Authored by the expert who managed and guided the team behind the Mozambique Property Pack
Everything you need to know before buying real estate is included in our Mozambique Property Pack
Buying property in Mozambique as a foreigner means budgeting for more than just the purchase price, and knowing exactly what taxes, fees, and hidden costs to expect can save you from expensive surprises.
This guide breaks down every cost you will face when buying residential property in Mozambique in 2026, from mandatory government taxes to optional but recommended professional fees.
We constantly update this blog post to reflect the latest tax rates, legal changes, and market conditions in Mozambique.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Mozambique.
Fact-checked and reviewed by our local expert
Alexia Vieira
Founder and President of Fundacion Khanimambo and Humbi Farm
Overall, how much extra should I budget on top of the purchase price in Mozambique in 2026?
How much are total buyer closing costs in Mozambique in 2026?
As of early 2026, you should plan to budget around 6% extra on top of the purchase price for total buyer closing costs in Mozambique, which translates to roughly 3,800,000 MZN, 60,000 USD, or 55,000 EUR on a typical mid-range property.
If you keep expenses to the bare legal minimum and everything goes smoothly, you might get away with around 4% in closing costs, meaning approximately 2,500,000 MZN, 40,000 USD, or 37,000 EUR on a similar property.
However, if you want to be safe and account for all potential fees including extensive legal due diligence and document regularization, you should realistically plan for up to 9% of the purchase price, or roughly 5,700,000 MZN, 90,000 USD, or 83,000 EUR.
The main factors that determine whether your closing costs in Mozambique fall at the low or high end include the quality of the property's paperwork, whether you need extensive translations and certified documents, how much professional legal help you require, and whether the property's land use rights (DUAT) or building permits need regularization before transfer.
What's the usual total % of fees and taxes over the purchase price in Mozambique?
The usual total percentage of fees and taxes over the purchase price in Mozambique is around 6%, which most buyers should use as their planning baseline.
The realistic low-to-high percentage range that covers most standard property transactions in Mozambique runs from about 4% for very straightforward deals to 9% for more complex purchases requiring additional professional support.
Of that total percentage, roughly 2.2% goes to government taxes (SISA transfer tax and stamp duty), while the remaining 3% to 4% covers professional service fees including registration, notary costs, lawyer fees, and practical expenses like translations.
By the way, you will find much more detailed data in our property pack covering the real estate market in Mozambique.
What costs are always mandatory when buying in Mozambique in 2026?
As of early 2026, the mandatory costs when buying property in Mozambique include SISA (property transfer tax at 2%), stamp duty on the transfer contract (0.2%), registry and notary fees set by official schedules, and the core certificates needed to prove registration and title status.
Optional but highly recommended costs for foreign buyers in Mozambique include hiring an independent lawyer to verify title and land use rights, certified translations and interpreter services if you do not read Portuguese, a property valuation, and a technical inspection for structural and utility issues.
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What taxes do I pay when buying a property in Mozambique in 2026?
What is the property transfer tax rate in Mozambique in 2026?
As of early 2026, the standard property transfer tax rate in Mozambique (called SISA) is 2% of the property value, assessed on the higher of the declared price or the official taxable value.
There is generally no extra transfer tax just for being a foreigner in Mozambique, but buyers purchasing through entities based in "privileged tax regimes" (essentially tax havens) face a higher SISA rate of 10%.
Buyers typically do not pay VAT on residential property purchases in Mozambique because the sale and purchase of real property is exempt from VAT under the Mozambican VAT Code.
Stamp duty in Mozambique is typically due when you sign the transfer contract and is calculated at 0.2% of the property value.
Are there tax exemptions or reduced rates for first-time buyers in Mozambique?
Mozambique does not currently offer a broad first-time buyer exemption on transfer taxes like SISA and stamp duty, but newly built residential properties may qualify for a 5-year exemption from the annual municipal property tax (IPRA).
If you buy property through a company instead of as an individual in Mozambique, the transaction taxes at purchase (SISA and stamp duty) remain similar, but your rental income taxation, compliance costs, and capital gains treatment when you sell can change significantly.
For new-build versus resale properties in Mozambique, the main tax difference is that new residential construction may benefit from the temporary IPRA exemption, while VAT treatment on the transfer itself typically remains exempt regardless of whether the property is new or resale.
Since Mozambique does not advertise a formal first-time buyer tax holiday, there are no specific documentation requirements to qualify for such exemptions, but buyers of new builds should ensure their property is properly registered with the municipality to claim the IPRA exemption.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mozambique 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.
Which professional fees will I pay as a buyer in Mozambique in 2026?
How much does a notary or conveyancing lawyer cost in Mozambique in 2026?
As of early 2026, lawyer or conveyancing support in Mozambique typically costs between 1% and 2% of the purchase price, which could mean roughly 630,000 to 1,270,000 MZN, 10,000 to 20,000 USD, or 9,200 to 18,400 EUR on a mid-range property.
Notary and registry fees in Mozambique are based on official government schedules rather than freely negotiated, and together these administrative costs often run between 1% and 2% of the purchase price once you add up all required acts and filings.
Translation and interpreter services for foreign buyers in Mozambique typically cost between 0.2% and 0.7% of the purchase price, or roughly 125,000 to 445,000 MZN, 2,000 to 7,000 USD, or 1,850 to 6,450 EUR depending on the number of documents and signing sessions involved.
A tax advisor in Mozambique is highly recommended if you are buying through an offshore or company structure or plan to rent out the property, and this service typically costs between 0.3% and 1% of the purchase price, or roughly 190,000 to 635,000 MZN, 3,000 to 10,000 USD, or 2,750 to 9,200 EUR.
We have a whole part dedicated to these topics in our our real estate pack about Mozambique.
What's the typical real estate agent fee in Mozambique in 2026?
As of early 2026, real estate agent fees in Mozambique are commonly negotiated and typically range from 2% to 5% of the purchase price, which could mean roughly 1,270,000 to 3,175,000 MZN, 20,000 to 50,000 USD, or 18,400 to 46,000 EUR on a mid-range property.
In most cases in Mozambique, the seller pays the real estate agent commission, but buyer-paid arrangements do exist, especially if you hire a dedicated buyer's agent or relocation service, so you should always clarify this in writing before making an offer.
The realistic low-to-high range for agent fees in Mozambique runs from about 2% for straightforward transactions with experienced local agents to 5% when additional services like property sourcing or relocation support are included.
How much do legal checks cost (title, liens, permits) in Mozambique?
Legal checks in Mozambique, including title search, liens verification, registry certificates, and permits review, typically cost between 0.5% and 1.5% of the purchase price, or roughly 315,000 to 950,000 MZN, 5,000 to 15,000 USD, or 4,600 to 13,800 EUR depending on the complexity of the file.
Property valuation fees in Mozambique typically cost between 0.3% and 0.8% of the purchase price, or roughly 190,000 to 510,000 MZN, 3,000 to 8,000 USD, or 2,750 to 7,350 EUR, and this is required if you are financing the purchase or optional but smart if you are unfamiliar with local pricing.
The most critical legal check that should never be skipped in Mozambique is verifying the seller's DUAT (land use rights) and ensuring the property's building permits are in order, because land in Mozambique is state-owned and land use rights administration can seriously complicate or even block a transfer.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Mozambique.
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What hidden or surprise costs should I watch for in Mozambique right now?
What are the most common unexpected fees buyers discover in Mozambique?
The most common unexpected fees buyers discover in Mozambique include paperwork regularization costs when documents are not clean (missing permits or outdated registry entries), unpaid condominium arrears, extra rounds of notarization and certified copies, and DUAT-related delays that eat up professional time and money.
Yes, you can inherit problems from unpaid property taxes in Mozambique, because if IPRA (the annual municipal tax) has not been paid, municipalities can impose late-payment penalties and you may need to clear the arrears before completing a clean transfer.
Scams with fake listings and fake fees do happen in Mozambique, so you should always verify the seller's identity and ownership through official registry searches, never pay reservation fees before your lawyer confirms everything, and only transfer money through traceable channels.
Fees that are usually not disclosed upfront in Mozambique include certificate and administrative costs, translation and notarization repeats when documents need corrections, condominium arrears, and the cost of regularizing documentation issues discovered during due diligence.
In our property pack covering the property buying process in Mozambique, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Mozambique?
If the property has a tenant in Mozambique, you may face extra costs of roughly 125,000 to 635,000 MZN, 2,000 to 10,000 USD, or 1,850 to 9,200 EUR for legal review of the existing lease and potential negotiation or compensation if you want vacant possession.
When you buy a tenanted property in Mozambique, you inherit the existing lease agreement and become the new landlord, meaning you must honor the lease terms and handle any landlord obligations including rental income tax compliance.
Terminating an existing lease immediately after purchase in Mozambique is generally not straightforward, and you would typically need to wait for the lease to expire naturally or negotiate an early termination with compensation to the tenant.
A sitting tenant in Mozambique can affect the property's market value and your negotiating position, sometimes positively if you want guaranteed rental income, or negatively if buyers perceive the tenant as difficult to remove or the lease terms as unfavorable.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Mozambique.
We have made this infographic to give you a quick and clear snapshot of the property market in Mozambique. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Mozambique?
Which closing costs are negotiable in Mozambique right now?
The closing costs that are usually negotiable in Mozambique include lawyer fees, agent commission allocation between buyer and seller, and who pays for certain certificates and administrative steps, which can all be agreed upon contractually.
The closing costs that are fixed by law and cannot be negotiated in Mozambique include SISA (the 2% transfer tax), stamp duty (0.2%), and official registry and notary fees that follow government schedules.
On negotiable fees in Mozambique, buyers can typically achieve discounts of 10% to 20% on lawyer fees by comparing quotes, and agent commission splits can often be renegotiated depending on market conditions and the seller's motivation.
Can I ask the seller to cover some closing costs in Mozambique?
In Mozambique, there is a reasonable chance that a seller will agree to cover some closing costs, especially in a slower market or if the property has been listed for a while, but this depends heavily on how motivated the seller is.
The specific closing costs sellers are most commonly willing to cover in Mozambique include the real estate agent commission (which is traditionally the seller's responsibility anyway), document regularization costs needed to make the file transferable, and clearing any IPRA or condominium arrears before closing.
Sellers in Mozambique are more likely to accept covering closing costs when the market is slower, when the property has been on the market for several months, or when the paperwork has issues that would otherwise delay or complicate the sale.
Is price bargaining common in Mozambique in 2026?
As of early 2026, price bargaining is common and expected when buying property in Mozambique, especially outside the prime areas of Maputo, and sellers generally anticipate that buyers will negotiate.
Buyers in Mozambique typically negotiate between 5% and 12% below the asking price, which could mean savings of roughly 3,175,000 to 7,620,000 MZN, 50,000 to 120,000 USD, or 46,000 to 110,000 EUR on a mid-range property, with larger discounts possible when paperwork is messy or the seller is motivated.
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What monthly, quarterly or annual costs will I pay as an owner in Mozambique?
What's the realistic monthly owner budget in Mozambique right now?
A realistic monthly owner budget in Mozambique (excluding mortgage payments) is around 25,000 to 40,000 MZN, 400 to 630 USD, or 370 to 580 EUR for a typical urban apartment, though this varies based on property type and location.
The main recurring expense categories that make up this monthly budget in Mozambique include utilities (electricity and water), condominium or security contributions, routine maintenance, and a repairs sinking fund for unexpected issues.
The realistic low-to-high range for monthly owner costs in Mozambique runs from about 12,700 to 38,000 MZN, 200 to 600 USD, or 185 to 550 EUR for an apartment or condo, up to 19,000 to 57,000 MZN, 300 to 900 USD, or 275 to 830 EUR for a standalone house with garden and security.
The monthly cost that tends to vary the most in Mozambique is electricity, because many buildings rely on backup generators and power systems, and tariffs can fluctuate, making energy costs unpredictable especially in coastal and humid areas.
You can see how this budget affect your gross and rental yields in Mozambique here.
What is the annual property tax amount in Mozambique in 2026?
As of early 2026, the annual property tax in Mozambique (called IPRA) for residential property is 0.4% of the municipal patrimonial value, which often works out to roughly 0.2% to 0.3% of the actual market price if the assessed value is lower, meaning approximately 125,000 to 190,000 MZN, 2,000 to 3,000 USD, or 1,850 to 2,750 EUR on a typical property.
The realistic low-to-high range for annual property taxes in Mozambique runs from roughly 63,000 MZN, 1,000 USD, or 920 EUR for lower-value properties to 380,000 MZN, 6,000 USD, or 5,500 EUR for higher-value homes, depending on the municipal patrimonial value on record.
Property tax (IPRA) in Mozambique is calculated based on the municipal patrimonial value, which is determined by the municipality and is often lower than the actual market price you paid, and you typically pay it in two installments in January and June each year.
Newly built residential properties in Mozambique may qualify for a 5-year exemption from IPRA, but you need to ensure the property is properly registered with the municipality and meets the conditions for the exemption.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Mozambique. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Mozambique in 2026?
What tax rate applies to rental income in Mozambique in 2026?
As of early 2026, non-resident property owners in Mozambique typically face a rental income tax rate of 20% on their gross rental income, while residents have their rental income taxed within the personal income framework at progressive rates.
Whether landlords can deduct expenses from rental income taxes in Mozambique depends on the tax regime that applies, and many foreign owners experience a withholding-style taxation where deductions are limited in practice unless you structure and file appropriately.
The realistic effective tax rate range after deductions for typical landlords in Mozambique is around 15% to 20% for non-residents, but residents who properly structure their rental activity may achieve lower effective rates depending on allowable deductions and their overall income bracket.
Foreign property owners in Mozambique generally pay a flat 20% rate on rental income (as shown in non-resident rate tables), while resident landlords are taxed at progressive personal income rates that could be higher or lower depending on their total income.
Do I pay tax on short-term rentals in Mozambique in 2026?
As of early 2026, yes, you are generally required to pay tax on short-term rental income in Mozambique, and operating short-term rentals may be treated more like a hospitality activity, which could trigger additional licensing requirements and potentially VAT obligations depending on how you provide services.
Short-term rental income in Mozambique may be taxed differently than long-term rental income because frequent turnover and hotel-like services can push your activity into a business classification, meaning you should assume you will have income tax on the rent plus extra compliance requirements.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Mozambique.
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If I sell later, what taxes and fees will I pay in Mozambique in 2026?
What's the total cost of selling as a % of price in Mozambique in 2026?
As of early 2026, the total cost of selling a property in Mozambique typically runs between 4% and 8% of the sale price, depending on your agent commission, legal help, and whether you have capital gains tax to pay.
The realistic low-to-high percentage range for total selling costs in Mozambique spans from about 4% for straightforward sales with minimal professional fees to 8% when you include higher agent commissions and significant capital gains tax.
The specific cost categories that typically make up selling expenses in Mozambique include real estate agent commission (often the largest item), legal fees for preparing documents, registry certificate updates, and any capital gains tax due on your profit.
The single largest contributor to selling expenses in Mozambique is usually the real estate agent commission, which can range from 2% to 5% of the sale price depending on the agreement.
What capital gains tax applies when selling in Mozambique in 2026?
As of early 2026, capital gains tax on property sales in Mozambique can reach up to 32% of the taxable gain under the new autonomous capital gains regime introduced in January 2026, though the effective rate may be lower depending on how the gain is calculated.
The main exemption mechanism historically used in Mozambique is that only 50% of the gain from transfers of immovable property rights is taxable, which could effectively halve your tax burden, but you should confirm with a local tax advisor whether this still applies under the January 2026 reforms.
Foreigners selling property in Mozambique do not face a specific "foreigner surcharge," and your capital gains tax depends primarily on your residency status, whether you sell as an individual or through a company, and how the gain is categorized.
Capital gains in Mozambique are generally calculated as the sale price minus the original purchase price, and adjustments for improvements or costs may be allowable depending on documentation, but you should work with a tax advisor to optimize your position under the current rules.
We made this infographic to show you how property prices in Mozambique compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Mozambique, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| PwC Worldwide Tax Summaries (Mozambique) | PwC is a top-tier global tax firm with structured summaries. | We used it to confirm the standard 2% SISA rate and the 10% privileged regime exception. We also anchored how Mozambique frames property transfer taxation. |
| DLA Piper Africa (Mozambique) | Major international law firm publishing jurisdiction-specific legal updates. | We used it to reflect the January 2026 capital gains reform with brackets up to 32%. We built maximum-tax sale scenarios using these new brackets. |
| RSM Mozambique Tax Pocket Guide | Large international accounting network with practical tax references. | We used it to confirm the 20% non-resident rate for rental income. We estimated rental tax outcomes for foreign property owners. |
| World Bank Doing Business 2020 (Mozambique) | International organization with documented methodology and cost models. | We used it to anchor closing costs at around 5% of property value. We translated that into a buyer-facing budget range. |
| VdA Vieira de Almeida | Major Portuguese-speaking law firm with formal legal overviews. | We used it to corroborate the 2% SISA and 0.2% stamp duty rates. We cross-checked these figures against other legal sources. |
| TTA Advogados | Specialist law firm note citing specific legal articles. | We used it to confirm the VAT exemption for property sales. We also verified stamp duty at 0.2% on transfer contracts. |
| Pemba Municipal Council | Official municipal government page explaining actual local taxes. | We used it to confirm the 0.4% IPRA rate and the 5-year exemption for new builds. We estimated annual owner costs using these rules. |
| APIEX (Investment Promotion Agency) | Mozambique's official investment agency with government-issued guides. | We used it to frame the foreign buyer admin reality. We sanity-checked tax categories and how Mozambique describes its tax system. |
| INM Official Gazette | Official publisher of Mozambique's legal instruments. | We used it to verify that notary and registry fees follow formal schedules. We justified why fees are table-driven rather than purely negotiable. |
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