Authored by the expert who managed and guided the team behind the Ghana Property Pack
Everything you need to know before buying real estate is included in our Ghana Property Pack
Property transactions in Ghana involve multiple taxes and fees that can significantly impact your total investment cost.
From stamp duty and Lands Commission registration fees to ongoing property rates and potential rental income taxes, the complete cost structure extends far beyond the purchase price itself.
If you want to go deeper, you can check our pack of documents related to the real estate market in Ghana, based on reliable facts and data, not opinions or rumors.
Property buyers in Ghana face stamp duty (1% for properties over GHS 50,000), Lands Commission fees (GHS 2,000-5,000+), and legal costs (3-10% of property value).
Annual recurring costs include property rates (0.5-3% of assessed value), ground rent for leaseholds, and estate management fees in gated communities.
| Cost Category | Typical Rate/Amount | Example (GHS 3.5M Property) |
|---|---|---|
| Stamp Duty | 1% (properties over GHS 50,000) | GHS 35,500 |
| Legal Fees | 3-10% of property value | GHS 105,000-350,000 |
| Lands Commission Registration | GHS 2,000-5,000+ per plot | GHS 3,500 |
| Annual Property Rates | 0.5-3% of assessed value | GHS 35,500-88,750/year |
| Agent Commission | 5% of sale price | GHS 177,500 |
| Building Permit (new builds) | GHS 15,000-25,000+ | GHS 20,000 |
| Estate Management (if applicable) | GHS 12,000-24,000/year | GHS 18,000/year |
What determines the exact tax rates for my Ghana property purchase?
Your property tax calculations depend on three critical factors that must be established before any accurate cost projection can be made.
The purchase price determines your stamp duty rate, with properties over GHS 50,000 subject to 1% stamp duty. For example, a GHS 3,550,000 apartment in prime Accra would incur GHS 35,500 in stamp duty alone.
The district or municipal assembly location significantly impacts your ongoing annual property rates. Accra Metropolitan Assembly (AMA) typically charges 2.5-3% of assessed property value annually, while rural assemblies may only charge 0.5-1%. This means the same GHS 3,550,000 property could face annual rates ranging from GHS 17,750 to GHS 106,500.
Property classification as residential, commercial, or land also affects tax treatment. Commercial properties generally face higher assembly rates, while residential properties benefit from more favorable tax treatment under current Ghana Revenue Authority guidelines.
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How does freehold versus leasehold tenure affect my costs?
Most urban properties in Ghana are leasehold rather than freehold, which creates additional ongoing financial obligations you must factor into your investment calculations.
Foreigners can typically obtain maximum 50-year leaseholds, while Ghanaian citizens can secure up to 99-year terms. The remaining lease term directly affects both property value and annual ground rent obligations.
Annual ground rent for leasehold properties varies widely based on location and traditional authority requirements. Typical rates range from GHS 100 to GHS 1,000 per plot annually in Accra, though prime locations can command significantly higher amounts.
This ground rent represents a permanent annual expense that reduces your net rental yield if you're buying for investment purposes. A GHS 500 annual ground rent on a property generating GHS 120,000 yearly rental income represents just 0.4% of gross income, but this percentage increases substantially in lower-rent areas.
What stamp duty will I pay and who is responsible for payment?
Ghana's stamp duty follows a progressive rate structure that significantly impacts transaction costs for higher-value properties.
Properties valued up to GHS 10,000 incur 0.25% stamp duty, while those between GHS 10,000 and GHS 50,000 face 0.5% rates. All properties exceeding GHS 50,000 in value are subject to the maximum 1% stamp duty rate.
The buyer bears full responsibility for stamp duty payment, which must be completed before the transaction can be legally registered. This payment occurs directly to the Ghana Revenue Authority, typically through designated banks or GRA offices.
For a typical middle-class property purchase of GHS 2,036,000 in Kumasi, stamp duty would total GHS 20,360. This amount must be paid in addition to all other transaction costs and cannot be financed as part of a mortgage arrangement.
What are the complete Lands Commission registration costs?
Lands Commission fees represent one of the most complex and variable cost categories in Ghana property transactions, requiring multiple separate payments for different services.
| Service | Cost Range (GHS) | Notes |
|---|---|---|
| Official Land Search | 132-238 | Per property searched |
| First Registration (deed/title) | 1,148-1,178 | New title creation |
| Deed Registration Transfer | 283 | Per 0.5 hectare |
| Transfer Application | 973 | Part or whole transfer |
| Site Plan Preparation | 800 | Official survey plan |
| Field Inspection | 75-150 | Urban properties |
| Administrative Processing | 500-1,000 | Various certificates |
Total Lands Commission costs typically range from GHS 2,000 to GHS 5,000 per standard residential plot, excluding private legal and survey work. Larger properties or complex title situations can push costs significantly higher.
These fees must be paid directly to official Lands Commission offices with proper receipts obtained to avoid corruption-related delays or additional unofficial payments.
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How much should I budget for legal work and notarization?
Legal fees represent the largest variable cost category in Ghana property transactions, with rates regulated but varying significantly based on property value and complexity.
Regulated legal fees typically range from 3% to 10% of property value, with rates declining as property values increase. For a GHS 3,550,000 property, expect legal fees around 5% or GHS 177,500, though high-value transactions may negotiate down to 3%.
These legal costs cover comprehensive due diligence, deed preparation, title searches, contract review, and transaction completion. Additional notary fees of GHS 1,500 to GHS 5,000 may apply for deed witnessing and affidavit preparation.
Legal representation is mandatory for all property transactions in Ghana, making this cost unavoidable. The investment in proper legal work protects against title defects, boundary disputes, and fraudulent transactions that are unfortunately common in Ghana's property market.
Always engage Ghana Bar Association-certified lawyers with specific property transaction experience rather than general practitioners to ensure comprehensive protection.
What are the official survey and valuation costs?
Professional survey and valuation services are essential components of property transactions that ensure accurate boundaries and fair market pricing.
Private surveyor site plan preparation typically costs GHS 2,000 to GHS 8,000 depending on property size and complexity. Urban residential plots generally fall toward the lower end of this range, while larger or irregularly shaped properties require more extensive work.
Official valuation reports for stamp duty and mortgage purposes range from GHS 2,000 to GHS 5,000 per assessment. Banks typically require independent valuations for mortgage approvals, adding to overall transaction costs.
These survey and valuation costs are separate from Lands Commission fees and must be completed by licensed professionals. Accurate surveys prevent future boundary disputes that can be extremely costly and time-consuming to resolve through Ghana's court system.
What building and development permit fees apply to new construction?
New construction and major renovation projects face additional regulatory fees that must be factored into development budgets.
Building permits for medium to high-value residential construction typically cost GHS 15,000 to GHS 25,000 per project. These permits must be obtained from the relevant Municipal or Metropolitan Assembly before construction begins.
Development levies and inspection fees add another GHS 2,000 to GHS 5,000 to project costs, covering mandatory inspections at various construction stages. Some assemblies also impose infrastructure development contributions based on project size and location.
Planning permission delays can extend project timelines significantly, making early permit application essential for construction schedules. Penalties for unpermitted construction can exceed the original permit costs and may require expensive modifications to achieve compliance.
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How much do real estate agents charge including all taxes and levies?
Real estate agent commissions in Ghana follow standardized rates, though the payment responsibility varies between buyer and seller arrangements.
The official agent commission rate stands at 5% of the sale price, traditionally paid by the seller but sometimes factored into buyer negotiations or charged directly to buyers in certain market segments.
For a GHS 3,550,000 property transaction, agent commission totals GHS 177,500. VAT-registered agencies may add 15% VAT plus NHIL and GETFund levies totaling 1-3% additional charges on commercial or developer services.
Agent services typically include property marketing, buyer identification, transaction coordination, and document preparation assistance. However, agents cannot replace proper legal representation and buyers must still engage independent lawyers for transaction completion.
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What mortgage-related costs should I expect from lenders?
Mortgage financing introduces multiple additional costs that significantly impact the total property acquisition expense.
Arrangement and processing fees typically range from 2% to 3% of the loan amount. For a GHS 1,000,000 mortgage, expect GHS 20,000 to GHS 30,000 in upfront lender charges.
Title and mortgage registration through the Lands Commission costs 2% of property value plus administrative fees of GHS 500 to GHS 800. Bank-appointed valuation services add GHS 2,000 to GHS 5,000, while internal legal review fees often total 1% of the loan value.
Compulsory building and fire insurance represents an ongoing annual expense of 0.2% to 0.4% of property value. For a GHS 3,550,000 property, annual insurance premiums range from GHS 7,100 to GHS 14,200.
These mortgage-related costs can add 5% to 7% to your total property acquisition cost, making cash purchases more financially attractive despite the larger upfront capital requirement.
What annual property rates will I pay to local assemblies?
Annual property rates represent the most significant recurring ownership cost and vary dramatically based on property location and local assembly policies.
Prime Accra residential properties face property rates of approximately 2.5% to 3% of assessed property value annually. For a GHS 3,550,000 property, this translates to GHS 88,750 to GHS 106,500 per year in property rates.
Rural and low-density areas typically impose much lower rates of 0.5% to 1% annually. The same GHS 3,550,000 property in a rural assembly area might only face GHS 17,750 to GHS 35,500 in annual rates.
Commercial and industrial properties generally face rates toward the upper end of each assembly's range. Property rate calculations are based on assessed rather than market values, though assessments often lag significantly behind current market conditions.
These rates fund local government services including waste collection, street maintenance, and security provision. Non-payment can result in property liens and eventual forced sale proceedings.
What other recurring ownership charges will I face annually?
Property ownership in Ghana involves multiple recurring charges beyond official property rates that impact long-term investment returns.
Ground rent obligations for leasehold properties range from GHS 100 to GHS 1,000 annually per plot, though prime locations can command significantly higher amounts. This rent is paid to the traditional authority or lessor as specified in the lease agreement.
Estate and homeowners association fees in gated communities typically cost GHS 1,000 to GHS 2,000 monthly, totaling GHS 12,000 to GHS 24,000 annually. These fees cover security, maintenance, cleaning, and common area upkeep in managed developments.
Sanitation and refuse collection levies add GHS 300 to GHS 1,000 annually, either collected through assembly bills or paid directly to service providers. Some areas also impose water and sewerage connection maintenance fees.
These recurring costs can total GHS 15,000 to GHS 30,000 annually for properties in managed estates, significantly impacting rental yield calculations for investment properties.
What taxes apply to rental income and property sales?
Rental income and capital gains from Ghana property sales face specific tax obligations that affect investment returns and exit strategies.
Resident landlords pay 8% quarterly withholding tax on gross rental income, credited against their annual income tax liability. Final income tax rates typically range from 15% to 25% based on total income levels.
Non-resident property owners face 15% quarterly withholding tax on gross rental income, which typically represents their final tax liability with no additional filing requirements.
Capital gains tax applies at a flat 15% rate on property sale profits, calculated as the difference between sale price and original purchase price plus allowable improvement costs. The seller bears responsibility for this tax payment through the Ghana Revenue Authority.
For example, rental income of GHS 120,000 annually would generate GHS 9,600 in quarterly withholding tax for residents. A property sale generating GHS 800,000 profit would incur GHS 120,000 in capital gains tax.
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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 Ghana's property tax and fee structure is crucial for making informed investment decisions in the country's real estate market.
While the initial transaction costs can be substantial, proper planning and budgeting ensure you avoid unexpected expenses that could undermine your investment returns.
Sources
- Quao Realty - Building vs Buying Analysis Ghana 2025
- The African Vestor - Ghana Property Taxes Guide
- Ghana Lands Commission Official Website
- Ghana Lands Commission Fees and Charges
- Chreston - Property Buying Fees Ghana
- Ghana Bar Association Approved Fees
- Vaal Property - Documentation Guide Ghana
- Global Property Guide - Ghana Buying Guide
- Floorspace Realty - Property Acquisition Costs Ghana
- Ghana Revenue Authority - Stamp Duty Act