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Everything you need to know before buying real estate is included in our Senegal Property Pack
Understanding property taxes and fees in Senegal is crucial for anyone considering real estate investment in this West African nation.
Senegal imposes a comprehensive system of property taxes, transaction fees, and registration costs that can significantly impact your investment returns, with annual property taxes at 5% of rental value and total transaction costs reaching up to 20.5% of property value.
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 Senegal face an annual tax of 5% on their property's rental value, while buyers typically pay 16.75% to 20.5% of the property value in transaction costs.
Rental income is taxed at 20% on net income, and capital gains from property sales incur a 30% tax rate on net gains.
| Tax/Fee Type | Rate | Who Pays |
|---|---|---|
| Annual Property Tax | 5% of rental value | Property Owner |
| Stamp Duty | 10% of property value | Buyer |
| Land Registry Fee | 6% of property value | Buyer |
| Notary Fees | 0.75% to 4.5% of value | Buyer |
| Capital Gains Tax | 30% of net gains | Seller |
| Rental Income Tax | 20% of net income | Property Owner |
| Garbage Collection Tax (Dakar) | 3.6% of rental value | Property Owner |
What is the annual property tax rate in Senegal?
Senegal imposes an annual property tax of 5% calculated on the property's rental value.
This tax applies to all properties, whether built or unbuilt, and regardless of whether you live in the property or rent it out. The rental value is determined by local tax authorities based on comparable market rates in your area.
In Dakar, property owners face an additional garbage collection tax of 3.6% of the rental value on top of the standard 5% property tax. This means Dakar property owners effectively pay 8.6% of their property's rental value annually in taxes.
As of September 2025, vacant or inadequately developed lands may incur municipal surcharges ranging from 1% to 3% of the rental value, depending on the specific locality and property value.
Are there ongoing annual property taxes beyond the basic rate?
Yes, several additional annual taxes apply to property owners in Senegal beyond the standard 5% property tax.
Property owners in Dakar must pay a garbage collection tax of 3.6% of the property's rental value annually. This tax is collected together with the regular property tax notice and helps fund municipal waste management services.
Municipal authorities can impose surcharges on vacant or underdeveloped properties ranging from 1% to 3% of the rental value. These surcharges encourage property development and prevent speculation on unused land, particularly in urban areas where housing demand is high.
It's something we develop in our Senegal property pack.
What tax rate applies to rental income from properties in Senegal?
Rental income from property in Senegal is taxed at a flat rate of 20% on net income.
This 20% tax applies to your net rental income after deducting allowable expenses such as maintenance costs, management fees, and property taxes. Both resident and non-resident property owners face the same tax rate on Senegalese-source rental income.
A 5% withholding tax is automatically deducted at source by tenants when monthly rent exceeds XOF 150,000 (approximately $250). This withholding tax is credited against your annual income tax liability.
Non-resident property owners must file annual tax returns in Senegal to declare their rental income and pay the 20% tax, even if withholding tax has already been deducted.
What taxes apply when transferring or selling property in Senegal?
Property transfers and sales in Senegal incur a stamp duty of 10% of the property value, paid by the buyer during registration.
This 10% stamp duty is a significant cost that buyers must factor into their total acquisition budget. The stamp duty applies to all property transactions, whether the buyer is a resident or non-resident.
Additionally, a land registry fee of 6% of the property value applies for registering ownership transfer. This fee ensures your ownership is properly recorded in official government records.
Combined with other transaction costs, buyers typically face total fees and taxes of 16.75% to 20.5% of the property purchase price when acquiring real estate in Senegal.
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What is the capital gains tax rate on property sales in Senegal?
Capital gains from property sales in Senegal are taxed at 30% on net gains.
The capital gains tax applies to the difference between your sale price and your original purchase price, minus allowable deductions. You can deduct acquisition costs, improvement costs, and certain transaction expenses when calculating your net gain.
This 30% rate applies to both residents and non-residents selling property in Senegal. The tax must be paid when filing your annual tax return in the year the sale occurs.
Documentation of all acquisition costs, improvements, and related expenses is crucial for minimizing your capital gains tax liability, so maintain detailed records throughout your ownership period.
What fees apply for registering property ownership in Senegal?
Property ownership registration in Senegal requires a land registry fee of 6% of the property value.
This 6% fee covers the cost of officially recording your ownership in government land registries and issuing title documents. The fee is typically paid by the buyer during the property acquisition process.
Registration also requires various administrative fees and document preparation costs, though these are generally minor compared to the 6% registry fee. Proper registration is essential for securing clear legal title to your property.
Foreign buyers face the same registration fees as local buyers, with no additional charges based on nationality or residency status.
How much are notary fees when purchasing property in Senegal?
Notary fees in Senegal range from 0.75% to 4.5% of the property value, depending on the transaction size and complexity.
Lower-value properties typically incur notary fees at the higher end of this range, while expensive properties benefit from reduced percentage rates. These fees cover document preparation, legal verification, and transaction oversight by licensed notaries.
Notaries in Senegal play a crucial role in property transactions, ensuring all legal requirements are met and documents are properly executed. Their involvement is mandatory for most real estate transactions.
It's something we develop in our Senegal property pack.
What are the total transaction costs when buying property in Senegal?
Total transaction costs for property buyers in Senegal typically range from 16.75% to 20.5% of the property purchase price.
| Cost Component | Rate | Typical Amount on $100,000 Property |
|---|---|---|
| Stamp Duty | 10% | $10,000 |
| Land Registry Fee | 6% | $6,000 |
| Notary Fees | 0.75% - 4.5% | $750 - $4,500 |
| Legal and Administrative Fees | 0.5% - 1% | $500 - $1,000 |
| Total Transaction Costs | 16.75% - 20.5% | $16,750 - $20,500 |
These high transaction costs make property investment in Senegal a significant financial commitment that requires careful budgeting beyond the purchase price.
Sellers also face costs, typically paying real estate agent commissions of 5% to 8% of the sale price, plus capital gains tax if applicable.
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 there a stamp duty or similar tax on property transfers in Senegal?
Yes, Senegal imposes a 10% stamp duty on all property transfers, paid by the buyer.
This stamp duty is one of the largest components of transaction costs in Senegalese real estate deals. It applies to the full purchase price of the property and must be paid during the registration process.
An additional Apostille certificate stamp duty of XOF 2,000 (approximately $3) may apply for notarized documents, though this represents a minimal cost compared to the main stamp duty.
The 10% stamp duty cannot be avoided or reduced through any legal means, making it a fixed cost that all property buyers must budget for when acquiring real estate in Senegal.
Are there special property taxes for non-resident owners in Senegal?
No, there are no special property taxes specifically for non-resident property owners in Senegal.
Non-resident property owners pay the same annual property tax of 5% of rental value as residents. They also face identical rates for rental income tax (20% on net income) and capital gains tax (30% on net gains).
Non-residents must comply with the same tax filing requirements and deadlines as residents for their Senegalese property income. This includes filing annual tax returns to declare rental income and capital gains.
The equal treatment of resident and non-resident property owners makes Senegal relatively welcoming to foreign real estate investors from a tax perspective, though transaction costs remain high for all buyers.
What local taxes and municipal fees apply to property owners?
Local property taxes and municipal fees in Senegal vary by location but typically include garbage collection taxes and municipal surcharges.
In Dakar, property owners pay a garbage collection tax of 3.6% of the property's rental value annually. This tax funds municipal waste management services and is collected along with the standard property tax.
Municipal surcharges of 1% to 3% of rental value may apply to vacant or inadequately developed properties. These surcharges encourage property development and prevent speculation on unused urban land.
Other municipalities outside Dakar may impose their own local taxes and fees, though rates and structures can vary significantly between different regions and cities across Senegal.
It's something we develop in our Senegal property pack.
Are there taxes specifically targeting vacant properties in Senegal?
Senegal does not impose a specific national tax on vacant properties, but municipal surcharges serve a similar purpose.
Municipal authorities can impose surcharges ranging from 1% to 3% of rental value on vacant or inadequately developed properties. These surcharges encourage property owners to develop or utilize their land rather than leaving it empty.
The surcharge rates and enforcement vary by municipality, with urban areas like Dakar more likely to actively implement these policies. Rural areas may have less stringent enforcement of vacant property surcharges.
These municipal surcharges effectively function as a vacancy tax, encouraging productive use of property while generating revenue for local governments to fund development and infrastructure projects.
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.
Property investment in Senegal requires careful consideration of the comprehensive tax structure, with annual taxes at 5% of rental value and substantial transaction costs of up to 20.5% of purchase price.
Understanding these costs upfront allows investors to make informed decisions and properly budget for their Senegalese real estate investments, whether for personal use or rental income generation.
Sources
- Lloyd's Bank Trade - Senegal Taxes
- ICTD - Property Tax Valuation Reform Dakar
- Global Property Guide - Senegal Taxes and Costs
- Global Property Guide - Senegal Buying Guide
- EDI - Property Tax Senegal Report
- The Africanvestor - Buy Land Senegal
- EAI International - Senegal Tax Guide
- Global Property Guide - Senegal Rental Income Tax