Ghana changes VAT regime for real estate developers in 2026 — MyJoyOnline
In Ghana, the VAT regime for registered real estate developers changed on January 1, 2026. As MyJoyOnline reports, a buyer’s total costs depend on the type of seller and may include stamp duty, legal services, title registration, a survey inspection, and VAT.
Under the Stamp Duty Act, 2005 (Act 689), the rate is 0.25% for property valued at up to 10,000 Ghanaian cedis, 0.5% for values from 10,000 to 50,000 cedis, and 1% for properties worth more than 50,000 cedis. There is no separate surcharge on this duty for foreign buyers. Stamp duty is paid by the buyer to the Ghana Revenue Authority, and the document must be stamped before a registration application is filed with the Lands Commission.
New VAT regime
According to the publication, the VAT Act, 2025 (Act 1151) abolished the flat-rate scheme under which developers previously paid 5% VAT. A separate law repealed the 1% COVID-19 Health Recovery Levy. Therefore, the previous effective 6% rate for developers no longer applies.
VAT-registered developers have moved to the standard system: the base VAT rate is 15%, with NHIL and GETFund levies of 2.5% each applied in addition. MyJoyOnline notes that the effective tax burden may be about 20%, although the amount for a particular residential property depends on input tax credit and the nature of the transaction. The resale of housing by a private individual is generally VAT-exempt, according to the publication.
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Registration and related costs
To complete registration, the buyer and seller need valid GRA tax identification numbers. Foreign buyers must also provide a passport and a national identity document. Without title registration with the Lands Commission, signing an agreement and making payment do not create protection of the right against third parties, the article says.
Legal services for completing a transaction are estimated at approximately 2–6% of the property’s value, or a fixed amount in uncomplicated cases. A survey inspection of plot boundaries and possible overlaps may cost from 1,000 to 8,000 Ghanaian cedis, according to the estimates cited in the article. For a “clean” private resale, basic associated costs are estimated at 6–8% of the property price, and at 10–12% with valuation, survey work, and repairs.
The publication is labelled as sponsored material by developer Quao Realty. The outlet advises buyers to obtain written confirmation of the VAT regime from the seller and consult Ghanaian tax and legal specialists.
