Property Sale Taxes, Deductions and Transfer Fees in Accra, Ghana

Capital Gains Tax and Holding-Period Rules

Real estate disposals in Ghana are taxed under the Income Tax Act, 2015 (Act 896), as amended by the Income Tax (Amendment) Act, 2023 (Act 1094). When a property owner in Accra sells a land or building asset, the resulting net profit is classified as a gain from the realisation of an asset.

For resident individual owners in 2026, net capital gains can be taxed at an optional flat rate of 25% (increased from 15% under Act 1094). Alternatively, an individual may choose to add the net gain to their annual assessable income, where it is subjected to the standard graduated personal income tax bands, which reach a top marginal rate of 35% on annual income exceeding GHS 600,000. Corporate property owners pay the standard corporate income tax rate of 25% on net gains, included within their annual business income tax returns.

Taxable net gain is calculated by taking the total consideration received and deducting the original acquisition cost, cost of capital improvements, and direct expenses incurred during disposal (such as legal, valuation, and survey fees). Ghanaian tax legislation does not offer holding-period relief. The same tax rates apply whether a property is held for 6 months or 15 years, as there are no discounts or exemptions linked to ownership duration.

Sellers must submit a Capital Gains Tax Return to the Ghana Revenue Authority (GRA) within 30 days of the asset realisation date, irrespective of whether a tax liability arises.

Taxation of Non-Residents

Non-resident individuals and foreign corporate bodies selling real estate located in Accra are subject to tax on all Ghana-source capital gains. For non-resident individual sellers, net gains are assessed at the non-resident personal income tax rate of 25% in 2026.

The principal distinction between resident and non-resident sellers lies in the upfront withholding tax (WHT) rate applied at the point of sale. Under Section 116 of Act 896 (as amended by Act 1094), corporate buyers or commercial entities acquiring a capital asset from a non-resident person must deduct 10% WHT from the gross purchase price. In contrast, sales by resident persons attract a 3% WHT rate on gross consideration.

Non-residents cannot claim standard resident personal tax relief bands, but they may claim relief under double taxation treaties (DTTs) signed between Ghana and their country of tax residence, provided an official tax residency certificate is submitted to the GRA.

Withholding Tax at Sale

Withholding tax on capital asset disposals functions as an advance collection mechanism enforced by the GRA. When a business, enterprise, or legal entity purchases real estate in Ghana, it is legally mandated to deduct WHT from the purchase price before transferring funds to the seller.

In 2026, the applicable WHT rates on asset sales are:

• Resident sellers: 3% of gross purchase price
• Non-resident sellers: 10% of gross purchase price

The buyer must remit the withheld tax to the GRA by the 15th day of the month following the transaction. The buyer then issues a GRA WHT Credit Certificate to the seller. The seller presents this certificate when filing their final tax return with the GRA to offset the advance WHT against their final calculated capital gains tax liability.

If the buyer is a private individual purchasing residential property for personal use, WHT obligations generally do not apply at the transaction source; the seller remains responsible for declaring and settling the full capital gains tax directly with the GRA within 30 days.

Sell-Side Agency and Legal Costs

Disposing of real estate in Accra incurs direct professional transaction costs that reduce net seller proceeds.

Brokerage and Estate Agency Fees

Estate agency commissions in Accra are negotiated freely between the property owner and the listing broker. Standard market practice for sell-side representation ranges between 3% and 5% of the agreed gross sale price. Value Added Tax (VAT) at the standard rate of 15%, plus the National Health Insurance Levy (NHIL) at 2.5%, Ghana Education Trust Fund Levy (GETFL) at 2.5%, and COVID-19 Health Recovery Levy at 1%, applies to brokerage invoices issued by registered corporate agencies.

Legal Conveyancing Fees

Legal fees for real estate transactions are governed by the Ghana Bar Association (GBA) Scale of Fees. Conveyancing fees on sell-side representation typically range from 3% to 10% of the property value, depending on the transaction complexity and final contract value. High-value commercial transactions often settle closer to 3% to 5%.

Additional incidental costs payable by the seller include property valuation fees (governed by the Ghana Institution of Surveyors rate cards) and fees for obtaining official certificates, such as a Tax Clearance Certificate from the GRA or title search updates from the Land Registration Division of the Lands Commission.

Repatriation of Sale Proceeds

Foreign investors, non-resident foreign nationals, and Ghanaian expats seeking to convert Cedi proceeds into foreign currency and transfer funds out of Ghana must operate within the legal framework established by the Foreign Exchange Act, 2006 (Act 723) and the Ghana Investment Promotion Centre Act, 2013 (Act 865).

Act 865 guarantees foreign investors the right to unconditionally convert and transfer funds abroad in respect of net profits, dividends, and proceeds from the sale or liquidation of real estate assets, provided all tax obligations are satisfied.

To execute an outward foreign currency wire transfer, commercial banks operating as Authorized Dealer Banks in Ghana require the seller to submit the following documentation:

1. Tax Clearance Certificate (TCC) issued by the Ghana Revenue Authority proving full settlement of capital gains tax and WHT obligations 2. Executed Sale and Purchase Agreement and Deed of Assignment certified by the Land Registration Division of the Lands Commission 3. Proof of initial capital entry, such as an original Swift MT103 advice showing foreign exchange imported into Ghana through an authorized bank, or a GIPC registration certificate 4. Commercial bank source-of-funds declaration and anti-money laundering (AML) compliance documentation

Once authorized dealer banks verify the GRA Tax Clearance Certificate and foreign inflow lineage, funds are converted at prevailing interbank exchange rates and remitted abroad.

Tax law and statutory rates in Ghana are subject to legislative updates by Parliament.