Immovable Property tax

The property tax is assessed and paid by the owner or any other person considered to be the owner. The property owner who lives abroad can have a representative in Rwanda and the representative must fulfil the tax liability that the Law requires from the owner.

The tax liability on immovable property is not terminated or deferred if the owner of immovable property has disappeared without leaving behind someone to manage the immovable property on his or her behalf.

If immovable property is owned by more than one person, the co-owners appoint and authorize one of them to represent them collectively as a group of taxpayers.

If co-owners of immovable property did not appoint a co-owner to represent them collectively as a group of taxpayers, the tax obligations related to the immovable property are settled in accordance with laws regulating co-owned property.

In case of transfer of ownership of an immovable property for any reason within the tax period, the acquirer of immovable property is liable for tax from the date of the transfer (Prorated).

The immovable property tax is calculated based on the following:

• Building tax: This is based on the market Value of the building and its associated plot of land.
• Land tax: This is based on land rates per square meter.

Immovable property tax rates vary depending on the property's market value and purpose (e.g.: residential, commercial, or industrial).

• Zero to FRW 80 per square meter of the surface of land;
• 0.5% of the market value of both the building and related plot of land for residential use;
• 0.3% of the market value of both building and related plot of land for commercial use;
• 0.1% of the market value of both the building and related plot of land for industrial use, building and plot belonging to micro-enterprises and small businesses.

In determining the taxable value of a commercial or industrial building, machinery and other equipment attached to the building are not considered.

However, special consideration is given to the following:

• A plot and a building for residential use of three floors are taxed at the rate of 0.25% of their market value;
• A plot and a building for residential use with more than three floors are taxed at the rate of 0.1% of their market value.

The following immovable properties are exempted from the immovable property tax:

• One building intended by the owner to be occupied as his or her dwelling and its annex buildings located in a residential plot for one family. That building remains considered as his or her dwelling even when he/she does not occupy it for various reasons;
• Immovable property determined by the district Council or the Council of the City of Kigali as owned by vulnerable persons;
• Immovable property owned by the State, decentralized entities, and public institutions, except when used for profit-making or leasing;
• Immovable property belonging to foreign diplomatic missions if their countries exempt Rwandan diplomatic missions from property tax.
• Land used for agriculture, livestock, or forestry activities whose area is equal to or less than 2 hectares.
• Land reserved for residential construction but where no basic infrastructure has been erected.

A declaration of immovable property tax must be filed and paid not later than December 31st of the year corresponding to the first tax period. The declaration is made online through the Rwanda Automated Local Government Taxes Management System.

Valuation Cycle: Immovable Property valuation is done every five years, beginning January 1 of the first taxable year.

Payment: After declaration, similarly to other taxes, immovable property tax can be paid through the following methods: Mobile Money, Airtel Money, Mobile Banking, MobiCash and Internet Banking.