Ghana Inheritance & Gift Tax Guide 2026

Overview — Inheritance & Gift Taxation

Ghana has a favourable tax regime for wealth transfer: there is no estate duty, no inheritance tax, and no death tax on assets transferred upon death. However, gifts made during the lifetime of the donor are subject to gift tax. The absence of estate duty makes Ghana an attractive jurisdiction for high-net-worth individuals to hold assets, though other tax considerations (such as CGT on eventual disposal by heirs) apply. The tax treatment of gifts and inheritances is governed by the Income Tax Act, 2015 (Act 896) for gift tax, and customary and statutory law for succession. Upon death, there is no deemed disposal of assets for CGT purposes — the heir inherits the deceased's cost base (no uplift to market value).

Gift Tax Rates — 5% to 15%

Ghana imposes gift tax on the donor (the person making the gift) at progressive rates depending on the relationship to the recipient:

• 5% — gifts to a spouse, child, or parent (immediate family)
• 10% — gifts to siblings, grandparents, grandchildren, and other extended family
• 15% — gifts to non-relatives and unrelated persons

Gift tax applies to the market value of the property at the time of the gift. Cash, real estate, shares, vehicles, and other assets are all subject to gift tax. The donor must report the gift and pay the tax within 30 days of the transfer. There is an annual exemption for small gifts: the first GHS 1,000 of total gifts per year to any one recipient is exempt from gift tax. Gifts to charitable organisations are exempt from gift tax if the charity is registered in Ghana.

Gifts vs. Inheritance — No Tax on Death

Unlike lifetime gifts, assets transferred upon death are not subject to gift tax or inheritance tax. The heir receives the asset at the deceased's cost base for tax purposes. This creates a disconnect: it is tax-efficient to hold assets until death rather than gift them during lifetime. However, for assets that may appreciate significantly, the heir will face a higher CGT bill on eventual sale because they inherit the low cost base. Estate planning strategies may involve a mix of lifetime gifting (paying 5-15% gift tax) and testamentary transfers (no tax now, but higher CGT later). Professional advice is recommended for significant estates.

Intestate Succession — PNDCL 111

If a person dies without a will (intestate), the distribution of their estate is governed by the Intestate Succession Law, 1985 (PNDCL 111). The estate is divided as follows:

• Spouse and children — spouse receives 1/3, children receive 1/3, and the customary family receives 1/3
• Spouse, no children — spouse receives 1/2, the remaining 1/2 goes to the customary family
• No spouse, children survive — children receive 3/4, customary family receives 1/4
• No spouse, no children — entire estate goes to the customary family

"Customary family" refers to the deceased's parents, siblings, and other relatives under customary law. The law attempts to balance the nuclear family with the extended family under Ghanaian tradition. The law is widely considered outdated and there have been repeated calls for reform.

Wills & Probate

Having a valid will is the most effective way to ensure assets pass according to the deceased's wishes and to avoid the rigid intestacy formula. A will must be in writing, signed by the testator in the presence of two witnesses who are not beneficiaries. The will should appoint an executor to administer the estate. Probate is the legal process of recognising the will and granting the executor authority to distribute assets. The process involves applying to the High Court (Probate Division) with the will, death certificate, and inventory of assets. Probate fees are typically 0.5–2% of the estate value. The process can take 3–12 months in Ghana. Foreign nationals with assets in Ghana should have a separate Ghanaian will covering their Ghanaian assets to avoid delays.

FAQs

Do I need to pay tax on inherited property if I sell it?

Yes, if you sell inherited property, CGT at 15% applies on the gain (selling price minus the deceased's original cost base — no step-up in basis). Holding the property for a long period may result in a significant gain. Consider the principal residence exemption if you occupy the property as your main home.

Is there a way to avoid gift tax when transferring assets to family?

You can use the annual exemption of GHS 1,000 per recipient per year. For larger transfers, structured sales at market value (rather than gifts) may be considered but may trigger CGT. Estate planning trusts are also used but have ongoing compliance costs.

Does Ghana recognise foreign wills?

Foreign wills may be recognised in Ghana but must go through the probate process in Ghana to be effective for Ghanaian assets. It is generally advisable to execute a separate Ghanaian will for assets located in Ghana.

Disclaimer

This guide provides general information about Ghanaian inheritance and gift tax for the 2026 tax year. Succession law is complex and intersects with customary law. Always consult with a qualified Ghanaian lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax or legal advice.