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Rwanda Capital Gains Tax Guide 2026

Rwanda imposes capital gains tax (CGT) on gains from the disposal of property at 30% if the property is held for less than 5 years. Gains on securities (shares, bonds) are exempt from CGT. The principal private residence is also exempt. Property transactions also attract a transfer fee of 6% and registration fee of 1%.

Overview — CGT in Rwanda

Capital gains tax in Rwanda is governed by the Income Tax Law. A chargeable gain arises when a person disposes of a chargeable asset. The tax applies to individuals and companies. Resident individuals and companies are taxed on worldwide chargeable gains; non-residents are taxed only on gains from Rwandan assets. The rate depends on the type of asset and the holding period. Rwanda has a favourable regime for securities, with no CGT on shares, bonds, or other financial instruments.

CGT on Property — 30% (Held Less Than 5 Years)

Gains from the disposal of real property are subject to CGT at 30% if the property is held for less than 5 years. The chargeable gain is calculated as: Sale price minus (Acquisition cost + Improvement costs + Transaction costs). If the property is held for 5 years or more, the gain may be reduced or exempted. The principal private residence is exempt from CGT. Property held for business purposes and subsequently sold is subject to the standard CIT rate rather than the 30% CGT.

No CGT on Securities

Rwanda does not impose capital gains tax on the disposal of securities including shares, bonds, and other financial instruments traded on the Rwanda Stock Exchange (RSE) or elsewhere. This exemption applies to both residents and non-residents. The absence of CGT on securities is designed to encourage investment in the Rwandan capital market. Gains from the disposal of government securities are also exempt. This favourable treatment makes Rwanda an attractive jurisdiction for portfolio investment.

Principal Residence Exemption

Gain from the disposal of an individual's principal private residence is exempt from CGT, provided the property has been occupied as the main residence throughout the period of ownership. Partial relief is available where a property has been used partly as a residence and partly for business. Additional residences (second homes, investment properties) are chargeable unless held for 5 years or more.

Property Transfer Costs

In addition to CGT, property transactions in Rwanda attract the following costs:

  • Transfer fee — 6% of the property value (payable by the buyer)
  • Registration fee — 1% of the property value (payable to the Rwanda Land Management and Use Authority)
  • Stamp duty — 1% of the property value
  • Legal fees — typically 2–5% of the property value
  • Valuation fees — negotiable, typically 0.5% of property value

Total transaction costs for buying property in Rwanda typically range from 8% to 12% of the purchase price.

FAQs

How do I calculate my chargeable gain on property?

The chargeable gain is the difference between the sale price and the acquisition cost plus allowable improvement costs. Example: Buy land for RWF 50M, build for RWF 30M, sell for RWF 100M. Gain = 100M − 50M − 30M = RWF 20M. CGT at 30% = RWF 6M.

Can I offset capital losses against capital gains?

Yes, capital losses in a tax year may be offset against capital gains in the same year. Unrelieved losses may be carried forward but cannot be offset against other income.

What assets are exempt from CGT?

Principal residence, shares and securities, government bonds, assets held for 5+ years, and assets transferred on death.

Disclaimer

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

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