The full list of property taxes in Ghana in 2025

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THEAFRICANVESTOR

A team specialized in real estate investing in African countries (Ghana, Nigeria, Kenya, South Africa, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Ghana. If you'd like to learn more about us, you can check our presentation page.

What types of property taxes are charged in Ghana in 2025?

Ghana operates four main types of property-related taxes as we reach mid-2025.

The primary tax is the Property Rate, levied annually by local Metropolitan, Municipal, and District Assemblies (MMDAs) on all real estate owners including land, buildings, and immovable structures. This represents the core annual obligation for property owners across Ghana's 260 local assemblies.

Stamp Duty applies to all property transactions when buying or selling real estate, paid directly to the Ghana Revenue Authority. Capital Gains Tax hits property sellers on any profit made from sales, calculated at a flat 15% rate on the gain between purchase and sale prices.

VAT affects properties supplied by estate developers or commercial rental properties at 5% plus a 1% COVID-19 health levy, while commercial land transactions for non-agricultural purposes face 15% VAT plus the same 1% levy.

It's something we develop in our Ghana property pack.

How is property tax calculated in Ghana—what's the formula or percentage used?

Property tax calculation in Ghana follows a straightforward formula based on assessed property values.

The basic calculation is: Property Tax = Assessed Value × Applicable Rate. The Lands Valuation Division determines assessed values by evaluating location, property size, age, condition, and any improvements made to the property since construction.

Local assemblies set their own rates within a government-mandated range of 0.5% to 3% of the assessed value annually. Urban areas like Accra typically apply higher rates around 2-3%, while Kumasi averages approximately 1.5%, and rural districts often use rates closer to 0.5-1%.

For example, a residential property assessed at GHS 200,000 in Accra with a 2.5% rate would face annual property tax of GHS 5,000, while the same value property in a rural assembly with a 1% rate would pay GHS 2,000 annually.

Commercial and industrial properties consistently face higher rates than residential properties within the same district, often at the upper end of the 0.5-3% range.

What is the current property rate or annual levy applied by local assemblies?

Property rates in Ghana vary significantly by location as each of the 260 local assemblies sets its own rate within the 0.5-3% range.

Metropolitan areas command the highest rates, with Greater Accra Metropolitan Assembly typically applying rates between 2-3% of assessed values for most properties. Kumasi Metropolitan Assembly averages around 1.5-2% for residential properties and up to 2.5% for commercial properties.

Secondary cities like Tema, Cape Coast, and Takoradi generally apply rates in the 1.5-2.5% range, while smaller municipal assemblies across the country typically use rates between 1-2% for residential properties.

Rural district assemblies offer the lowest rates, often between 0.5-1.5%, reflecting lower property values and reduced municipal services. Northern regions including Upper East, Upper West, and Northern regions consistently apply rates at the lower end of the spectrum.

As of June 2025, no assembly applies a fixed amount regardless of property value—all use percentage-based calculations tied to assessed property values.

Is there a fixed property tax amount for residential vs. commercial properties?

Ghana does not operate fixed property tax amounts but uses different percentage rates for residential versus commercial properties.

Are there any exemptions or discounts on property tax for certain categories like the elderly or low-income households?

Ghana's property tax system includes several exemptions and potential discounts, though availability varies by local assembly.

Owner-occupied residential properties receive preferential treatment in most assemblies, often qualifying for reduced rates or partial exemptions compared to investment properties. Agricultural land used for farming purposes typically enjoys complete exemptions or significantly reduced rates to encourage food production.

Religious organizations and registered charitable institutions receive full exemptions when properties serve non-commercial purposes exclusively. Government properties and diplomatic missions also enjoy complete tax exemptions under national law.

Elderly citizens, disabled persons, and low-income households may qualify for discounts or payment deferrals in certain assemblies, but these programs vary widely by district. Some assemblies offer 25-50% discounts for seniors over 65 or households earning below specified income thresholds.

Veterans and ex-servicemen may receive preferential treatment in some assemblies, while first-time homeowners occasionally benefit from temporary reduced rates during their initial years of ownership.

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How often do you have to pay property tax in Ghana—monthly, quarterly, or annually?

Property tax in Ghana is billed and paid annually according to standard practice across all 260 local assemblies.

Most assemblies issue property tax bills once per year, typically between January and March, with payment deadlines usually falling between June and September. This annual billing cycle aligns with the government's fiscal year and allows assemblies to budget their revenue expectations.

Some larger assemblies including Accra Metropolitan Assembly and Kumasi Metropolitan Assembly offer installment payment options, allowing property owners to split annual obligations into quarterly or semi-annual payments without penalties.

Property owners receive assessment notices and payment demands from their respective assemblies, with payment accepted at assembly offices, designated banks, or increasingly through mobile money platforms and online payment systems.

It's something we develop in our Ghana property pack.

What are the penalties or interest rates for late or non-payment of property taxes?

Ghana's local assemblies impose various penalties for late or non-payment of property taxes, though specific rates and enforcement vary by district.

Late payment typically triggers penalty fees ranging from 10-25% of the outstanding tax amount after the official deadline passes. Interest on overdue amounts commonly accrues at rates between 2-5% per month until full payment is received.

Persistent non-payment can result in property liens, where the assembly places legal claims against the property preventing sale or transfer until taxes are settled. Some assemblies pursue legal action including court orders for debt recovery and potential asset seizure in extreme cases.

Assemblies may also restrict municipal services like waste collection, building permits, or business licenses for properties with outstanding tax obligations. Property owners with current tax payments often receive priority for government services and development projects.

Grace periods of 30-90 days beyond official deadlines are common before penalties apply, and some assemblies offer amnesty programs periodically to encourage voluntary compliance with reduced penalties.

How is land value tax different from property tax, and is it still active in 2025?

As of June 2025, Ghana does not operate a separate land value tax system—the property rate serves as the comprehensive local property taxation mechanism.

The current property rate system taxes both land and improvements (buildings, structures) together based on total assessed property value, rather than separating land value from improvement value. This integrated approach simplifies administration for local assemblies and reduces assessment complexity.

Historical discussions about implementing pure land value taxation focused on taxing only land value while exempting improvements, but these proposals have not been implemented nationwide. The 2025 focus remains on modernizing and improving the existing property rate system rather than introducing new tax categories.

Some policy analysts continue advocating for land value capture mechanisms, particularly in rapidly developing urban areas where land values appreciate significantly due to public infrastructure investments, but no concrete implementation timeline exists as we reach mid-2025.

The property rate remains the principal mechanism for local government revenue generation from real estate, with assemblies working to improve assessment accuracy and collection efficiency rather than restructuring the tax base.

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What fees or taxes are paid when buying or selling property in Ghana (stamp duty, capital gains, etc.)?

Property transactions in Ghana involve multiple taxes and fees that buyers and sellers must budget for beyond the property purchase price.

Are there special taxes for foreigners or non-residents who own property in Ghana?

Foreigners face identical property tax rates as Ghanaian citizens but encounter different income tax treatment on rental earnings.

Non-resident property owners pay the same annual property rates to local assemblies, with no special surcharges or foreign ownership taxes applied to real estate holdings. Stamp duty on property purchases applies equally regardless of buyer nationality at standard rates of 0.25-1% of property value.

The key difference emerges with rental income taxation, where non-residents pay 15% quarterly on rental earnings compared to 8% for Ghanaian residents. This higher rate reflects the standard non-resident income tax treatment across Ghana's tax system.

Capital gains tax applies uniformly at 15% of profits for both residents and non-residents when selling property. VAT on developer properties affects all buyers equally at 5% plus 1% COVID levy, with no nationality-based exemptions or surcharges.

Foreigners can own property through leasehold arrangements up to 50 years (renewable), and these ownership structures do not trigger additional taxation beyond standard property-related taxes affecting all owners.

Is there a difference in taxation based on the location of the property—urban vs rural or different districts?

Property taxation in Ghana varies dramatically by location due to the decentralized system where each local assembly sets its own rates within national guidelines.

Urban properties consistently face higher tax rates than rural properties, reflecting higher property values, better municipal services, and greater revenue needs in cities. Greater Accra region assemblies typically apply rates of 2-3%, while Northern region rural assemblies often use rates of 0.5-1.5%.

Metropolitan assemblies (Accra, Kumasi, Sekondi-Takoradi) command the highest rates given their extensive municipal services, infrastructure development, and higher property values. Municipal assemblies in secondary cities apply moderate rates typically between 1.5-2.5%.

District assemblies covering rural areas generally apply the lowest rates, often 0.5-1.5%, recognizing limited municipal services and lower property values in agricultural communities. Coastal tourist areas like Cape Coast and some parts of Western region may apply higher rates despite smaller populations due to tourism-driven property values.

Regional economic development levels also influence taxation, with assemblies in economically developed regions (Greater Accra, Ashanti, Western) typically applying higher rates than those in less developed regions (Northern, Upper East, Upper West).

What documents or assessments are needed to determine how much property tax you owe in Ghana?

Property tax assessment in Ghana requires specific documentation to establish ownership, value, and applicable tax rates.

Essential ownership documents include the Land Title Certificate or Registered Indenture proving legal ownership, Site Plan showing exact property boundaries and dimensions, and Lands Commission Search Report confirming clear title and any encumbrances on the property.

For properties with structures, Building Permits and completion certificates help assessors determine improvement values and compliance with local building codes. Property surveys and architectural drawings provide additional detail for accurate valuation of buildings and other improvements.

Assessment documentation includes Tax Clearance Certificates from previous years, Property Tax Receipts showing payment history, and any existing valuation reports from the Lands Valuation Division or certified private valuers.

Transaction-related documents for new purchases include Purchase Agreements or Sales Contracts, stamped Indentures showing transaction values, and any Lease Agreements if the property involves leasehold arrangements rather than freehold ownership.

It's something we develop in our Ghana 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.

Sources

1. Understanding Property Taxation in Ghana - VAAL
2. Property Taxes in Ghana - Lakeside Estate
3. A Guide to Property Tax in Ghana - Devtraco Plus
4. Ghana Tax Summaries - PwC
5. Overseas Property Ownership and Tax Considerations - VAAL
6. Tax Offences and Penalties - Ghana Revenue Authority
7. Tax Clearance Certificate - Ghana Revenue Authority
8. Can Foreigners Buy Property in Ghana - Rehoboth Properties