Many Ghanaian families informally gift land — a parent gives a plot to a child, a grandparent allocates land to grandchildren, siblings divide inherited land. Without proper legal documentation, these informal gifts create inheritance disputes, fraud vulnerabilities, and title problems for generations. Here is how to do it correctly.
Is an Informal Land Gift Valid?
Under customary law, a gift of land accompanied by the appropriate customary rites may be valid. However, for modern legal purposes — registering title, obtaining a mortgage, selling — an informal gift is insufficient. The recipient needs documented, registered title.
The Deed of Gift
The proper legal instrument for gifting land in Ghana is a Deed of Gift — a formal legal document stating:
- The identity of the donor (person giving the land)
- The identity of the donee (person receiving the land)
- The relationship between them (if any)
- A precise description of the land (plot number, parcel reference, site plan)
- A clear statement that the transfer is a gift (no payment required)
- The date of transfer
- Signatures of donor, donee, and witnesses
The Deed of Gift must be prepared by a licensed lawyer and executed (signed) before a commissioner for oaths or notary public.
Stamp Duty on Gifts
Even gifts are subject to stamp duty in Ghana. The GRA assesses stamp duty on the market value of the land (not on a zero consideration figure). Rates are the same as for any other land transfer: a percentage of assessed market value.
Attempting to claim the land has zero value on a gift is insufficient — GRA will assess market value independently.
Gift Tax / Income Tax
Under Ghana's Income Tax Act, gifts received above certain thresholds are subject to income tax in the hands of the recipient. However, gifts to close family members (spouses, children, parents) in Ghana have historically been treated more leniently. Consult a tax advisor on the current position — the rules on gifts change.
Capital Gains Tax on the Donor
A gift of land is treated as a disposal for CGT purposes — even though no money changed hands. The donor may be liable for CGT on the difference between the original cost of the land and its current market value at the time of the gift. This surprises many donors who assume there is no tax on a "free" transfer.
Registration at the Lands Commission
After the Deed of Gift is stamped by GRA, it must be registered at the Lands Commission. The donee should then pursue a Land Title Certificate in their name.
Gifting to Minors
If you are gifting land to a child under 18, the Deed of Gift should appoint a trustee to hold and manage the land until the child reaches 18 (or another specified age). The trustee holds legal title; the child holds beneficial ownership.
Practical Checklist
- Lawyer prepares the Deed of Gift
- Both donor and donee sign before commissioner for oaths
- GRA assesses market value and stamps the deed (pay stamp duty)
- Register at Lands Commission
- Donee applies for Land Title Certificate in their name
Total cost (excluding land value): GHS 1,500–5,000 for legal fees, stamp duty, and registration.
Use our free Land Deal Risk Check to assess your situation. Read about getting a title certificate and stamp duty rates.