Tax on Rental Income in Ghana: What Landlords Must Know

Ghana has hundreds of thousands of rental properties. A small fraction of landlords declare rental income to the GRA. This is changing — GRA has been actively expanding its rental income tax enforcement. Here is what you are legally required to do as a landlord.

Is Rental Income Taxable in Ghana?

Yes. Rental income is taxable under the Income Tax Act, 2015 (Act 896). There is no threshold below which rental income is exempt — if you receive rent, you are liable to pay tax on it.

Tax Rates for Rental Income

Rental income is taxed at a flat rate depending on the payer:

• Individuals: 8% of gross rental income (no deductions — this is a simplified final tax)
• Companies: Rental income is included in company income and taxed at 25%

For individuals, Ghana operates a withholding tax system for commercial/business rentals: the tenant is required to withhold 8% from the rent and pay it directly to GRA. For residential rentals, the landlord must self-declare.

What Counts as Rental Income

• Monthly/annual rent received
• Advance rent (taxable when received, not when earned)
• Key money or entry fees charged to tenants
• Service charges or utilities included in rent

Allowable Deductions (for Companies)

Companies can deduct legitimate expenses against rental income before calculating tax:

• Property management fees
• Insurance premiums
• Mortgage interest (not capital repayment)
• Repairs and maintenance
• Depreciation on fixtures and fittings
• Ground rent and property rates

Individuals using the 8% flat rate cannot claim deductions — but the 8% rate is set low to compensate.

How to File

For individual landlords:

1. Register with GRA if you haven't already (get a TIN)
2. File an annual income tax return declaring rental income
3. Pay the 8% tax — quarterly installment payments required if annual rental income exceeds GHS 20,000

Filing deadline: April 30 of the following year.

Commercial Tenants: Withholding Obligations

If you rent space to a business (office, shop, warehouse), the business tenant is legally required to:

• Withhold 8% from every rent payment
• Pay this directly to GRA on your behalf by the 15th of the following month
• Give you a withholding tax certificate as evidence

You still need to file an annual return — the withheld tax is a credit against your liability.

Consequences of Non-Compliance

• GRA can assess rental income from comparable properties and raise an assessment against you
• Penalties: 10% of unpaid tax
• Interest at Bank of Ghana policy rate + 5% on outstanding amounts
• Criminal prosecution in serious cases
• GRA has increasingly been using data from Lands Commission and utility connections to identify undeclared rental properties

Practical Tip: Multi-Property Landlords

If you own multiple rental properties, engage a tax accountant to structure your rental income efficiently — particularly the choice between individual (8% flat) vs company structure (25% but with full deductions), depending on your expenses.

Use our free Land Deal Risk Check to ensure your property is legally documented. Read about capital gains tax on property sales and property valuation.