If you are an international investor looking to expand your long-term property profits, Ghana offers a stable political and financial environment that can be a strong prospect for your investment.
Planning the investment from abroad, though, can be challenging, especially if you do not know who can support you. Among the critical aspects to consider are hiring a professional property management company to guide you through the key stages of the purchase process, registering with the tax authority, and securing your funds with accredited banks.
What Property Management Can Do For International Investors
As an initial step, the general advice is to hire a local property developer who also offers property management and after-purchase assistance. Capemay Properties has a proven portfolio of luxury developments across the most in-demand Accra neighbourhoods, offering post-purchase assistance and property maintenance, including 24/7 security services and tenant support.
The property developer is also a stable presence in the country where you are investing, guiding you through the bureaucratic processes required for the purchase. For the property management aspect, they are there to find regular tenants for your property, set up lease terms for you while you are out of the country, and handle regular payments and issue receipts to comply with local regulations.
Some property developers are building in prime Accra areas such as Cantonments or East Legon and accept rent payments in dollars, allowing them to host international corporates or diplomats and granting property owners income in a foreign currency.
Tax Registration and Compliance
If you are investing for future rental income, you are required to pay taxes to the Ghana Revenue Authority (GRA) regardless of your residential status. Before you transfer your income to your local bank account in your country of residence, you must remit the correct amount of tax, which, for overseas residents, is roughly 15% of the rent for commercial properties and a flat rate of 25% for other non-residential landlords.
This tax must be paid within 30 days of receiving the rental income at any Domestic Tax Revenue Division Office. For overseas residents, it is done through official channels online.
To keep track of all your payments, it is highly recommended to maintain a clear record. Make sure you keep all receipts in case of any GRA checks, and pay on time. Any delay in tax payment can cost you 125% of the statutory rate.
Transfer Rental Earnings: Repatriating Funds
If you want to transfer your rental income to your overseas bank account, you should do so through authorised Ghanaian banks. The bank needs to be registered under the Foreign Exchange Act 2006 (Act 723) rather than informal channels. The transfer requires authorisation through the GRA, where you should show proof of your tax records and transfer records.
Depending on your business structure and whether you are renting for business purposes or for residency, you should comply with Bank of Ghana regulations and Ghana Investment Promotion Centre (GIPC) requirements. Normally, you can transfer up to US$10,000 per year. Larger transfers require full supporting documentation and tax clearance. Other than the tax record proof, you might be asked to provide proof of the origin of the income.
Choose the Right Rental Terms
Choosing the right rental terms in Ghana depends on you. Depending on your needs, you can choose either short-term flexibility or long-term stability.
If you are renting short-term, this normally means the property is occupied for 3 to 6 months. Due to their low commitment, they are well-suited for returnees or job seekers, but they incur higher maintenance costs. On the other hand, long-term stays entail a longer contract ranging from 1 to 2 years and are more suitable for professionals and families.
When you set your rental terms, make sure you comply with the legal rules. You should provide a rent card within 7 days of the start of the tenancy. By law, landlords cannot demand more than 6 months’ advance. A clear payment plan should be established before the tenancy period begins, outlining payment times and rates.
Your rental agreement must include: identification of both parties to the agreement (tenant and landlord), who is responsible for maintenance and payment, the notice period and agreed rental period, and the deposit conditions and amount.
Rent Your Overseas Property For Long-Term Profit
Investing in Ghanaian property from abroad can be a rewarding way to build long-term income, as long as you are taking the right steps throughout the process.
Partnering with a reputable local developer and property manager means you don’t need to be in the country to source tenants or handle routine maintenance. Staying compliant with the GRA and using authorised banks keeps your earnings secure and easy to repatriate.
Add well-structured rental terms that match your goals, and you have a solid foundation for a property that works for you and generates significant income. With the right local support and a clear understanding of the rules, your overseas investment in Accra can become a dependable source of long-term profit.
Sign up for your daily dose of UnWoKe News | Privacy guaranteed | Unsubscribe at any time.