One of the most common questions about estate administration in Ghana is: "Do I have to pay tax on what I inherit?" The answer is nuanced — and getting it wrong can create unexpected liabilities.
Estate Duty: The Basics
Ghana does not currently impose a comprehensive estate duty (inheritance tax) in the traditional sense. There is no percentage tax levied on the total value of an estate simply because someone died.
However, there are several taxes and fees that arise during estate administration:
1. Stamp Duty on Property Transfer
When inherited property is transferred to beneficiaries, stamp duty applies:
- For transfers to family members (gifts/inheritance): 0.25% of assessed value
- For transfers that look more like sales: 0.5% of assessed value
On a GHS 500,000 property, this is GHS 1,250 — significant but manageable.
2. Capital Gains Tax on Inherited Property Sold
If you sell inherited property, you pay Capital Gains Tax:
- Individuals: 15% of the capital gain
- Companies: 25% of the capital gain
The capital gain is calculated as: Sale price minus the value of the property at the time of inheritance
Example: You inherit a house valued at GHS 400,000. You sell it 2 years later for GHS 550,000. Your gain is GHS 150,000. CGT = GHS 150,000 × 15% = GHS 22,500.
If you're selling quickly after inheriting, the gain may be small and CGT minimal.
3. Income Tax on Inherited Business or Rental Income
If the estate includes a business or rental properties that continue generating income:
- Business income is subject to income tax
- Rental income is subject to 8% withholding tax (for individuals)
- These obligations continue during estate administration and after transfer to beneficiaries
4. Letters of Administration Fees
These are court fees, not taxes, but they represent a real cost:
- Court filing fees: GHS 500-1,500
- Administration bond: GHS 500-2,000
- Court processing fees: GHS 200-500
5. Estate Administration Costs
- Lawyer fees: GHS 3,000-10,000
- Newspaper publication: GHS 300-500
- Certified copies: GHS 100-300
- Bank processing fees: Variable
Tax-Free Inheritance?
In practice, if the estate consists of:
- Land and property that isn't immediately sold
- Bank accounts (which are simply transferred)
- Pension/SSNIT benefits
...the tax burden is relatively light. The main costs are stamp duty on property transfers and the administrative costs of getting Letters of Administration.
Planning to Minimize Tax
- Write a will — makes estate administration faster and cheaper, reducing overall costs
- Transfer property during your lifetime — lifetime gifts may be structured more tax-efficiently
- Keep property values documented — establishes the base value for future CGT calculations
- Hold property for longer before selling — appreciation over long periods may be offset by inflation
Use our free Estate Administration Guide to understand your full obligations. Read about getting Letters of Administration and writing a valid will.