I want to talk about what it costs when you buy or sell land and buildings. We need to look at three different cases. First, property with title deeds, which happens most often. Second, buying shares in a company that already holds property rights. Third, property held through something called cession—that means no title deed exists yet. Let me explain each one clearly and simply.
When you buy a titled property, you pay the seller whatever price you both agree on. Make sure you know if that price includes all taxes and charges beforehand. You might pay an agreement fee to the lawyer who writes up your contract. Either the buyer or seller can pay this fee, depending on what you decide together. Your contract might come from a lawyer or a real estate company.
Sellers who use real estate agents pay those agents five percent of the selling price. The government also takes money from sellers who make a profit on their property. This tax, called Capital Gains Tax, goes straight to ZIMRA. Some people don't have to pay this tax because they qualify for special exceptions. The law decides who doesn't have to pay based on specific rules.
Buyers pay legal fees to transfer the property into their name. These fees go to specialized lawyers who handle the paperwork with ZIMRA and the Deeds Registry. The Law Society of Zimbabwe sets these fees at three percent of your property value. Buyers also pay stamp duty directly to the Deeds Registry. This tax ranges between one percent and four percent based on how expensive your property is.
Some people register their property under a company name. When they want to sell, they might sell all shares in that company instead of transferring the actual property. This creates indirect ownership—you control the company that controls the property. The basic costs remain similar but work differently. You still negotiate a purchase price and possibly pay agreement fees.
Selling company shares means the seller pays Capital Gains Tax on share values, not on property values. ZIMRA might ask for special valuations to figure out the correct tax amount. The buyer then pays share transfer costs to update company paperwork. This includes changing share certificates and updating director information at the Registrar of Companies. Buyers and sellers must agree on who pays these extra costs.
Properties without title deeds work through cession. You might buy these from land developers or local councils. The basic purchase price and agreement fees still apply, just like other properties. Real estate agents still earn their five percent commission when they help sell these properties. Different tax rules apply depending on who sells the property.
Land developers selling cession property must charge VAT instead of Capital Gains Tax. Buyers pay this VAT along with the purchase price. Buyers also pay cession fees in two parts. One part goes to the land developer for changing records in their books. Another part pays lawyers who help secure your cession rights properly. These replace the normal transfer costs seen with titled properties.
Always learn about all these costs before you start buying or selling property. Each situation brings different expenses. Being prepared helps you make better decisions about property deals. Smart buyers and sellers never find themselves surprised by unexpected costs after signing contracts. Property transactions involve many payments beyond just the purchase price itself.
When you buy a titled property, you pay the seller whatever price you both agree on. Make sure you know if that price includes all taxes and charges beforehand. You might pay an agreement fee to the lawyer who writes up your contract. Either the buyer or seller can pay this fee, depending on what you decide together. Your contract might come from a lawyer or a real estate company.
Sellers who use real estate agents pay those agents five percent of the selling price. The government also takes money from sellers who make a profit on their property. This tax, called Capital Gains Tax, goes straight to ZIMRA. Some people don't have to pay this tax because they qualify for special exceptions. The law decides who doesn't have to pay based on specific rules.
Buyers pay legal fees to transfer the property into their name. These fees go to specialized lawyers who handle the paperwork with ZIMRA and the Deeds Registry. The Law Society of Zimbabwe sets these fees at three percent of your property value. Buyers also pay stamp duty directly to the Deeds Registry. This tax ranges between one percent and four percent based on how expensive your property is.
Some people register their property under a company name. When they want to sell, they might sell all shares in that company instead of transferring the actual property. This creates indirect ownership—you control the company that controls the property. The basic costs remain similar but work differently. You still negotiate a purchase price and possibly pay agreement fees.
Selling company shares means the seller pays Capital Gains Tax on share values, not on property values. ZIMRA might ask for special valuations to figure out the correct tax amount. The buyer then pays share transfer costs to update company paperwork. This includes changing share certificates and updating director information at the Registrar of Companies. Buyers and sellers must agree on who pays these extra costs.
Properties without title deeds work through cession. You might buy these from land developers or local councils. The basic purchase price and agreement fees still apply, just like other properties. Real estate agents still earn their five percent commission when they help sell these properties. Different tax rules apply depending on who sells the property.
Land developers selling cession property must charge VAT instead of Capital Gains Tax. Buyers pay this VAT along with the purchase price. Buyers also pay cession fees in two parts. One part goes to the land developer for changing records in their books. Another part pays lawyers who help secure your cession rights properly. These replace the normal transfer costs seen with titled properties.
Always learn about all these costs before you start buying or selling property. Each situation brings different expenses. Being prepared helps you make better decisions about property deals. Smart buyers and sellers never find themselves surprised by unexpected costs after signing contracts. Property transactions involve many payments beyond just the purchase price itself.
