Property Tax in Guinea-Bissau

Property taxation in Guinea-Bissau includes taxes on property acquisition, ownership, and disposal. This guide covers the various property-related taxes and duties that property owners and investors need to understand.

Property Acquisition Taxes

Registration Duties

When purchasing property in Guinea-Bissau, buyers are required to pay registration duties (droits d'enregistrement). These are calculated on the higher of the purchase price or the market value assessed by the tax authorities.

• Standard Rate: ~5% of property value
• Agricultural Land: 2% of purchase price
• Social Housing: 2% for qualifying low-cost housing

VAT on Property

The sale of new commercial properties is subject to VAT at 15%. Residential property sales are generally exempt from VAT. The sale of existing properties (resale) is not subject to VAT.

Notary Fees

Notary fees for property transactions are typically 1–2% of the purchase price and are shared between buyer and seller as agreed.

Annual Property Taxes

Property Tax (Taxe Foncière)

An annual property tax is levied on built-up properties in urban areas:

• Rate: 5% of the cadastral rental value
• Exemptions: Government buildings, diplomatic missions, religious buildings, properties under construction (2-year exemption)

Land Tax (Taxe sur le Foncier Non Bâti)

Unimproved land is subject to a land tax at a rate of 2% of the cadastral value.

Municipal Tax

Municipalities may levy an additional tax of up to 0.5% of property value for local services.

Property Disposal Taxes

Capital Gains on Property

Gains from the sale of property are subject to tax as follows:

• Individuals: A 15% rate applies on property gains
• Non-Residents: An additional 5% surcharge applies
• Primary Residence: Exempt if proceeds are reinvested in another primary residence within 24 months

Rental Income Taxation

Rental income from property is taxable as follows:

• Individuals: Net rental income taxed at progressive PIT rates (0–20%)
• Corporations: Included in business income, taxed at 25%
• Non-Residents: 10% withholding tax on gross rental income

Tax Planning for Property Investors

• Hold Property Through a Company: May provide tax advantages for corporate investors
• Depreciation Deduction: Buildings can be depreciated at 2% per year for tax purposes
• Mortgage Interest Deduction: Interest on property loans is deductible against rental income
• Joint Ownership: Consider ownership structure to optimize tax outcomes