Malawi Rental Income Guide 2026

Overview — Rental Income Tax in Malawi

Rental income from letting or leasing of immovable property (land and buildings) is chargeable to income tax in Malawi. The tax treatment depends on the type of landlord. For individuals, rental income is aggregated with all other income and taxed under the progressive PAYE brackets. For companies, rental income is included in the corporate tax return. Landlords may claim deductions for expenses incurred wholly and exclusively in generating the rental income. The amount of rent received in the tax year (July to June) is assessable.

Individuals — Progressive PAYE Rates

For individual landlords, rental income is added to other income (such as salary or business income) and taxed at progressive rates. This means rental income may push a taxpayer into a higher bracket. The first MWK 1,500,000 of total annual income is tax-free. The personal relief of MWK 300,000 is also available. Landlords should declare rental income in their annual tax return and pay any tax due after the tax year end.

Allowable Deductions

Landlords may deduct expenses incurred wholly and exclusively in earning the rental income. Deductible expenses include:

• Repairs & maintenance — not capital improvements
• Property management fees — paid to licensed agents
• Insurance premiums — building and fire insurance
• Mortgage interest — interest on loans used to acquire or improve the property
• Agency & legal fees — for tenant acquisition and lease agreements
• Council rates — paid to local authorities

Capital improvements (improving the property beyond its original condition) are not deductible but may be added to the cost base for capital gains purposes on eventual sale.

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. 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.

FAQs

Is rental income subject to withholding tax?

Malawi does not have a specific withholding tax on rental income for individuals. The tenant is generally not required to withhold tax. The landlord declares rental income in their annual return and pays the tax directly.

What if I receive advance rent for multiple years?

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.

Are short-term lettings (Airbnb) taxed differently?

Short-term lettings are taxed the same as long-term rentals. The income is added to other income and taxed at progressive rates.

Disclaimer

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