Frequently Asked Questions
Further explanation and details on purchasing property in Ghana, and considerations for your investment.
Can non Ghanaians purchase property?
There are no restrictions on foreigners buying property in Ghana.
Can I buy a freehold property?
No. All property transactions can only be leasehold. A lease-hold is a property that can be sold for a limited duration. In Ghana, the maximum ownership duration for expats is 50 years while for locals, it is 99 years. Leases are always renewable.
How difficult and how expensive is it to renew my lease?
In terms of a renewal process, the Freeholder will always extend leases as long as the lease is not in breach and even then they will allow the party to remedy it and then extend. It is seen as quite a foundation of the land system in Ghana that Government and individuals allow renewals and at minimal amounts. The formula to calculate cost is not clear, but again is seen as quite nominal.
What are my associated costs of buying a property?
Legal fees are regulated by the Ghana Bar Association. The following amounts are prescribed legal fees for conveyance: range from 3% -10% of the purchase price.
What property warranty and insurance comes with newly built properties?
The duration ranges from 1-5 years. This will vary with different developments.
What are the property taxes?
Property tax rates are payable by owners of immovable property to the local District Assembly. The rate of property tax differs depending on the location of the property.
What are the stamp taxes?
Stamp duty is paid, at rates ranging between 0.25% to 1% and 0.05 Ghana cedi (GHS) to GHS 25, depending on the type of transaction and the instrument. A stamp duty of 0.5% applies in the initial stated capital and any subsequent increase in the stated capital.
The stamp duty is not a tax on transactions but on documents brought into being for the purposes of recording transactions. It is, therefore, a tax on documents or specific instruments that have legal effect, such as the following:
- Insurance policies.
- Awards of cost in matters of dispute.
- Conveyances or transfers on the sale of any property.
- Appointment letters of new trustees.
- Natural resource leases or licences (e.g. mining, timber).
- Agreements or memoranda of agreement.
- Bills of exchange (e.g. issue of cheques).
- Bills of lading.
What are the investment yields?
Typical Investment yields are between 8 – 12%.
How often is rent paid?
Rental income is paid between one year to three years in advance. This is not the legal position as the law states rent should be paid maximum six months in advance every six months thereafter. In practice, rent is commonly paid one year in advance.
What are the monthly service charges for apartments?
This varies depending on location & development. Typical service charge in high end areas will be between $200-$300 per month.
What currency is used in Ghana for Property transactions?
All property is brought and sold with US Dollar rate or Cedis equivalent. Cedis is the currency of Ghana.