Unlike the UK and other jurisdictions where stamp duty payment kicks in only after a certain property price threshold, the Ghana Revenue Authority (GRA) charges 1% across board on all property purchases, irrespective of the property price (even if it's GHs1 or $1).
We absorb this payment for all buyers, and this can be on top of mortgage closing cost assistance & 100% LTV Mortgages.
WHAT IS STAMP DUTY?
The stamp duty is not a tax on transactions but on documents brought into being for the purposes of recording transactions. It is therefore a tax on documents or specific instruments that have legal effect, such as the following:
- Insurance policies.
- Awards of cost in matters of dispute.
- Conveyances or transfers on the sale of any property.
- Appointment letters of new trustees.
- Natural resource leases or licences (e.g. mining, timber).
- Agreements or memoranda of agreement.
- Bills of exchange (e.g. issue of cheques).
- Bills of lading.
Stamp Duty is a tax you have to pay when buying a property or a piece of land. This tax applies to both freehold and leasehold properties. It also applies whether you’re buying outright or with a mortgage. This is a non-progressive tax levied as a percentage of the property's purchase price.
BENEFITS OF PAYING STAMP DUTY
The payment of proper Stamp duty on instruments makes them legal. Such instruments get evidential value and can be admitted as evidence in a court of law. The Stamp duty is governed by the Stamp Duty Act, 2005 (Act 689) as amended.
Under the Stamp Duty Act, all security documents are required to be duly and properly stamped to render them admissible in evidence and enforceable in the courts of Ghana. An unstamped or insufficiently stamped document will therefore not be admitted into evidence in court and a person cannot rely on it to make his/her case.
STAMP DUTY RATE?
Ad valorem tax which ranges between 0.25% - 1% of the value of instruments/Document.
HOW MUCH IS STAMP DUTY?
There are several rate bands for Stamp Duty, but it's 1% for property transactions. The tax is calculated on the part of the property purchase price.
EXAMPLE
For example, if you buy a house for GHs1,000,000, the Stamp Duty you owe is calculated like this:
1% on the amount GHs1,000,000 = GHs10,000.
WHO PAYS IT?
It is the financial responsibility of the property buyer or receiver who pays this stamp duty tax, and not the seller - However, DCANS Properties Ghana pays this tax on behalf of all property buyers with us (more on that below).
HOW LONG DO YOU HAVE TO PAY STAMP DUTY?
You have 14 days to submit a Stamp Duty return and pay any tax due, after signing the Sales & Purchase Agreement. If you don’t submit a return and pay the tax within 14 days, GRA might charge you penalties and interest.
HOW TO PAY STAMP DUTY?
You will need to submit a Stamp Duty return, even if you’re not paying any SDLT. Usually, your solicitor will submit your return, although you can do it yourself. Either way, you’re responsible for making sure it’s all submitted on time.
OFFENSES AND PENALTIES
Section 40 to 44 of the Stamp Duty Act 2005 (Act 689) specifies activities and actions considered an offence under the Act and the accompanying consequences.
GENERAL STAMP DUTY EXEMPTIONS (RELA ESTATE RELATED)
- Transfers made as part of divorce settlement or arrangement.
- Transfers made upon gifts inter vivos (between the living) from one spouse to another or from a parent to a child or from a child to a parent.
- Transfers and covenants to charities.
- Transfers of loan capital.
- All bankruptcy or insolvency documents.
- An agreement, conveyance or other instrument relating to property of a company during winding up.
- Transfer of property under will or other instruments relating to testamentary dispositions.
- Probates, letters of administration and vesting assents.
- Insurance policy and any declaration of any use or trust concerning a life policy, or property representing, or benefits arising under a life policy.
- Instruments for the sale, transfer, or other disposition, either absolutely or by way of mortgage or otherwise, of a ship or vessel or of a part interest, share or property in a ship or vessel.
- (a) A conveyance, transfer, lease or other instrument transferring land or an interest in and from the State Housing Company Ltd. to person.
(b) A mortgage of land where the mortgagee is the State Housing Company Ltd.
(c) A conveyance, transfer, lease or other instrument transferring land or an interest in land from a person engaged in the business of construction of residential accommodation for sale or letting to any other person if the vendor has registered that business with the Commissioner under a law for the time being in force.
DCANS PROPERTIES ASSISTANCE
We take up all stamp duty costs and filing responsibilities on your behalf when buying from us. With our property priced within GHs1,000,000 and GHs85,000,000, the expected stamp duty we expect to pay for on behalf our buyers is within GHs10,000 and GHs850,000.
OTHER AVAILABLE BUYER INCENTIVES
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