Burkina Faso Rental Income Guide 2026

Overview — Rental Income Tax in Burkina Faso

Rental income from letting or leasing of immovable property (land and buildings) is chargeable to income tax in Burkina Faso. For individual landlords, net rental income is added to other income and taxed under the progressive IRPP rates (0–35%). For corporate landlords, rental income is included in chargeable profits subject to CIT (27.5% standard). A withholding tax on rent (retenue à la source sur les loyers) is applied when businesses pay rent to landlords. The Direction Générale des Impôts (DGI) administers rental income tax.

Residential Rental Income — IRPP

For individual landlords letting residential property, net rental income is calculated as gross rent received less allowable deductions. The net amount is then added to other income and taxed at the progressive IRPP rates. Allowable deductions include:

• Repairs & maintenance — not capital improvements
• Property management fees
• Insurance premiums — building and fire insurance
• Mortgage interest — interest on loans used to acquire or improve the property
• Land tax (taxe foncière) — paid to DGI
• Agency & legal fees — for tenant acquisition and lease agreements
• Depreciation — on the building cost (not land)

Landlords may also elect for a simplified regime where a standard deduction (typically 30%) is applied to gross rent instead of actual expenses.

Commercial Property Rental

For commercial property (offices, retail space, warehouses), rental income is taxed under the same principles as residential property. Corporate landlords include rental income in their CIT return. A withholding tax of approximately 12.5% applies on rent paid by businesses to individual landlords. The withholding tax is deducted at source by the tenant and remitted to DGI. The landlord receives a withholding tax certificate as proof of tax paid.

Vacant Property Rules

Rental income is only taxable when the property is actually let. There is no deemed rental income for vacant or owner-occupied properties. However, the annual land tax (taxe foncière) continues to apply regardless of occupancy. If a property is let for only part of the year, the rental income for that period is subject to tax. Expenses incurred during vacant periods may be deducted against rental income.

Registration & Filing

Landlords must declare rental income in their annual tax return filed by 30 April for individuals. The return should include gross rent received, allowable deductions, and net rental income. Supporting documentation including lease agreements, receipts for expenses, and withholding tax certificates should be maintained for at least 5 years. Failure to declare rental income may result in penalties and reassessment.

FAQs

Who is responsible for withholding rental tax?

The tenant (lessee) who is a business entity is responsible for withholding the tax at source and remitting it to DGI within the prescribed period. Individual tenants are generally not required to withhold.

What if I rent my property through an agency?

The agency may be designated as the withholding agent. The agency must deduct the WHT before remitting net proceeds to you and issue a withholding tax certificate.

Are advance rent payments taxable in one year?

Yes, rental income is taxable in the year it is received, regardless of the period it covers. If you receive multiple years' rent in a single payment, the full amount is taxable in that year.

Disclaimer

This guide provides general information about Burkinabé rental income tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified tax advisor or the Direction Générale des Impôts for advice specific to your situation. InvestmentKit does not provide tax advice.