The Zambian real estate sector has kicked off 2025 with a major shake-up—property transfer taxes have increased, sparking concern among buyers, sellers, and industry professionals alike.
Let’s break down what this means for you and the property market.
What is Property Transfer Tax (PTT)?
Property Transfer Tax (PTT) is a tax paid on the sale of property. It’s usually the seller’s responsibility since they receive the proceeds, but it can also be passed on to the buyer, depending on the terms of the sale contract.
As of 1st January 2025, PTT has increased from 5% to 8%—a significant jump that is bound to impact the property market.
How Does This Affect You?
Whether you’re a buyer or seller, this change will likely affect your real estate decisions:
- For Sellers:
Sellers may increase property prices to account for the higher tax, passing the cost onto buyers. - For Buyers:
Buyers may have to cover the higher tax themselves, depending on the sale agreement, making property purchases more expensive.
In either scenario, the Zambian Revenue Authority (ZRA) is the clear winner.
Is There Any Relief?
It’s worth noting that properties assessed in 2024 will reportedly still be taxed at the old rate of 5%. However, we strongly recommend seeking professional advice to confirm your specific situation.
What’s Next for the Real Estate Sector?
The increase has understandably caused concern within the industry. Many associations and real estate professionals are planning to engage the government in hopes of revisiting this decision. While the outcome remains uncertain, it’s clear that the conversation is far from over.
Stay Updated
This is just the beginning of several updates affecting the Zambian property market. At Diaspora Connect, we’re committed to keeping you informed about the latest changes and their implications.
Be sure to check back regularly or subscribe to our newsletter for timely updates and expert insights.
Have questions or concerns about your property goals in 2025? Contact us today—we’re here to help!
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