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The real estate market in Tanzania is booming, but the process of officially transferring a Title Deed (Hati) is notoriously bureaucratic. A massive point of confusion for both buyers and sellers is the tax burden: Who pays TRA?

1. The Buyer’s Burden: Stamp Duty (1%)

If you are buying property or land, you are responsible for paying Stamp Duty. This is a mandatory tax required to legally stamp and register the sales agreement and transfer documents. It is calculated as 1% of the property value.

The TRA Valuation Rule

If TRA determines the market value is 100M TZS, but your contract says 30M TZS, they will calculate your 1% Stamp Duty based on their 100M TZS valuation. Always account for the official valuer's assessment.

2. The Seller’s Burden: Capital Gains Tax (10%)

If you are selling property, you are responsible for paying Capital Gains Tax (CGT). TRA taxes the profit you made from the sale. CGT is calculated at 10% of the net profit (Selling Price minus the Original Purchase Price and Cost of Improvements).

Keep Your Receipts

If you bought an empty plot for 10M TZS, built a wall for 5M TZS, and sold it for 30M TZS, your profit is 15M TZS. However, if you cannot provide official receipts for the 5M TZS wall, TRA will not deduct it, and you will be taxed on a 20M TZS profit.

3. The Hidden Costs: Legal & Broker Fees

Taxes aren't the only expense. To safely execute a property transfer, you will need professionals:

Legal/Advocate Fees (1% - 3%): Required to draft the sale agreement and facilitate the transfer at the Ministry of Lands. This is usually paid by the buyer, though sometimes split.
Agency/Broker Fees (5% - 10%): If a "dalali" found the buyer or the property, they will take a cut of the final sale price. This is typically paid by the seller.

Calculate Your Property Taxes Instantly

Don't get caught off guard at the advocate's office. We built a free calculator to help you estimate your Stamp Duty, CGT, and legal fees before you enter negotiations.

Tanzania Property Tax Calculator

Calculate Stamp Duty, CGT, and Legal fees instantly.

Disclaimer: This article is for informational purposes only and does not constitute official tax or legal advice. Property transfers require official government valuation. Always consult a registered advocate or tax consultant for your specific real estate transactions in Tanzania.