Ethiopian Government Plans to Introduce New Real Estate and Vehicle Taxes

Ethio Real Estate reports that the government plans new taxes on real estate and vehicles. The plan appears in documents for the Home Grown Economic Reform agenda. The site says the new real estate tax would add to a separate property tax law that was still going through legal and administrative steps. It expected the new taxes to start in 2024 or 2025.

What this means for homeowners and investors

The main message is that holding property will cost more each year. In the past, owners in Addis Ababa paid modest land rent and lease payments. The reform documents point to taxes that track the value of the property.

This matters most for these groups:

• Owners of several units. Each unit may carry its own tax. Investors who keep units empty for a future price rise will carry a yearly cost.
• Owners of high-value homes. A value-based tax hits expensive property hardest.
• Landlords. They may raise rents to pass on part of the tax.

Parliament ratified the federal property tax proclamation in January 2025. Regional states and cities can set their own rules under it, so the rate and the start date depend on where your property is.

What to do now

Make sure your title deed, plot size and building records are correct. A tax based on value needs accurate records, and errors can raise your bill. Keep receipts for lease and land rent payments, since you may need them later.

Our guide to property tax and fees in Ethiopia explains the taxes on buying, selling and owning property. For the lease rules that sit under every urban plot, see our land lease guide.