Acquiring a property in Senegal is often an obstacle course. To understand the land regime, the Lease. What governs the construction of buildings in Senegal? What are the rights and taxes applicable to sales, transfers, leases and assignments?
To accompany you throughout your real estate acquisition process, ACS Capital provides a guide adapted to your needs, an overview of the legal and fiscal regime of the real estate sector in Senegal.
- The title deeds
The title deed is the notarized act that allows to prove that a third party is the owner of a property.
- The land title
The individual land title is the one that gives the full ownership of a property.
In Senegal, any individual or legal entity wishing to purchase a piece of land or to proceed with the division of a land title may apply to the Conservateur de la Propriété et des Droits Fonciers (Land Property and Rights Registrar), who will initiate a procedure that will result in the transfer of the property or its division in the name of the applicant. The accompaniment of a notary is mandatory for the procedure to succeed.
- The emphyteutic lease
This is a very long lease (between 19 and 99 years) concluded with a view to making an investment. The emphyteutic lease is a provisional title and differs from an ordinary lease in that it can be registered in the land registry like a title deed and can be mortgaged.
- The land title
- PROPERTY TAXES
The General Tax Code provides for the following property taxes:
The property tax on built-up properties:
This is levied for the benefit of local authorities. It is paid on the basis of the annual rental value of these properties on January 1 of the tax year.The land tax on built-up properties is due by the owner or the superficiary on January 1 of the tax year.In addition to the owner or the superficiary, this tax may be due by
– The usufructuary:
In case of usufruct.
– The lessee or emphyteutic lessee: In the case of an emphyteutic lease.
– The beneficiary or the concessionaire: In case of authorization to occupy the public domain or a concession.
– The occupant: In the case of occupation of land in the private domain of the State or the national domain, whatever the nature and qualification of the occupation title
– The lessee :
In case of leasing. The same applies to goods acquired through Islamic financing when the contract is accompanied by a promise of sale or forward purchase. However, for assets acquired through sukuk subscription, the tax is due by the issuer of the said loan
– The beneficiary
In case of a hire-purchase agreement.
– The tenant:
When the owner of bare land or land supporting a low-value building leases the land by long-term lease, with the tenant being responsible for constructing, at his own expense, a built-up building which is to revert without compensation and free of all charges to the lessor at the expiration of the lease.
TERMS AND ABBREVIATIONS
CFPB: Contribution Foncière sur les Propriétés Bâties
CGI : General Tax Code
COCC : Code of Civil and Commercial Obligations
Contribution foncière: Tax due by the holders of land titles (the owners)
Usufruitier: An individual who has the right to use a property and to receive the income from it
Rental value: The price that the owner could get from his buildings when he leases them.Market value:
The estimated value of a property at the time it is offered for sale.
Superficiary: The person who, by agreement, has built on another’s land. Owner of the buildings or crops established on another’s land
Insufficiently built-up land: A piece of land is insufficiently built-up when the value of the constructions made on it is lower than the market value of the land.
State-owned property: Property registered in the name of the State
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