A Comprehensive Guide to Property Tax for Diaspora Sierra Leoneans: Roles, Responsibilities, and Key Vocabulary
- The Salone Standard
- May 22
- 7 min read
A practical guide for Sierra Leoneans living abroad who own property back home.
You Own Property in Sierra Leone. Here Is What You Owe the State.
Owning a house or land back home is one of the most meaningful ways diaspora Sierra Leoneans stay connected to the country. But ownership comes with legal responsibilities, and property tax is one of them. Whether your property is occupied by family, rented out, or sitting empty, the rules apply to you just the same as they apply to residents on the ground.
This guide breaks down exactly how property tax works in Sierra Leone, what your obligations are as a non-resident owner, and the practical steps you need to take to stay compliant from abroad.
Why Property Tax Exists
Local councils in Sierra Leone are legally required to collect property rates under the Local Government Act of 2022. This law replaced the older 2004 Act and gave councils a stronger mandate to generate revenue directly from property owners to fund local services: road maintenance, waste collection, drainage, and public infrastructure.
In Freetown, the Freetown City Council (FCC) manages this process. Other cities and towns have their own councils that operate on the same framework. The money collected is meant to link directly to the services your community receives. Paying your rates is not just a legal requirement. It contributes to the development of the very neighborhoods where your property sits.
How Your Property Is Valued
Sierra Leone uses a points-based valuation system, which was introduced in Freetown around 2020. Under this system, a property is not simply taxed based on an estimate that someone made subjectively. Instead, it is scored on measurable, visible factors:
The size of the building (surface area)
The type of walls (e.g., concrete block vs. wood or zinc)
The type of roof (e.g., zinc sheet vs. tile)
The quality of windows and finishings
The location of the property within the city or town
Each characteristic earns a number of points. Those points are added together and then multiplied by a standard mill rate to produce your annual tax bill. The better the quality of your property and the more desirable its location, the higher the assessed value and, as a result, the higher your rates.
Field enumerators and satellite imagery are used to map and assess properties. This means your property can be assessed even if you are not present.
How Much Do You Pay?
Tax amounts vary depending on your property's assessed value and location. For most residential properties in Freetown, the rate falls between 0.5% and 0.8% of the assessed value. Commercial properties may attract higher rates.
Beyond the basic property rate, there are two additional taxes that diaspora property owners need to be aware of:
Rental Income Tax
If your property is rented out, the rental income is taxable. Under the Finance Act 2026, non-residents pay 15% withholding tax on gross rental income. This is a final tax, meaning no further income tax filing is required on that rental income.
Note: there is a wear and tear allowance of around 10% that can be deducted for maintenance costs before the tax is calculated.
Capital Gains Tax
If you sell your property, the profit you make is subject to Capital Gains Tax at 25%. The Finance Act 2026 also introduced a 20% withholding tax that may apply to professional fees connected to the sale transaction.
This applies to non-residents selling property, so factor this in if you are considering selling your Sierra Leone property from abroad.
Key Deadlines to Know
Missing a deadline can trigger penalties, legal action, or in serious cases, property seizure by the council. Here are the dates you need to keep on your calendar:
Date / Period | What Happens |
|---|---|
By 1 September (annually) | Rate Demand Notices (RDN) are issued to property owners |
30 September (annually) | Annual property tax payment deadline for Freetown |
Installment option | Payments can often be split into up to three installments |
After deadline | Penalties apply; continued non-payment can lead to court proceedings |
How to Pay From Abroad
The Freetown City Council has a dedicated overseas payment process. Here is how to do it step by step:
Get your Rate Demand Notice (RDN). Your RDN is issued annually and contains your property reference number and the amount owed. If you do not receive it automatically, contact the FCC at reform_enquiries@fcc.gov.sl to request it.
Make an international bank transfer (SWIFT). Use the Bank Identifier Code (BIC) provided by the FCC for overseas payments. You will need your RDN reference number when making the transfer.
Send proof of payment. After completing the transfer, scan your payment receipt and your RDN and email both to reform_enquiries@fcc.gov.sl This step is critical: without it, your account may not be credited correctly.
Keep your receipt. Always save a copy of your transfer confirmation and the email you sent for at least three years.
If you have family or a trusted representative in Sierra Leone, they can also pay on your behalf using mobile money platforms like Afrimoney (shortcode *161#) or Orange Money, or in person at the Sierra Leone Commercial Bank (SLCB), Rokel Commercial Bank, or Zenith Bank.
What Happens if You Do Not Pay
Non-payment is taken seriously. The Local Government Act 2022 gives councils enforcement powers that include:
Financial penalties added to the outstanding balance
Legal action through the courts
Sealing or seizure of the property in cases of prolonged non-compliance
Being abroad does not exempt you. Ignorance of the bill is not accepted as a defense. If your property exists and it is on the valuation list, you are liable.
Land Ownership Rules for Non-Citizens
This section is relevant if you are a Sierra Leonean who has taken up citizenship elsewhere. Under Sierra Leone law, non-citizens generally hold land on a leasehold basis of up to 99 years, rather than outright freehold ownership. Some land acquisition arrangements also require a partnership with a local citizen.
If your citizenship status has changed since you acquired your property, it is worth speaking with a local property lawyer to confirm your ownership standing and whether your title documents need to be updated.
Are Any Properties Exempt?
Yes. Certain properties are exempt from local property rates. These include:
Properties used exclusively for public worship (churches, mosques)
Government-owned buildings
Recognized diplomatic missions and embassies
Standard residential and commercial properties owned by private individuals, including diaspora Sierra Leoneans, are not exempt.
Practical Tips for Diaspora Property Owners
Appoint a Local Contact
Designate a family member or trusted person in Sierra Leone to receive your Rate Demand Notice each year and alert you when it arrives. This avoids missed bills.
Keep Your Documents Updated
Make sure the council has your current email address and contact details. If your address is outdated, your RDN may never reach you.
Consult a Local Tax Adviser
If your property earns rental income or you plan to sell, speak with a Sierra Leonean accountant or tax adviser to understand your full obligations and available deductions.
Property Tax Vocabulary: Key Terms Explained
Property tax can come with unfamiliar language. Here is a plain-language glossary of the most important terms you will encounter.
Property Rates
The annual tax levied on buildings and land by local councils. This is the main property tax in Sierra Leone and is the amount shown on your Rate Demand Notice each year.
Rate Demand Notice (RDN)
The official annual bill sent to property owners. It shows the amount owed, your property reference number, and the payment deadline. This is the document you need to keep safe and act on each year.
Points-Based Valuation
The method used to assess how much your property is worth for tax purposes. Points are assigned based on the size, location, and physical quality of your property. The total points determine your assessed value and, in turn, your tax bill.
Mill Rate
The standard rate applied to your property's total assessed points to calculate the final tax amount owed. Think of it as the multiplier that turns your property's score into an actual leones figure.
Valuation List
The official register maintained by local councils that lists the assessed values of all properties within their area. It is updated every five years. If your property is on this list, you are liable to pay rates.
Rental Income Tax
A separate national tax on income earned from renting out property. For non-residents, this is set at 15% of gross rental income under the Finance Act 2026. It is deducted at source, meaning the tenant or agent should withhold it before paying you.
Capital Gains Tax
A tax on the profit you make when you sell a property. In Sierra Leone, the rate is 25% of the gain. This applies to non-residents selling Sierra Leone property.
Stamp Duty
A government tax charged on legal documents related to property transfers, such as when a property changes hands. It is typically paid at the time of signing the transfer documents.
Wear and Tear Allowance
A deduction allowed against rental income for the cost of maintaining a property. In Sierra Leone, this is approximately 10% of gross rental income and is subtracted before the rental income tax is calculated.
Leasehold
A form of land ownership where you hold the right to use land for a fixed period (up to 99 years in Sierra Leone) rather than owning it outright (freehold). Non-citizens typically hold land on a leasehold basis under Sierra Leone law.
Discovery (Property)
The process by which local councils identify and map properties using satellite imagery and field workers. Even if you have never registered your property with the council, it can still be discovered and added to the valuation list.
Withholding Tax
Tax deducted at the point of payment before the money reaches you. For non-resident landlords, rental income tax is withheld by the tenant or agent and paid directly to the National Revenue Authority (NRA) on your behalf.
Where to Get Help
If you need to contact the relevant authorities, here are the starting points:
Freetown City Council (FCC): fcc.gov.sl | reform_enquiries@fcc.gov.sl
National Revenue Authority (NRA): nra.gov.sl (for rental income tax and capital gains)
Local Government Revenue Initiative (LoGRI): logri.org (independent resource on local tax reforms)
This article is for informational purposes only and does not constitute legal or financial advice. Tax rules and rates can change. For guidance specific to your property situation, consult a qualified Sierra Leonean tax professional or legal adviser.
The Salone Standard is an independent public information platform focused on systems understanding, public awareness, and practical resources.
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