documents delays the entire procedure significantly.
The registration timeline typically spans several weeks to several months depending on due diligence requirements, documentation completeness, and current workload at land agencies. Urban properties in major cities often process faster due to better administrative infrastructure.
Total registration costs include the transfer tax (10%), notary fees (10%), stamp duty (5-15%), and land registration fees (CFA 5/m² urban, CFA 1/m² rural). These mandatory costs cannot be reduced through negotiation or alternative procedures.
It's something we develop in our Cameroon property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Cameroon's property tax system helps you budget accurately for real estate investments and avoid unexpected costs that could impact your returns.
The substantial upfront costs of 25-35% of property value, combined with ongoing annual taxes and potential capital gains obligations, require careful financial planning for successful property investment in Cameroon.
Sources
- PwC Tax Summaries - Republic of Cameroon
- Lincoln Institute - Property Taxation in Africa
- KPMG - Doing Business in Cameroon
- KPMG Africa Fiscal Guide - Cameroon
- Kinsmen Advocates - Buying a House in Cameroon
- Djoukang and Partners - Land Title Procedure
- Primetime Law Office - Property Tax Payment
- Boyo Real Estate - Property Taxes and Fees
- Business in Cameroon - Property Tax Collection
- Global Property Guide - Cameroon Rental Income Tax