As a real estate investor, having a rental property is considered a great investment. However, managing the rental property as an individual has numerous challenges that are likely to undermine the value of owning such a property.
Real Estate
Kenyans living abroad account for a significant portion of investment in the Kenyan real estate industry. Real estate is often preferred to other investment classes due to its superior returns and the stability it offers.
The High Court of Kenya recently issued judgement on a case on Value Added Tax (VAT) and held that one cannot separate land and the commercial buildings on it, thus maintaining that VAT is chargeable at 16% on the total value of the property.
On our previous article we had shared some few pointers when buying an apartment this time we focus on the seller and what efforts he is supposed to undertake so that he can secure a credible buyer.
The purchase of land or property is major decision and therefore, all aspects that have a financial implication should be properly evaluated. It is important for the buyer to take into consideration all the tax implications in order to avoid instances of incompliance. The purchaser is required to pay stamp duty on the acquisition of a property. The stamp duty is calculated at the rate of 4% of the...
Due to the current market trends land has escalated to high prices although there is still hope to become an apartment owner. A simple guide to becoming an apartment owner would be to first check whether the agents who are selling the apartments are registered under the Estates agents Registration Board simply because they exude professionalism and disregard dishonest practices. The estate...
Landlords in Kenya are required to account for tax on rental income either on monthly basis or annually depending on the nature of the rental income received.
Section 35 (1)(c) of the Income Tax Act provides that any person making payment to any non-resident person is required to withhold tax on payments of rent, premium or similar consideration for the use or occupation of property.
Installment tax is advance tax which is payable during the year of income. This is done before the accounts are done and finalized at year end in order to establish the actual tax payable.
The Kenyan law provides for a simplified tax regime on residential rental income ranging from KES 288,000 to KES 15,000,000 per annum. Under this regime, tax is calculated as 10% on gross rent received and is a final tax.