The purchase price is not what you pay. In Zimbabwe's property market, the figure on the agreement of sale is the starting point. This guide sets out every cost category a buyer and seller encounter in a Zimbabwe property transaction in 2026, with the actual figures, the legislative basis for each charge, and the sequence in which they fall due.
Every property transaction in Zimbabwe carries costs beyond the agreed purchase price. These costs fall on the buyer, the seller, or both, depending on the charge type. This guide sets out the full schedule of taxes, duties, and fees applicable to residential and commercial property transfers in Zimbabwe as of 1 January 2026, including changes introduced by the Finance Act (No. 7) of 2025.
Rates and thresholds are stated in United States dollars unless specified otherwise. All CGT and conveyancing obligations must be cleared before the Deeds Registry will process a transfer.
| Cost Item | Paid By | Rate / Amount |
|---|---|---|
| Stamp Duty | Buyer | 1% to 4% sliding scale |
| Conveyancing Fees | Buyer | ~3% of purchase price (minimum USD 800) |
| Rates Clearance Certificate | Seller | USD 500 to USD 1,500 |
| Capital Gains Tax (CGT) | Seller | 20% of gain (post-Feb 2019 acquisitions) |
| CGT Withholding (upfront) | Conveyancer on behalf of seller | 15% of gross sale price |
| AIDS Levy on CGT | Seller | 3% of base CGT (effective total 20.6%) |
| Estate Agent Commission | Seller | Negotiated, typically 4% to 7% |
| VAT on Developer Transfers | Buyer | 15.5% (effective 1 Jan 2026) |
| Special CGT on Land-Holding Entity Shares | Transferor | 20% of transaction value (effective 1 Jan 2026) |
| IMTT on USD Electronic Payments | Paying party | 2% of transaction value |
| SI 76 Deed Digitisation | Deed holder | Approximately USD 200 |
Stamp duty is levied on the transfer of immovable property and is paid by the buyer. The rate follows a sliding scale based on the purchase price.
| Purchase Price Band | Stamp Duty Rate |
|---|---|
| Up to USD 5,000 | 1% |
| USD 5,001 to USD 20,000 | 2% |
| USD 20,001 to USD 100,000 | 3% |
| Above USD 100,000 | 4% |
Stamp duty is calculated on the purchase price or the assessed value of the property, whichever is greater. It is payable before the Deeds Office will process registration.
Conveyancing fees are paid to the registered conveyancer who handles the transfer documentation, prepares the Deed of Transfer, and lodges the transaction with the Deeds Registry. Rates are set by the Law Society of Zimbabwe and are calculated on the purchase price or the assessed market value, whichever is greater.
The current tariff is approximately 3% of the purchase price, subject to a minimum fee of USD 800. For high-value transactions, the effective percentage is lower due to progressive fee structuring across the tariff schedule. Conveyancing fees are subject to VAT at 15.5%.
The seller is required to obtain a Rates Clearance Certificate from the relevant local authority confirming that all outstanding municipal rates, levies, and service charges have been settled. The Deeds Registry will not process a transfer without this certificate. While the obligation to obtain the certificate rests with the seller, the cost of clearing arrears falls practically on the seller and ranges from USD 500 to USD 1,500 depending on the property and how current rates have been maintained.
CGT is levied on the profit realised from the disposal of immovable property. It is administered by ZIMRA under the Capital Gains Tax Act [Chapter 23:01] and must be settled before the Deeds Registry will register a transfer.
The applicable rate depends on when the property was originally acquired.
| Acquisition Date | CGT Basis | Effective Rate |
|---|---|---|
| Before 1 February 2009 | 5% of capital gain (no deductions) | Effectively 5% on gross sale price due to currency distortion |
| 1 February 2009 to 22 February 2019 | 5% of capital gain (no deductions) | 5% of gross sale price |
| After 22 February 2019 | 20% of actual capital gain | 20% of (sale price minus allowable cost base) |
A 3% AIDS Levy applies on top of the base CGT rate, bringing the effective rate for post-2019 acquisitions to 20.6% on the taxable gain.
Withholding Mechanism
The conveyancer is required to withhold 15% of the gross sale price and remit it to ZIMRA before transfer proceeds. This withholding is provisional, not a final tax. When the seller files their annual tax return, the actual CGT liability is calculated at the applicable rate. If the 15% withheld exceeds the actual CGT payable, the seller claims a refund from ZIMRA. If the actual CGT exceeds the 15% withheld, the seller pays the shortfall.
Allowable Deductions from the Capital Gain
The taxable capital gain may be reduced by the original acquisition cost adjusted for inflation (where applicable), the cost of capital improvements made to the property (additions, alterations, or structural enhancements that are not deductible as income tax expenses), and legitimate costs of disposal including legal fees directly attributable to the sale.
CGT Clearance Certificate (CGT5)
ZIMRA issues a CGT5 Certificate after the tax has been assessed and paid. The Deeds Registry requires the CGT5 before processing the transfer. Delays in CGT assessment or payment directly delay the transfer timeline.
The following disposals are exempt from CGT under Section 10 of the Capital Gains Tax Act, as in force from 1 January 2026.
A seller's principal private residence is exempt if the property has been owned and occupied as the primary residence for at least two continuous years immediately before the date of sale, and the gain falls within the prescribed threshold. Only one property qualifies as a principal private residence at any given time.
Transfers between married spouses attract roll-over relief and no CGT is payable. Transfers on death to estates or named heirs may also attract roll-over relief depending on the structure. Transfers to the Government of Zimbabwe are exempt. Gains by ZIDA-licensed foreign investors from property forming part of their licensed investment are exempt under Section 10 of the Act.
From 1 January 2026, the Finance Act (No. 7) of 2025 added a further exemption for proceeds from the disposal of shares or marketable securities in state-owned or state-controlled companies to private entities specified by the Minister by Statutory Instrument. This exemption has no bearing on private property transactions.
Estate agent commissions are negotiated between the seller and the agent and are not regulated by a statutory tariff. The prevailing market range in Zimbabwe is 5% to 7% of the sale price, with higher rates sometimes applied to lower-value properties. Commission is payable at transfer or on terms agreed in the mandate. Only agents registered with the Estate Agents Council of Zimbabwe (EAC) are legally permitted to earn commission on property transactions.
When a registered property developer sells a property they have developed, the transaction is subject to VAT rather than stamp duty. The buyer pays VAT. Stamp duty does not apply to the same transaction.
The VAT rate from 1 January 2026 is 15.5%, increased from 15% by Section 34 of the Finance Act (No. 7) of 2025, gazetted 29 December 2025.
VAT applies where the developer is a VAT-registered taxpayer and is selling land or property as part of their development trade. This covers sectional title units in a new development, residential stands in a new estate, and commercial properties built for sale. It does not cover private individuals reselling property they previously purchased from a developer.
The buyer of a new development unit must confirm with the conveyancer whether the purchase price is VAT-inclusive or VAT-exclusive before accepting a price. A developer quoting USD 300,000 exclusive of VAT means the total cost to the buyer is USD 346,500 at the 2026 rate. A developer quoting inclusive of VAT means the USD 300,000 is the all-in figure.
Conveyancing fees still apply to developer transfers and are paid by the buyer in addition to VAT.
The Going Concern Zero-Rating Change (effective 1 January 2026)
Prior to 1 January 2026, certain property or business transfers structured as going concern disposals could qualify for zero-rated VAT treatment, avoiding the 15% (now 15.5%) VAT charge. Section 37 of the Finance Act (No. 7) of 2025 repealed and substituted the relevant paragraph of Section 10(1)(e) of the VAT Act. The zero-rating of going concern transfers is now restricted almost entirely to transactions involving the Public Service Pension Fund. Transfers of property or development businesses as going concerns to any other private entity, including SPVs, property companies, or funds, now attract VAT at the standard rate of 15.5%. This change affects corporate acquisition structures and development portfolio restructurings concluded from 1 January 2026 onward.
The Finance Act (No. 7) of 2025 inserted Section 30C into the Capital Gains Tax Act [Chapter 23:01], effective from the year of assessment beginning 1 January 2026. This is the most significant structural change to Zimbabwe's property tax framework in the current cycle.
What it closes
Previously, a seller who owned property through a company could transfer that property by selling the shares of the company rather than transferring the property directly. A share sale does not trigger a transfer at the Deeds Registry, so stamp duty, deeds transfer fees, and the standard CGT process were bypassed. The buyer acquired control of the property by owning the company that owned it.
What Section 30C imposes
A Special Capital Gains Tax of 20% of the value of the transaction is now charged on any transfer of shares or interests in a land-holding entity, where a land-holding entity is defined as any company, partnership, trust, or other entity that holds title to land or immovable property in Zimbabwe at the date of the transfer.
The tax applies regardless of where the transfer is concluded. Transactions executed outside Zimbabwe, including offshore share sales in holding structures where one of the subsidiary entities owns Zimbabwean land, fall within the scope of Section 30C.
The definition of "share or interest" includes shares, stakes, rights, and any other interest in a land-holding entity. The definition of "land-holding entity" captures locally incorporated companies, foreign-incorporated companies, locally incorporated subsidiaries of foreign holding companies, and any other entity capable under the laws of its domicile of holding title to land.
Payment deadline
The Special CGT under Section 30C is due and payable no later than 30 days after the date when the transfer of shares or interests occurs. The date of transfer is the date when an entry is made in the entity's share register, or any other date that constitutes definitive proof of transfer under applicable law.
Payment must be made in United States dollars or the equivalent in foreign currency at the international cross rate prevailing at the time of transfer.
Title validity
If ownership of shares or interests in a land-holding entity is disputed in Zimbabwe courts, title is not considered valid unless the claimant provides a tax clearance certificate confirming that Special CGT under Section 30C has been paid for the relevant transaction.
Practical consequence for buyers and sellers
Any buyer being offered a property transaction structured as a share sale in a company should obtain independent tax advice on Section 30C liability before proceeding. Any seller who intended to use a share transfer structure to reduce transfer cost exposure must now account for a 20% Special CGT charge in their net proceeds calculation, payable within 30 days of transfer.
The Intermediated Money Transfer Tax (IMTT) applies to electronic money transfers and is relevant to property transactions settled by bank transfer.
| Payment Currency | IMTT Rate (2026) |
|---|---|
| United States Dollars (USD) | 2% (unchanged) |
| Zimbabwe Gold (ZiG) | 1.5% (reduced from 2% in 2026) |
IMTT is payable on the transaction value at the point of electronic transfer. For a USD 350,000 property purchase settled by bank transfer, IMTT payable by the transferring party is USD 7,000. IMTT is now tax-deductible following the Finance Act (No. 7) of 2025 amendments.
Statutory Instrument 76 of 2025, gazetted 18 July 2025, requires all holders of paper title deeds to submit their original deeds for validation and digitisation under the Digital Land Administration Platform by 18 July 2027. The cost for this process is approximately USD 200, excluding VAT and administrative disbursements, and can be handled by a conveyancer with a valid power of attorney. Buyers completing transfers between now and the deadline should confirm in the sale agreement which party is responsible for the digitisation cost and compliance timeline.
This example assumes a standard residential property purchased by the seller after 22 February 2019 at an original cost of USD 220,000, now selling at USD 350,000. It excludes agent commission variations and assumes the seller's rates are current.
Buyer pays:
| Item | Calculation | Amount |
|---|---|---|
| Stamp Duty | 4% of USD 350,000 | USD 14,000 |
| Conveyancing Fees | ~3% of USD 350,000 | USD 10,500 |
| VAT on conveyancing | 15.5% of USD 10,500 | USD 1,628 |
| IMTT on transfer | 2% of USD 350,000 | USD 7,000 |
| Buyer's total additional cost | USD 33,128 | |
| Total cash required | USD 383,128 |
Seller receives (approximate):
| Item | Calculation | Amount |
|---|---|---|
| Gross sale price | USD 350,000 | |
| CGT withholding (upfront) | 15% of USD 350,000 | (USD 52,500) |
| Actual CGT liability | 20% of USD 130,000 gain | USD 26,000 |
| AIDS Levy | 3% of USD 26,000 | USD 780 |
| CGT refund from ZIMRA | USD 52,500 minus USD 26,780 | USD 25,720 (refund claimed on return) |
| Rates Clearance cost | Varies | (USD 500 to USD 1,500) |
| Agent commission | 5% of USD 350,000 (example) | (USD 17,500) |
| Approximate net proceeds | After all deductions, before refund | USD 279,500 to USD 280,500 |
| Net after ZIMRA refund | Including the CGT refund | USD 305,220 |
Note: The CGT refund from ZIMRA is not received at the point of transfer. It is claimed through the annual tax return process. Sellers should not plan their post-transfer cash flow around immediate receipt of the refund.
This example covers a buyer purchasing a unit from a VAT-registered developer at a quoted price of USD 350,000 exclusive of VAT.
Buyer pays:
| Item | Calculation | Amount |
|---|---|---|
| Property price (ex-VAT) | USD 350,000 | |
| VAT (15.5%) | 15.5% of USD 350,000 | USD 54,250 |
| Conveyancing Fees | ~3% of USD 350,000 | USD 10,500 |
| VAT on conveyancing | 15.5% of USD 10,500 | USD 1,628 |
| IMTT on transfer | 2% of USD 350,000 | USD 7,000 |
| Total cash required | USD 423,378 |
Stamp duty does not apply on this transaction type. The seller (developer) does not pay CGT on development stock sold in the ordinary course of trade.
Buyers must confirm whether a developer's advertised price is VAT-inclusive or VAT-exclusive before signing. The difference on a USD 350,000 unit is USD 54,250.
Capital Gains Tax rates, withholding mechanism, exemptions, and CGT1 Form obligations : Capital Gains Tax Act [Chapter 23:01] as amended, and ZIMRA administrative guidance.
Section 30C: the full text of the Finance Act (No. 7) of 2025, as analysed by Muvingi and Mugadza Legal Practitioners (Rufaro R. Mugadza, January 2026).
VAT rate increase from 15% to 15.5% effective 1 January 2026: Section 34 of the Finance Act (No. 7) of 2025, gazetted 29 December 2025.
VAT going concern zero-rating restriction: Muvingi and Mugadza Legal Practitioners, Nobert M. Phiri, January 2026.
Stamp duty rates and VAT on developer-led property transfers: DLA Piper REALWORLD Zimbabwe country module, Tax on Acquisitions.
Conveyancing fee tariffs are based on the Law Society of Zimbabwe (Conveyancing Fees) By-laws, Statutory Instrument 24 of 2013 and subsequent amendments. The 2025 tariff floor of USD 800 is consistent with market reporting from property.co.zw and registercompany.co.zw.
IMTT rates: Section 22G of the Finance Act [Chapter 23:04] as amended by Finance Act (No. 7) of 2025, confirmed by the 2026 National Budget statement by Minister Mthuli Ncube.
SI 76 of 2025 digitisation requirement and USD 200 approximate cost: Deeds Registries (General) Regulations, 2025, gazetted 18 July 2025.
AIDS Levy rate is verified against ZIMRA tax tables.
CGT clearance certificate (CGT5) requirement before Deeds Registry registration: ZIMRA administrative practice.
