Immovable Property Tax
The Immovable Property Tax is governed byLaw No. 75/2018 of 07/08/2018 determining the source of revenue and property of decentralized entities.
Who has to pay?
The immovable property tax is assessed and paid by the owner, the usufructuary or any other person considered to be the owner.
The owner who lives abroad can have a proxy in Rwanda. Such a proxy must fulfil the tax liability that this Law requires from the owner. Misrepresentation is considered as if it is done by the owner
The owner who lives abroad can have a proxy in Rwanda. Such a proxy must fulfil the tax liability that this Law requires from the owner. Misrepresentation is considered as if it is done by the owner.
The tax liability on immovable property is not terminated or deferred by the disappearance of an owner of immovable property, or if the owner has disappeared without leaving behind a proxy or other person to manage the immovable property on his or her behalf.
Immovable Property Tax base
The immovable property tax is levied on the market value of a building and surface of a plot of land.
If the immovable property consists of a plot of land that is not built, the tax on immovable property is calculated on each square meter of the whole surface of the plot of land. Where the immovable property consists of a plot of land, a building and its improvements the tax on immovable property for a plot of land is calculated separately in accordance with the provisions of Paragraph 2 of this Article, while the tax on the building and its improvements is based on the market value.
Tax rate on buildings
The tax rate on buildings is determined as follows:
1º one per cent (1%) of the market value of a residential building;
2º zero point five per cent (0.5%) of the market value of the building for commercial buildings;
3º zero point one per cent (0.1%) of the market value of industrial buildings, buildings belonging to small and medium enterprises and those intended for other activities not specified in this Article.
Application of tax rate on buildings
Except for the tax rate of zero point one per cent (0.1%), the tax rates are applied progressively as follows:
1º for residential buildings a progressive rate is applied as follows:
a. Zero point twenty-five percent (0.25%) from the first year after the commencement of this Law;
b. Zero point fifty percent (0.50%) from the second year after the commencement of this Law;
c. Zero point seventy-five percent (0.75%) from the third year after the commencement of this Law;
d. One percent (1%) from the fourth year after the commencement of this Law;
2º for commercial buildings a progressive rate is applied as follows:
a. zero point two percent (0.2%) of the market value of the building is applied in the first year of the commencement of this Law;
b. zero point three percent (0.3%) during the second year of the commencement of this Law;
c. zero point four per cent (0.4%) during the third year of the commencement of this Law;
d. zero point five percent (0.5%) during the fourth year of the commencement of this Law
Residential apartments having a minimum of four floors, including basement floors, benefit from reduction of tax rates, equivalent to fifty percent (50%) of the ordinary rate.
Tax rate on plots of land
The tax rate on plot of land varies between zero (0) and three hundred Rwandan francs (FRW 300) per square meter.
The District Council determines the tax rate on square meter of plot of land based on criteria and standard rates set by an Order of the Minister in charge of taxes.
Tax rate for land exceeding the standard size of plot of land
The tax rate determined by the District Council per square meter of land in accordance with the provisions of Article 18 of this Law is increased by fifty percent (50%) applicable to land in excess to standard size of plot of land meant for construction of buildings.
The standard size of plot of land meant for construction of buildings are determined by an Order of the Minister in charge of housing.
Additional tax rate as referred to under Paragraph One of this Article does not apply to the plot of land acquired before the commencement of this Law.
Tax rate for undeveloped plot of land
Any undeveloped plot of land is subject to additional tax of one hundred percent (100%) to the tax rate referred to in Article 18 of this Law.
Tax declaration on immovable property by the taxpayer
Not later than 31st December of the year that corresponds to the first tax period, the taxpayer files to the tax administration his/her declaration of the immovable property tax determined in accordance with provisions of the Order of the Minister in charge of taxes.
A new declaration of immovable property tax is filed by not later than 31st December of the last year of each tax assessment cycle.
After declaration, Payment can be done through: Mobile Money, Infinity, Mobicash, E-banking, E-payment or go physically to any Commercial bank.