Article Index
5. Land Tax in Djibouti
The law levies rental income tax on income from renting out land. However, rental income is not included in the profits that are subject to the tax on business profits when they are related to a land tax on built properties. The law also provides for tax on capital gains realized on property transactions related to buildings or property rights and securities. The law further provides for land contribution and built properties where the tax base for property tax on built property consists of the perceived rent or rental value determined by a commission, the composition of which is defined by law. This tax is generally calculated on all land titles held by the taxpayer.
The law specifically provides for unconstructed properties where annual tax on undeveloped property concerns all undeveloped land, except for properties that are specifically exempt by law. This tax is at the rate of 25%.