Property Tax

The following constitute the base and the rates of property tax. Because of the decentralisation policy, the collection and administering of these taxes has been vested in local authorities (Provinces and Districts). Under law No. 17/2002 of 10/05/02, property tax based on sources listed as 4 and 5 below as also provided by the decree of December 28, 1973 modified and completed to date remains under the jurisdiction of the Central Government.

1st base: Occupied houses
The tax on the floor of houses is fixed per square meter

Location	Rates of tax/ square meter
Kigali	50Frw < 210 Frw
Other urban areas	50 Frw < 130 Frw
Trading centers	25 Frw < 96 Frw
Other places	5 Frw < 55 Frw

Under article 15 of the above law, if one builds a storied house, he/she will have his/her tax rate rates reduced by 50% for the 1st floor constructed and from the 2nd floor upwards, his/her tax will be reduced by 75% while for each additional floor built upwards his/her tax will be reduced by 100%. If one builds an underground house, he/she is exempted from the tax. The District, town or city Council fixes the actual tax rate in accordance with the provisions of article 6 of the above law.

2nd base: Registered land not yet developed.
Tax on unused registered or unregistered plots whether being subject to a long term bail contract, rental contract or leased is calculated on the basis of square meters. Tax on unbuilt plots is fixed by the District, Town or City of Kigali as follows:

Location	Rates of tax/ square meter
Kigali City	20 Frw < 50 Frw
Other urban areas	10 Frw < 20Frw
Trading centers	1 Frw < 10 Frw

Rural areas the tax is determined by the district or town council but it should not exceed 1000 Frw per hectare.

If the taxpayer owns more than 20 hectares, he/she is taxed at a rate ranging from 1001 Frw to 2000 Frw for every additional hectare, the first being exempted from tax and fractions of hectares being not considered

Under article 18 of law No.17/2002 of 10/05/02, the following are exempted from the fixed asset tax:

a) land that is exclusively used for educational, medical, research and sporting activities which are proved not to be profit driven;
b) land on which Government, District and town infrastructure are affected or are to be affected;
c) land used by diplomatic missions in Rwanda if their countries do not levy tax on land used by Rwandan diplomatic missions;
d) land used for charitable activities.