Sierra Leone Rental Income Guide 2026
Rental income from letting or leasing of immovable property is chargeable to income tax in Sierra Leone. Rental income is included in the landlord's total income and taxed under the progressive PAYE rates for individuals or CIT rates for companies. Allowable deductions for expenses can reduce the taxable rental income.
Overview — Rental Income Tax in Sierra Leone
Rental income from letting or leasing of immovable property (land and buildings) is chargeable to income tax in Sierra Leone. The tax treatment depends on the type of landlord. For individuals, rental income is included in total income and taxed under the progressive PAYE rates (0–30%). For companies, rental income is included in chargeable profits and taxed at the CIT rate (25% standard, 10% agricultural). Landlords may deduct allowable expenses incurred in generating the rental income.
Allowable Deductions
Landlords may deduct the following expenses from rental income:
- 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
- Property rates — local government rates
- Agency & legal fees — for tenant acquisition and lease agreements
To claim deductions, the landlord must maintain proper records and file an annual rental income return with NRA.
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. Expenses incurred during vacant periods may be deducted. Short-term letting (e.g., holiday rentals) is also subject to rental income tax.
FAQs
Who is responsible for declaring rental income?
The landlord is responsible for declaring rental income in their annual tax return. Proper records of rent received and expenses incurred must be maintained.
What if I rent my property through an agency?
The rental income must still be declared by the landlord. The agency's management fees are deductible expenses.
Are advance rent payments taxable in one year?
Yes, rental income is taxable in the year it is received, regardless of the period it covers.
Disclaimer
This guide provides general information about Sierra Leone rental income tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Sierra Leone tax advisor or the National Revenue Authority for advice specific to your situation. InvestmentKit does not provide tax advice.