Authored by the expert who managed and guided the team behind the Senegal Property Pack
Yes, the analysis of Dakar's property market is included in our pack
Property taxes and fees in Dakar can significantly impact your investment returns and ongoing ownership costs. Understanding Senegal's tax structure is crucial for making informed real estate decisions in the capital city.
If you want to go deeper, you can check our pack of documents related to the real estate market in Senegal, based on reliable facts and data, not opinions or rumors.
Property owners in Dakar pay 5% annual tax on assessed rental value, with a 1.5 million FCFA deduction for main residences. Purchase costs total 16.75-20.5% of property value, including 6% registration duties and 10% stamp duty.
Rental income is taxed at 25% after a 40% expense deduction, while recurring ownership costs typically range from 400,000-700,000 FCFA annually for a two-bedroom apartment.
| Tax/Fee Type | Rate | Base/Calculation |
|---|---|---|
| Annual Property Tax | 5% | Assessed rental value (minus 1.5M FCFA for main residence) |
| Garbage Collection Tax | 3.6% | Annual rental value (no deduction) |
| Registration Duty | 6% | Property purchase price |
| Stamp Duty | 10% | Property purchase price |
| Rental Income Tax | 25% | After 40% expense deduction |
| VAT (New Builds) | 18% | Full sale price (non-primary residence) |
| Mortgage Registration | 1-2% | Loan principal amount |
What's the annual property tax rate in Dakar for built homes and apartments?
Dakar property owners pay an annual tax rate of 5% on the assessed rental value of their built properties.
The tax applies to both houses and apartments and is calculated on the estimated annual rental value set by the tax authority (DGID), not the purchase price. Main residences benefit from a 1.5 million FCFA deduction from the tax base.
For a property worth 50 million FCFA with an estimated rental value of 3 million FCFA annually, the calculation works as follows: if it's your main residence, you subtract the 1.5 million FCFA deduction, leaving a tax base of 1.5 million FCFA. The annual tax would be 5% Ă— 1.5 million = 75,000 FCFA.
If the same property is not your main residence, you pay 5% Ă— 3 million FCFA = 150,000 FCFA annually. This main residence deduction can eliminate the tax entirely if the assessed rental value is below 1.5 million FCFA.
How does Dakar determine my property's taxable value?
Dakar uses a market rental value estimation system based on comparables and a standardized points system, increasingly supported by digital census data and satellite imagery.
Property owners can declare their rental value, but the tax administration can adjust it based on location benchmarks, property size, and characteristics. The valuation process considers similar properties in your area and applies a formula that accounts for factors like neighborhood quality, building age, and amenities.
Values are updated through periodic cadastral surveys, with authorities pushing for more regular reassessments in 2025-26. For a home purchased at 50 million FCFA, if similar properties in your area rent for 250,000 FCFA monthly, your assessed annual rental value would be approximately 3 million FCFA.
This assessment directly determines your tax burden, making it crucial to understand how your property compares to local rental market rates.
What land tax applies to vacant plots in Dakar?
Vacant urban plots in Dakar are subject to a 5% tax rate on their estimated rental value, though practical rates work out to under 0.3-0.5% of the land's market value.
The calculation still uses the "rental value" concept, but for undeveloped land, this typically results in a nominal sum. Most valuation entries for vacant lots are set quite low, making the actual tax burden minimal compared to built properties.
For standard residential plots, expect annual land tax between 20,000-50,000 FCFA per year. If a vacant plot has a notional rental value of 500,000 FCFA annually, the land tax would be 25,000 FCFA (5% Ă— 500,000 FCFA).
It's something we develop in our Senegal property pack.
Which municipal fees are added to property taxes in Dakar?
The main additional municipal fee is the garbage collection tax ("Taxe d'Enlèvement des Ordures Ménagères"), charged at 3.6% of your property's annual rental value.
Unlike the property tax, this garbage collection fee has no abatement or discount for main residences. For a property with a 3 million FCFA annual assessed rental value, you'll pay 3.6% Ă— 3 million = 108,000 FCFA per year for garbage collection.
Street lighting and sanitation charges are typically bundled into local utility bills rather than appearing as separate fixed fees. Some apartment buildings may have syndicate or common area charges, but these vary by building management rather than being standardized municipal fees.
The garbage collection tax represents the most significant recurring municipal cost beyond the base property tax.
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What are the transfer and registration duties when buying property?
Property buyers in Dakar face significant upfront costs totaling 16.75-20.5% of the declared property value.
The main components include registration duties at 6% of the purchase price and stamp duty at approximately 10% of the property value. Notary fees range from 0.75-4.5% on a sliding scale, with survey fees typically adding 200,000-500,000 FCFA per plot.
| Cost Component | Rate | 50M FCFA Example |
|---|---|---|
| Registration Duties | 6% | 3,000,000 FCFA |
| Stamp Duty | 10% | 5,000,000 FCFA |
| Notary Fees | 1.5% (average) | 750,000 FCFA |
| Survey Fees | Fixed | 400,000 FCFA |
| Total Purchase Costs | 18.3% | 9,150,000 FCFA |
What are the notary and administrative fees for property transactions?
Notary fees in Dakar operate on a sliding scale from 0.75% to 4.5% of the property value, with most transactions falling around 1.5% for mid-range properties.
Land registry fees are included in the 6% registration duty mentioned earlier. Survey fees vary by plot complexity but typically range from 200,000 to 500,000 FCFA per property. Publication fees for official notices are usually modest, under 100,000 FCFA.
For a 50 million FCFA purchase, expect notary fees around 750,000 FCFA, survey costs of 400,000 FCFA, and minimal publication fees. The all-in professional service costs typically represent 2-3% of the transaction value.
These fees are essential parts of the legal transfer process and cannot be avoided or significantly reduced.
What extra costs apply when taking a mortgage in Dakar?
Mortgage-related costs in Dakar add 0.65-1.2 million FCFA to your closing expenses on a typical loan.
Banks charge arrangement fees of 0.5-1.0% of the loan amount, while mortgage registration duty costs 1-2% of the principal. Mandatory property appraisals cost 100,000-250,000 FCFA, and required life and home insurance typically costs 0.15-0.3% annually of the insured sum.
For a 35 million FCFA mortgage, the breakdown would be: bank fee (350,000 FCFA), registration duty (350,000-700,000 FCFA), appraisal (200,000 FCFA), plus annual insurance premiums of 52,500-105,000 FCFA.
These costs are in addition to your down payment and the standard purchase fees, significantly increasing your initial cash requirement.
How is rental income taxed in Senegal?
Rental income in Senegal is taxed at 25% after a 40% deduction for expenses and maintenance costs.
This tax applies to all rental income from real estate investments. The 40% deduction is automatic and covers typical landlord expenses like maintenance, repairs, property management, and vacancy periods.
For monthly rent of 600,000 FCFA, your annual rental income would be 7.2 million FCFA. After the 40% expense deduction (2.88 million FCFA), your taxable income becomes 4.32 million FCFA. The annual tax due would be 25% Ă— 4.32 million = 1.08 million FCFA.
This represents a significant portion of your rental income, making it crucial to factor into your investment return calculations.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Senegal 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.
Is VAT charged on new builds and developer sales?
New construction and developer sales in Dakar are subject to 18% VAT on the full sale price, but only when the property is not purchased as a primary residence.
The VAT applies to the complete purchase price, not just the developer's profit margin. This tax must be paid at closing as part of your purchase costs. Primary residence purchases are exempt from this VAT requirement.
For a new 50 million FCFA apartment bought as an investment property, you would pay an additional 9 million FCFA in VAT. This makes new construction significantly more expensive than resale properties for investment purposes.
It's something we develop in our Senegal property pack.
What recurring ownership costs should I budget beyond taxes?
Annual ownership costs for a typical two-bedroom apartment in Dakar range from 400,000 to 700,000 FCFA beyond property taxes.
Homeowners association (HOA) or syndicate fees in newer buildings typically cost 300,000-700,000 FCFA annually for a two-bedroom unit. Building insurance runs 50,000-150,000 FCFA per year for basic coverage. Municipal garbage collection tax adds another 108,000 FCFA annually for our example property.
Additional costs may include security services, building maintenance reserves, and utility connections. Older buildings generally have lower syndicate fees but may require more individual maintenance spending.
These recurring costs can significantly impact your net rental yield, often reducing returns by 1-2% annually compared to gross rental income.
What capital gains taxes apply when selling property?
Capital gains taxation in Dakar varies significantly based on whether the property was your main residence and how long you owned it.
Main residences held for more than five years are often exempt from capital gains tax. Investment properties face progressive personal tax rates up to 30-39% on gains, though enforcement for ordinary individuals is limited in practice.
For a 15 million FCFA gain on an investment property sale, you could face 4.5-6 million FCFA in capital gains tax depending on your tax regime and holding period. Primary residences with sufficient holding periods typically owe no tax on the gain.
Consulting with a local notary or tax accountant is essential for optimizing your sale structure and minimizing tax liability.
What are the payment deadlines and procedures for property taxes?
Property tax declarations are typically sent out between March and April, with payment due after official notice, usually between May and July.
As of 2025, payment must be made in person at Treasury offices, though online payment systems are being piloted but not fully implemented. You'll need your national ID or Tax ID (NINEA), ownership deed, and tax notice for payment.
Late payments incur interest and surcharges, commonly 1% per month after the due date. The exact penalty rate can vary, making timely payment important to avoid accumulating additional costs.
It's something we develop in our Senegal 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 Dakar's property tax structure is essential for successful real estate investment in Senegal's capital.
While the costs may seem substantial, proper planning and understanding of the tax implications can help you make informed investment decisions and avoid unexpected expenses.
Sources
- ICTD - Property Tax Valuation Reform in Dakar
- PWC Tax Summaries - Senegal Corporate Taxes
- EDI - Property Tax in Senegal
- Funding Innovation - Digital Property Tax Management
- Le Monde - Satellite Imagery Property Tax Collection
- Resilient Cities Network - Dakar Strategy
- World Bank - Senegal Waste Management
- The African Investor - Buy Land in Senegal