Selling property in Kigali: capital gains, notary fees and repatriation

Capital gains tax and tax liabilities

Sellers of real estate in Kigali are subject to tax on capital gains under the administration of the Rwanda Revenue Authority (RRA). Effective May 2025, the capital gains tax rate on the sale of commercial immovable property and secondary property assets stands at 10%. The taxable gain is calculated as the net profit remaining after deducting the original documented acquisition price and allowable capital expenditure from the final selling price.

Rwandan tax law does not grant holding-period relief or tapering discounts based on the length of ownership; the 10% tax rate applies equally whether the property was held for one year or twenty years. Primary residential homes owned and occupied by individuals are generally exempt from capital gains tax upon sale, provided the transaction satisfies RRA primary residence criteria.

Non-resident taxation and withholding rules

Non-resident individuals and foreign corporate entities selling property in Kigali are subject to the same 10% capital gains tax rate on net gains as domestic owners. However, tax clearance procedures require strict compliance before legal title can be transferred at the land registry.

When a buyer is a registered corporate entity or business enterprise, Rwandan tax rules require the buyer to withhold 15% withholding tax (WHT) on payment payments made to non-resident entities unless an active tax exemption certificate or double taxation treaty (DTT) provision applies. Where WHT is withheld at transaction, the amount is credited against the final capital gains liability assessed by the RRA. Individual-to-individual transactions require the seller to declare and settle their CGT liability directly with the RRA to obtain an official tax clearance certificate.

Agency and legal transaction costs

Selling real estate in Kigali involves administrative fees, legal costs and brokerage commissions that reduce gross sale proceeds:

• Real estate agency commission: Real estate brokers in Kigali typically charge a seller commission of 5% of the gross sale price, subject to 18% Value Added Tax (VAT). Broker fees are not fixed by statute, but 5% represents the standard market rate enforced by professional agencies.
• Legal representation: Conveyancing legal fees generally range between 1% and 2% of the total property value, negotiated directly with an advocate registered with the Rwanda Bar Association.
• Notarisation fees: Sale contracts must be notarised before submitting title transfer applications. A public notary at the Sector office charges RWF 500 per contract page. If a private notary is selected through the land system, notarisation fees are set at RWF 6,500 per contract copy.
• Registry and application fees: Property transfers are filed digitally through the IremboGov portal (`irembo.gov.rw`), which is overseen by the National Land Authority (NLA). The official title transfer service fee charged by NLA is free of charge, but an Irembo system processing fee of RWF 25,000 applies per transaction.

Capital repatriation and foreign currency rules

Repatriation of capital gains and transaction proceeds by non-resident sellers is governed by the National Bank of Rwanda (BNR). Under BNR foreign exchange regulations issued in September 2025, the Rwandan Franc (RWF) is the mandatory legal tender for domestic real estate transactions unless explicit BNR authorization is granted.

To convert sale proceeds into foreign currency (such as USD or EUR) and transfer them out of Rwanda, commercial banks require the seller to submit four mandatory documents:

1. The notarised property sale agreement signed by both parties. 2. The official title transfer certificate or Unique Parcel Identifier (UPI) update confirmation issued by the National Land Authority. 3. An official Tax Clearance Certificate issued by the Rwanda Revenue Authority confirming all capital gains taxes have been paid. 4. Proof of initial foreign capital inflow or proof of lawful property acquisition.

Once compliance documents are verified, commercial banks process international wire transfers without central bank restriction.