Asset deals and share deals are the two ways in which an individual or a company can invest in real estate. When foreign investment is involved compliance with the terms of the Private Investment Law is paramount.
The purchase of a real estate in Angola is subject to transfer tax (SISA) as well as stamp duty.
The purchase of a real estate is subject to SISA at a rate of 2 percent (levied on the acquisition amount when equal to or higher than the value registered in the land register). Additionally, it is also subject to stamp duty at a rate of 0.3 percent (levied on the acquisition amount). Stamp duty is also due for the execution of a sale and purchase deed at a fixed amount of AOA2,000.
The first transfer of a property (as long as the price is below a certain threshold) may be exempt from SISA as long as the property is exclusively for personal and permanent residence purposes. Long-term leases (exceeding 20 years) also trigger the payment of SISA, as well as the execution of a promissory sale and purchase agreement, which includes the transfer of use.
The purchaser is responsible for the payment of the SISA and stamp duty.
Typically, share deals do not trigger the payment of SISA. However, in the event that the purchaser ends up holding more than 50 percent of a company holding real estate and does not prove that the main purpose of the operation is not the acquisition of the immovable properties then SISA is due.
Last modified 1 Aug 2019
No consumption taxes apply to purchases of real estate. VAT is expected to enter in force in October 2019 or January 2020 but will not be imposed on the purchase of real estate.
Last modified 1 Aug 2019
Costs include the notary's fees, the property registration fee and any fees for professional advisors. The notary's fees are determined by law and payable by the seller. The registration fees are payable by the buyer.
When the property is not leased, real estate owners are subject to property tax according to the following rates:
Property value
Rate
Up to AOA 5 million
0%
Above AOA 5 million (levied on the excess of AOA 5 million)
0.5%
When the property is leased, property tax is levied on the income from properties (ie rental income) located in Angola at a rate of 25% (the tax amount may not be lower than 1% of the value of the property).
The taxable amount of the property tax, regarding leased properties, is the annual rent minus 40% of expenses related to the property. The property tax code foresees the following expenses: technical assistance with lifts, janitor and cleaning staff salaries, stair lighting, central air conditioning, building administration (when the number of unit owners is not less than 10) and building insurance.
When the tenant is an entity or a person with organized accounting, the property tax is subject to withholding tax.
The property tax levied on leased properties is not deductible for corporate income tax purposes.
Rents received by collective investment undertakings are taxable under the corporate income tax at a rate of 7.5% or 15%, depending on the nature of the CIU.
Last modified 1 Aug 2019
The owner of properties may pay condominium expenses, building insurance, building administration etc.
Income is predominantly from rentals or capital gains whenever the property is sold.
Last modified 1 Aug 2019
In Angola, the income arising from a property lease (rents) is not subject to corporate or personal income tax. Rents are subject to property tax. Property tax is levied on the income from properties (ie rental income) situated in Angola at a rate of 25 percent (tax payable may not be lower than 1 percent of the value of the property that generates the rent). The taxable amount of the property tax is the annual rent minus 40 percent of expenses related to the property.
Last modified 1 Aug 2019
The distribution of dividends to shareholders is subject to the investment income tax where one or more of the following conditions are met:
When the income is paid by a person or entity with residence in Angola
When the income is paid through a permanent establishment in Angola
When the beneficiary of the income is an Angolan resident
When the income is distributed to a permanent establishment in Angola
Payment of dividends is subject to withholding tax at a rate of 10%. If the company which pays dividends is a foreign resident without permanent establishment in Angola the beneficiary will be responsible for the tax payment.
If dividends are paid regarding shares admitted to negotiation in a regulated market, a reduced tax rate of 5% is applied (this reduced rate is only applicable until November 2019).
Dividends distributed by a resident company to another resident company in respect of a minimum participation of 25% held for more than one year are exempt from withholding tax.
The investment income tax is not deductible for corporate income tax purposes.
Dividends received by collective investment undertakings are taxable under the corporate income tax at a rate of 7.5% or 15%, depending on the nature of the CIU.
Last modified 1 Aug 2019
Fees of legal and other professional advisors which are payable in connection with the ongoing management of the property. The owner may incur further costs related to the maintenance of the property (payable to the relevant suppliers).
Capital gains obtained by resident companies or by permanent establishments in Angola are included in their taxable income and subject to corporate income tax at a standard flat rate of 30 percent.
Real estate held by collective investment undertakings
Capital gains obtained by collective investment undertakings in Angola are included in their taxable income and subject to corporate income tax at a rate of 7.5 percent or 15 percent, depending on the nature of the CIU.
Real estate held by persons
Capital gains obtained by persons are subject to investment income tax at a rate of 10 percent.
