Property Transfer Tax (PTT) Increase
As of 1 January, the Property Transfer Tax has increased from 5% to 8% for transfers of land, buildings, shares, intellectual property and related rights. Transactions involving mining and processing licences continue to be taxed at 10%.
This change raises the upfront cost of buying property or shares, potentially deterring some buyers and prompting sellers to re-evaluate pricing strategies.
Advance Income Tax (AIT) on Large Remittances
A new 15% AIT applies to remittances over USD 2,000 (or equivalent in Kwacha) made via commercial banks without a valid Tax Clearance Certificate (TCC).
This impacts purchasers funding deals through remittances—they'll need to secure a TCC to avoid the additional tax, otherwise the extra cost could make buyers hesitant.
Rental Income Tax Adjustments
Rental income turnover tax has also been revised:
Annual Rental Income (ZMW) | 2024 Tax Rate | 2025 Tax Rate |
|---|---|---|
Up to 12,000 | 0% | 0% |
12,000 – 800,000 | 4% | 4% |
Above 800,000 | 12.5% | 16% |
Landlords with high-earning properties now face higher tax rates, which could affect rental pricing and profitability unless adjustments are made.
Summary at a Glance
- PTT: Increased from 5% to 8% (10% for mining-related assets).
- AIT: 15% on remittances > USD 2,000 without TCC.
- Rental Tax: Now 16% for income above ZMW 800,000 (previously 12.5%).
