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Buying or selling property in Zimbabwe? It's not just about the purchase price. Transfer fees, legal fees, Capital Gains Tax (CGT), and other hidden costs can add a significant amount to your total expenses.
Whether you're buying a stand in Ruwa, a townhouse in Borrowdale, or a family home in Bulawayo, this step-by-step 2025 guide will help you calculate the true costs of property transactions in Zimbabwe.
1. Property Transfer Fees (Deeds Office Fees)
These are fees paid to the Deeds Office to register the change of ownership.
Calculation (2025 Rates):
3%–4.5% of the purchase price, depending on property location:
- High-density suburbs (e.g., Chitungwiza, Mbare): 3%
- Low-density/Prime areas (e.g., Borrowdale, Mt Pleasant): 4% – 4.5%
Example:
- Property Price: USD $80,000 (Borrowdale)
- Transfer Fee: 4% × $80,000 = $3,200
Important Notes:
- Paid by the buyer unless otherwise agreed.
- Required before the Title Deed is issued.
2. Conveyancer’s (Legal) Fees
A registered conveyancer (lawyer) handles the legal paperwork and submission to the Deeds Office.
Calculation (Law Society of Zimbabwe 2025 Tariffs):
Approx. 1%–2% of the property price, with a minimum fee of USD $800.
Example:
- Property Price: USD $60,000
- Conveyancer Fee: 1.5% × $60,000 = $900
Important Notes:
- Paid by the buyer.
- Includes preparation of documents and Deeds Office lodgment.
3. Capital Gains Tax (CGT)
Paid by the seller, CGT is calculated based on profit made from selling the property.
Calculation:
- 20% of the capital gain OR 5% of the sale price (if the gain cannot be determined or for non-residents).
Example:
- Selling Price: USD $100,000
- Purchase Price: USD $70,000
- Profit (Capital Gain): $30,000
- CGT: 20% × $30,000 = $6,000
OR, if seller is a non-resident:
- CGT: 5% × $100,000 = $5,000
Important Notes:
- Must be cleared with ZIMRA before transfer approval.
- Delays CGT clearance can hold up the entire process.
4. Rates & Tax Clearance Certificate
Before transfer, the seller must obtain a Rates Clearance Certificate from the local authority (e.g., Harare City Council).
Estimated Fees (2025):
- USD $500 – $1,500 depending on location and arrears.
- Must confirm all municipal bills, rates, and levies are cleared.
Important Notes:
- Buyer cannot process transfer without this certificate.
5. Other Potential Costs
|
Item |
Estimated Cost (USD) |
Responsibility |
|
Valuation Report |
$200 – $600 |
Buyer (esp. if using mortgage) |
|
Stamp Duty |
Currently waived (verify annually) |
N/A |
|
Estate Agent’s Commission |
3% – 5% of sale price |
Seller (usually) |
6. Total Estimated Property Transaction Costs in Zimbabwe (2025):
|
For Buyer (USD) |
|
|
Transfer Fees |
3% – 4.5% of property price |
|
Conveyancer’s Fees |
$800 – $1,500+ |
|
Rates Clearance |
$500 – $1,500 |
|
Valuation (if applicable) |
$200 – $600 |
|
For Seller (USD) |
|
|
Capital Gains Tax |
20% of profit or 5% of price |
|
Estate Agent’s Commission |
3% – 5% of sale price |
|
Rates Clearance |
$500 – $1,500 |
Example: Buying a USD $100,000 House in Borrowdale (2025):
|
Cost Item |
Amount (USD) |
|
Transfer Fees (4%) |
$4,000 |
|
Conveyancer Fees (1.5%) |
$1,500 |
|
Rates Clearance |
$1,000 |
|
Total Additional Buyer Costs |
$6,500 |
7. Tips to Reduce or Manage These Costs:
- Negotiate legal and conveyancer fees upfront.
- Buy from developers offering inclusive transfer cost packages.
- Clear all municipal rates early to avoid last-minute delays.
- Diaspora buyers should use trusted local conveyancers for transparency.
Conclusion: Budget Wisely Before You Buy
Beyond the property price, transfer fees, legal charges, CGT, and municipal taxes are unavoidable costs in any Zimbabwean property deal. Smart buyers plan for these expenses to avoid unexpected surprises and delays.
Call to Action:
Visit Property.co.zw to browse verified listings and connect with trusted conveyancers and property lawyers today.
