Papua New Guinea Property Tax Guide 2026

Overview — Property Taxation in PNG

Property taxation in PNG is relatively light compared to many jurisdictions. The main taxes are stamp duty on property transfers and municipal rates. There is no capital gains tax on non-mining property, no annual land tax, and no wealth tax on property holdings. The Internal Revenue Commission (IRC) administers stamp duty, while local governments levy municipal rates. The land tenure system is dominated by customary land ownership, which is not formally taxed. Freehold and leasehold titles (state leases) are the main types of alienated land subject to transaction taxes.

Stamp Duty — 1% to 5% Sliding Scale

Stamp duty is payable on property transfers and is calculated on the consideration or market value of the property, whichever is higher. The rates follow a sliding scale:

• 1% — on the first PGK 100,000 of property value
• 2% — on the next PGK 100,000 (PGK 100,001–200,000)
• 3% — on the next PGK 100,000 (PGK 200,001–300,000)
• 4% — on the next PGK 100,000 (PGK 300,001–400,000)
• 5% — on the amount exceeding PGK 400,000

Stamp duty is paid to IRC at the time of registration of the transfer. The instrument of transfer must be stamped within a specified period. Late stamping attracts penalties. The stamp duty is typically paid by the buyer unless otherwise agreed in the sale contract.

Municipal Property Rates

Municipal (local government) rates are levied annually by city and district authorities on properties within their jurisdiction. The rates are based on the assessed value of the land and buildings. Rates vary by location and property type. In Port Moresby, the National Capital District Commission (NCDC) levies rates based on the improved value of the property. Rates fund local services including waste management, road maintenance, and street lighting. Payment is typically annual, and default attracts penalties and interest.

Registration Fees & Other Costs

In addition to stamp duty, property buyers should account for:

• Land registration fee — nominal fee at the Land Titles Commission
• Legal fees — typically 2–5% of property value
• Valuation fee — for mortgage valuation purposes
• Survey fees — if surveying is required

Total transaction costs for buying property in PNG typically range from 5% to 10% of the purchase price, depending on the complexity of the transaction and legal fees.

Customary Land

Approximately 97% of land in PNG is held under customary ownership, governed by traditional land tenure systems. Customary land cannot be bought or sold freely — it is held by clans or tribes. Transfers of customary land are not subject to stamp duty or formal property taxes. Leasehold interests over customary land (through the Land Groups Incorporation Act) may be structured for development projects. Investors should exercise extreme caution and obtain proper legal advice when dealing with customary land.

FAQs

Do I pay property tax if I own a house but live abroad?

Yes, municipal rates are payable regardless of the owner's residency. Non-resident owners should appoint a local agent to handle rate payments.

How is stamp duty calculated?

Stamp duty is calculated on a sliding scale: 1% on the first PGK 100,000, up to 5% on the portion above PGK 400,000. For a PGK 500,000 property, stamp duty = PGK 1,000 + 2,000 + 3,000 + 4,000 + 5,000 = PGK 15,000.

Are there tax incentives for property developers?

PNG offers some incentives for property development, including accelerated capital allowances and concessions under the Investment Promotion Authority framework.

Disclaimer

This guide provides general information about property taxation in Papua New Guinea for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified PNG property lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax advice.