How Foreigners Can Buy Property in Ethiopia Under the New Policy
Ethiopia has recently introduced policy changes allowing foreigners to purchase property, marking a significant shift in its real estate market. Previously, foreign nationals were barred from owning land and could only acquire property through long-term leases or joint ventures. However, the government has now opened up opportunities for foreigners to buy condominiums and apartments in major cities like Addis Ababa.
New Property Ownership Rules for Foreigners
Under the updated regulations:
– Foreigners can buy apartments and condominiums.
– Land can still be leased for up to 99 years for development projects.
– The policy aims to attract foreign investment and boost the housing market.
Steps to Buying Property in Ethiopia as a Foreigner
1. Find a Suitable Property
– Work with registered real estate agencies or developers.
– Focus on high-demand areas like Bole, Kazanchis, and other prime locations in Addis Ababa.
2. Verify Legal Ownership
– Conduct a title deed check to ensure no disputes or legal issues.
– Confirm that the property is eligible for foreign ownership.
3. Secure Financing (If Needed)
– Ethiopian banks offer limited mortgage options for foreigners.
– Many buyers use cash payments or international financing.
4. Sign a Sales Agreement
– Engage a local lawyer to review contracts and ensure compliance.
– The agreement should outline payment terms, transfer conditions, and penalties for breach.
5. Complete Registration & Pay Taxes
– Register the property with the Ethiopian Urban Land Administration Office
– Pay required taxes, including:
– Property transfer tax(15% of the value)
– Stamp duty (0.5% – 1% of the purchase price)
– Capital gains tax (15% if sold within two years)
Key Considerations for Foreign Buyers
✔ Residency Status :Owning property does not grant automatic residency, but investors may qualify for a visa if they meet capital requirements (typically $200,000+).
✔ Rental Income:Ethiopia’s growing urban population creates strong rental demand, making real estate a profitable investment.
✔ Currency Restrictions:Ethiopia has strict forex controls, so transferring funds can be complex.
Need a Consultant? ABOL Group Can Help
Navigating Ethiopia’s real estate laws can be challenging for foreigners. If you need assistance with legal processes, due diligence, or property registration, ABOL Group provides expert consultancy services to ensure a smooth and secure transaction.
Why Choose ABOL Group?
✅ Local Expertise :Deep understanding of Ethiopian property laws.
✅ End-to-End Support: From property search to legal registration.
✅ Trusted by Investors:Reliable and efficient processing.
Final Thoughts
Ethiopia’s real estate market offers promising opportunities for foreign buyers, especially in Addis Ababa’s booming housing sector. By following legal procedures and partnering with trusted consultants like ABOL Group, investors can secure property with confidence.
