Bulawayo City Centre

Historically, investors bought the shares of a property-holding company to bypass the 3% Deeds Office Stamp Duty. As of January 2026, the government aggressively shut down this loophole. Under the new Section 30C of the Finance Act, ZIMRA imposes a punitive 20% Special Capital Gains Tax (SCGT) on the transfer of shares in any "land-holding entity."

This massive tax applies whether the transaction happens in Zimbabwe or offshore. Before attempting a corporate buyout to save on conveyancing fees, you must instruct your corporate lawyer to calculate whether a direct asset transfer (paying standard Stamp Duty and regular CGT) or a share acquisition is actually more tax-efficient under the 2026 fiscal regime.

In Zimbabwe, the law of huur gaat voor koop dictates that you legally inherit every existing tenant and the exact terms of their current lease. You cannot evict them simply because you bought the building. The primary threat here is the Currency Trap.

If the previous owner locked in multi-year leases without strict, legally enforceable USD-denomination clauses or aggressive inflation-escalation metrics, you will inherit a building generating depreciating local currency (ZiG). Never submit an offer on a commercial asset until your lawyer audits the rent roll to confirm every tenant is legally bound to hard USD payments and that there are no unfulfilled "tenant improvement" financial obligations you are inheriting.

Harare commercial sellers routinely inflate their Capitalization Rates (Cap Rates) by advertising "potential" or "projected" income. You must value the asset strictly on audited, historical USD cash collected.

Furthermore, under new 2026 tax regulations, if your building houses SME or informal tenants liable for presumptive tax, landlords are now legally required to withhold and remit a 10% rental tax to ZIMRA on every dollar collected. When calculating your true net yield, you must aggressively deduct this tax burden, alongside the massive operational costs of running diesel generators and bulk water deliveries. If a seller refuses to provide 24 months of audited bank statements proving actual rent collection, their valuation is fiction.

A commercial property in Zimbabwe is only as valuable as its utility sovereignty. A commercial building without grid independence is an empty building. Your technical inspection must bypass aesthetics and audit the capital infrastructure: What is the exact KVA output and lifespan of the generators? Are the commercial solar lithium battery banks degraded?

Crucially, you must demand the Harare City Council Fire Safety Certificate. The council is aggressively targeting non-compliant commercial buildings. Retrofitting a multi-story CBD or industrial building with compliant fire-suppression systems can wipe out two years of rental yield. Deduct any compliance failures directly from your acquisition offer.

Foreign entities can freely acquire commercial property in Zimbabwe, but the danger lies in capital extraction. If you bypass formal Reserve Bank of Zimbabwe (RBZ) protocols—such as paying the seller offshore without registering the transaction locally—you will permanently trap your capital.

Every dollar used for the acquisition must enter Zimbabwe through an authorized Nostro banking channel and be formally registered with the Zimbabwe Investment and Development Agency (ZIDA). Without ZIDA certification and RBZ exchange control approval at the point of entry, you will be legally barred from repatriating your rental yields or future liquidation proceeds out of the country.

The most secure form of property ownership in Zimbabwe is a registered Deed of Transfer (or Deed of Grant) recorded at the Deeds Office. That said, the rules around title deeds are currently evolving. Under Statutory Instrument (SI) 76 of 2025, all traditional paper title deeds must undergo compulsory digital validation. Before you buy, your conveyancer should now verify that the seller’s paper deed has been validated or converted to a secure digital deed, to guard against forged-document fraud.

Understanding cession: In many new cluster developments and high-density stands, the property is sold under a “cession” arrangement. Here, the developer or local council holds the master Title Deed, and you hold a contractual right to the property rather than direct title. Because you don’t yet own the land, cession is widely seen as riskier than a registered title deed — and in some cases it can be. For example, if the developer becomes insolvent or has used the master deed as loan collateral, your interest could be exposed.

However, not every cession transaction is high-risk, and they don’t need to be ruled out. Many legitimate, well-run developments use cession structures while subdivision and individual title issuance are being finalised. The key is to apply the same level of due diligence you would in a standard title deed purchase. Have a conveyancer review the developer’s master title, confirm that the necessary subdivision permits are in place, and check that the master deed is free of unexpected encumbrances. With those steps, a cession purchase can be just as considered and secure as any other property transaction.

Under the Regional, Town and Country Planning Act, a property’s zoning dictates its maximum yield, but the real market value is driven by commercial conversion potential and densification.

Commercial Conversions: Suburbs bordering the CBD (such as Eastlea, Milton Park, and Belvedere) command massive premiums because residential properties are being converted to commercial offices. However, operating a business on a residentially zoned stand without applying for "Special Consent" or a formal rezoning permit from the City of Harare is illegal. The council can issue enforcement orders forcing you to shut down. Do not pay a "commercial premium" for a residential property unless the agent can provide the approved commercial use permit.

Cluster Densification: In northern suburbs (Borrowdale, Highlands), large low-density stands are being bought for cluster housing. A seller cannot simply carve off a piece of their garden and sell it to you. A legal subdivision requires a Dispensation Certificate and a Certificate of Registered Title. If you buy an "unapproved subdivision," you will not be able to get a Title Deed or build legally.