Property Transfer Tax (PTT) is charged whenever property changes hands in Zambia. Whether you are selling a house, transferring shares, or assigning intellectual property rights, PTT applies at rates between 8% and 10% of the property's market value.
This guide covers the current rates, who pays, and how to calculate the tax. Use our PTT calculator for instant results.
Current PTT rates
PTT rates vary by the type of property being transferred:
Property Type | PTT Rate |
|---|---|
Land and buildings | 8% |
Shares | 8% |
Intellectual property | 8% |
Mining licence | 10% |
Exploration licence | 8% |
Mineral processing licence | 10% |
Tax base: PTT is calculated on the realised value - the open market value of the property at the time of transfer. For shares, it is the realised value or nominal value, whichever is greater.
Who pays PTT
The seller (transferor) is legally responsible for paying PTT. This is different from many countries where the buyer pays transfer taxes. In practice, the parties may negotiate who bears the cost, but the legal obligation falls on the person transferring the property.
Step-by-step calculation
Let's work through a property sale. You are selling a house for K850,000.
Step 1: Determine the realised value
The realised value is the open market value - typically the sale price agreed between buyer and seller. ZRA may challenge the declared value if it appears below market rates.
Realised value = K850,000Step 2: Identify the property type
This is land and buildings, so the rate is 8%.
Step 3: Calculate PTT
PTT = K850,000 x 8%
PTT = K68,000Step 4: Pay within 14 days
PTT must be paid within 14 days of the assessment being raised by ZRA. Late payment attracts penalties and interest.
More examples
Transaction | Value | Rate | PTT Due |
|---|---|---|---|
Residential property sale | K500,000 | 8% | K40,000 |
Commercial property sale | K2,000,000 | 8% | K160,000 |
Share transfer | K1,500,000 | 8% | K120,000 |
Mining licence transfer | K10,000,000 | 10% | K1,000,000 |
Patent assignment | K200,000 | 8% | K16,000 |
PTT on shares
When transferring shares, PTT is calculated on the realised value or nominal value, whichever is greater. This prevents undervaluation. However, shares that are listed and traded on the Lusaka Securities Exchange (LuSE) are exempt from PTT.
PTT on mining rights
Mining licences and mineral processing licences attract a higher rate of 10%. Exploration licences are taxed at 8%. The Commissioner General may determine the value of mining rights if the declared value appears inadequate.
To understand the penalties for late payment, see PTT late payment penalties. For transfers that are exempt from PTT, read Property transfer tax exemptions.