Authored by the expert who managed and guided the team behind the Ivory Coast Property Pack
Everything you need to know before buying real estate is included in our Ivory Coast Property Pack
Property investment in Ivory Coast requires understanding a complex landscape of taxes, fees, and registration duties that can significantly impact your total investment cost.
Buyers face multiple charges including registration fees of 10%, notary fees of 1-3%, and annual property tax of 0.5%, with additional considerations for VAT, mortgage costs, and rental income taxation that vary based on property type and buyer status.
If you want to go deeper, you can check our pack of documents related to the real estate market in Ivory Coast, based on reliable facts and data, not opinions or rumors.
Property acquisition costs in Ivory Coast include 10% registration duties, 1-3% notary fees, and potential 18% VAT on new properties, with annual property tax at 0.5% of market value.
Foreign buyers can only acquire 99-year leases, while rental income faces progressive taxation of 10-25% and capital gains are taxed up to 35% depending on total income levels.
| Cost Category | Rate/Percentage | Who Pays |
|---|---|---|
| Registration Duties | 10% of property value | Buyer |
| Notary Fees | 1-3% of declared value | Buyer |
| Real Estate Commission | 3-5% of sale price | Seller (typically) |
| VAT (New Properties) | 18% of purchase price | Buyer |
| Annual Property Tax | 0.5% of market value | Property Owner |
| Rental Income Tax | 10-25% progressive rate | Property Owner |
| Capital Gains Tax | 0-35% on profit | Seller |
What is the official purchase price of property in XOF, and does VAT apply?
The official purchase price is the negotiated amount agreed between buyer and seller, documented in XOF in the sale agreement.
VAT at 18% applies to new properties sold directly by developers but typically does not apply to resale transactions between individuals. For new constructions or properties sold by development companies, the 18% VAT is often added on top of the advertised price.
Resale properties between private individuals generally exclude VAT, but you must confirm this with your notary before signing any agreement. The VAT status significantly impacts your total acquisition cost, potentially adding 18 million XOF to a 100 million XOF new property purchase.
As of September 2025, the VAT rate remains at 18% for applicable real estate transactions, making it crucial to clarify whether your target property falls under VAT obligations during initial negotiations.
What are the registration duties when buying property?
Registration duties in Ivory Coast amount to approximately 10% of the property's declared value and include all government administrative charges, stamp duties, and transfer fees.
This 10% covers the complete registration process including document filing, official property transfer, and various administrative stamps required by Ivorian law. Both local and foreign buyers face the same registration fee structure.
The registration duties are calculated on the declared purchase price stated in the notarial deed, not on any separate property valuation. If you purchase a property for 50 million XOF, expect to pay 5 million XOF in registration duties.
These fees are mandatory and non-negotiable, representing one of the largest transaction costs after the purchase price itself. Payment typically occurs at the notary's office during the final property transfer process.
How are notary fees calculated on the property value?
Notary services are mandatory for all real estate transactions in Ivory Coast, with fees ranging from 1% to 3% of the declared property value.
The notary fee typically averages around 2% of the transaction value and covers document authentication, legal due diligence, property title verification, and official registration with government authorities. Notaries play a crucial role in ensuring the transaction's legal validity.
For a 100 million XOF property, expect notary fees between 1 million XOF and 3 million XOF, with most transactions falling around 2 million XOF. The exact percentage often depends on the property's complexity and the notary's specific fee structure.
These fees are separate from registration duties and represent payment for professional legal services rather than government taxes. The notary's involvement is legally required and cannot be bypassed to reduce costs.
What are stamp duties and cadastral registration fees?
Stamp duties and cadastral registration fees are included within the overall 10% registration cost mentioned earlier rather than being separate charges.
The Ivorian system consolidates these various administrative fees into the single registration duty percentage, simplifying the fee structure for buyers. This includes land registry updates, cadastral mapping fees, and various official stamps required for property transfer.
Minor additional fixed fees may apply for specific certificates or additional document copies, but these typically amount to only a few thousand XOF and are negligible compared to the main transaction costs.
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As of September 2025, this consolidated approach continues to streamline the fee structure for property buyers, avoiding the confusion of multiple separate charges common in other jurisdictions.
What are typical real estate agency commissions?
Real estate agency commissions in Ivory Coast typically range from 3% to 5% of the final sale price.
Standard market practice dictates that the seller pays the real estate commission, though buyer-agency agreements may allocate additional costs to purchasers depending on the specific arrangement. The commission covers property marketing, buyer sourcing, negotiation assistance, and transaction coordination.
For a 100 million XOF property sale, the commission would range from 3 million to 5 million XOF, usually around 4 million XOF. This cost typically does not affect the buyer's direct expenses unless specifically negotiated otherwise in the purchase agreement.
Some agencies may charge both parties in complex transactions or luxury property sales, but this arrangement must be clearly disclosed upfront. International buyers should verify commission structures before engaging with local real estate agents.
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What are mortgage registration fees for financed purchases?
Mortgage registration fees typically range from 1% to 2% of the loan amount when financing property purchases through Ivorian banks.
These fees cover bank setup costs, file processing charges, mortgage registration with government authorities, and legal documentation for the loan security. Foreign buyers often face additional requirements including 10-30% down payments and higher interest rates ranging from 6% to 11%.
For a 70 million XOF mortgage on a 100 million XOF property, expect mortgage registration fees between 700,000 XOF and 1.4 million XOF. Banks may also charge additional processing fees, insurance requirements, and guarantee costs.
The exact fee structure varies significantly between financial institutions, making it essential to compare multiple lenders before committing to financing. Some banks offer reduced fees for larger loans or established clients.
How is annual property tax calculated?
As of September 2025, Ivory Coast applies a flat annual property tax rate of 0.5% of the property's market value for all built properties.
This represents a significant simplification from previous progressive tax systems, with the current flat rate applying equally to residential and commercial properties. The tax is calculated based on the property's current market value rather than its historical purchase price.
For a property worth 100 million XOF, the annual property tax amounts to 500,000 XOF. The government sets minimum threshold values to ensure consistent tax application across different regions and property types.
Property owners receive annual tax bills and must pay this tax regardless of whether the property is occupied, rented, or vacant. Non-payment can result in penalties and potential property seizure procedures.
Are there municipal or local taxes beyond national property tax?
Municipal and local taxes exist but remain relatively minor compared to the national property tax, typically amounting to a few thousand XOF annually per property.
These local levies commonly include garbage collection fees, street maintenance contributions, and minor municipal services charges that vary by commune and city. Abidjan properties may face slightly higher municipal charges than properties in smaller cities.
Total annual municipal taxes typically range from 10,000 to 50,000 XOF depending on the property's location and local government policies. These amounts are minimal compared to the main 0.5% property tax.
Local tax structures can change based on municipal elections and local infrastructure projects, but they rarely represent significant financial burdens for property owners. Payment methods and timing vary by municipality.
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What taxes apply to rental income from property?
Rental income from Ivorian properties faces progressive income tax rates ranging from 10% to 25% depending on the property owner's total taxable income level.
Individual property owners must declare rental income as part of their annual tax returns, with the effective tax rate determined by their overall income bracket. Higher earners face rates approaching 25%, while those with modest total incomes may pay closer to 10%.
For example, if you earn 12 million XOF annually in rental income and fall into a 20% tax bracket, you would pay approximately 2.4 million XOF in taxes on that rental income. Allowable deductions include maintenance costs, management fees, and property-related expenses.
Non-resident property owners may face different tax treatment and should consult local tax advisors for specific guidance. Failure to declare rental income can result in significant penalties and interest charges.
How is capital gains tax calculated when reselling property?
Capital gains from property resale in Ivory Coast are taxed as regular income, with rates ranging from 0% to 35% depending on the seller's total taxable income.
The tax applies to the profit made between the original purchase price (including acquisition costs) and the final sale price (minus selling expenses). Deductible expenses include original notary fees, registration duties, major renovations, and current sale transaction costs.
For a property bought at 100 million XOF and sold for 150 million XOF with 5 million XOF in deductible expenses, the taxable gain would be 45 million XOF. If your tax bracket is 25%, you would pay 11.25 million XOF in capital gains tax.
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The tax rate depends on your total annual income including the capital gain, potentially pushing you into higher tax brackets and increasing the effective rate on the property profit.
Are there exemptions or special rates for certain buyers?
Limited tax exemptions exist primarily for social housing projects and certain first-time Ivorian buyers, but these benefits rarely apply to private international property investors.
Recent government programs have introduced capped mortgage interest rates at 5.5% for qualifying social housing purchases, primarily targeting local first-time buyers. Some affordable housing developments may receive temporary property tax exemptions during their initial years.
Foreign buyers face significant restrictions, as only 99-year leases are permitted rather than freehold ownership. Agricultural land purchases by foreigners are heavily restricted with very limited exemption possibilities.
Special exemptions for agricultural projects or social housing developments exist but require specific government approval and typically do not apply to standard residential or commercial property investments by foreign nationals.
Can you provide a complete cost example for a 100 million XOF property?
Here's a comprehensive breakdown of total acquisition and ongoing costs for a 100 million XOF property purchase in Ivory Coast as of September 2025.
| Cost Category | Rate/Amount | Cost in XOF |
|---|---|---|
| Purchase Price | 100% | 100,000,000 |
| Registration Duties | 10% | 10,000,000 |
| Notary Fees | 2% (average) | 2,000,000 |
| VAT (if new property) | 18% | 18,000,000 |
| Mortgage Registration | 1.5% of loan | 1,050,000* |
| Total Initial Cost | - | 112,000,000-131,050,000 |
| Annual Property Tax | 0.5% | 500,000 |
| Municipal Taxes | Fixed amount | 20,000 |
*Based on 70 million XOF mortgage amount
The total initial investment ranges from 112 million XOF for a resale property to 131 million XOF for a new property with VAT and mortgage financing. Annual ongoing costs total approximately 520,000 XOF plus any rental income taxes if applicable.
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Additional costs may include insurance, maintenance, management fees, and capital gains tax upon eventual resale, making the total investment significantly higher than the initial purchase price.
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 the complete cost structure of property investment in Ivory Coast is crucial for making informed investment decisions and avoiding unexpected financial surprises.
With total acquisition costs potentially reaching 30% above the purchase price and ongoing annual obligations, proper financial planning becomes essential for successful property investment in the Ivorian market.
Sources
- WTS Global - Côte d'Ivoire Property Tax Changes
- The African Investor - Ivory Coast Real Estate for Foreigners
- Abidjan Media - Côte d'Ivoire Property Documentation
- Oxford Business Group - Côte d'Ivoire VAT Regulations
- Tranio - Real Estate Agent Commissions
- LOGRI - Côte d'Ivoire Local Government
- Lincoln Institute - Property Tax Systems
- Heavnn University - Capital Gains Tax Côte d'Ivoire
- Economie Ivoirienne - Housing Policy
- PwC Tax Summaries - Ivory Coast