In Uganda, land is currently one of the most marketable and profitable commodities in the economy. Whether it is for residential purposes or for lucrative business development, owning land in Uganda is such a valuable asset because of the rate at which it appreciates. So if put to good use owning land equals money bags!
According to the 1995 Ugandan constitution article 237(1), “Land in Uganda belongs to the citizens of Uganda and shall vest in them in accordance with the land tenure systems provided for in this constitution”. Simply put, foreigners can buy and own land in Uganda but only under a leasehold land tenure system. A foreigner can acquire leases of the land from the Ugandan Government in accordance with the laws prescribed by the parliament. The government grants leases on government owned land through district land boards. Ugandan citizens can also grant foreigners leases on their individual land titles. They are valid anywhere from 3 to 49 to 99 years which is definitely a good deal.
How a foreigner can acquire property/land in Uganda
If you are a foreigner trying to acquire land in Uganda, you should familiarize yourself with the legal provisions. You need to beware of the limitations to property ownership so as not to be scammed into forming unwarranted partnerships with the locals. A lawyer is needed during each transaction so as to conduct title searches and to obtain transfer forms from the Land Registry Office. The entire process can take up to 3 weeks depending on how fast your lawyer works but it will all be worth it when you’re making money off the land.
A physical search should be conducted by a land surveyor, for a fee of course, to establish ownership; in case the land is owned by a family in which case all the family members must consent to land sale in order to avoid any awkward situations. No one wants to be caught in the middle of family members fighting over land. Also, this is helpful because you get to know what the neighbors will be like and for some people that is a huge factor in land or property purchasing.
The lawyer drafts an agreement which is signed by both parties on the agreed terms after which transfer forms are filled and signed as well. A form of identification (passport photograph and identification card) is also handed over for proof of authorization of sale. Companies selling land should have a company resolution authorizing the land sale which should be registered at the registry of companies. If the transfer forms do not have a company seal, please take your business elsewhere.
A consent form declaring the purchase price is signed by the lawyer and then taken to a government valuer who allocates the property value. 1.5% stamp duty is paid for it and registration fees must be paid for the transfer. If the value of the land exceeds 50 million ugx, the tax payer identification number (given by the Uganda Revenue Authority) of the purchaser is required. The documents are all taken to the land registry for registration. Once all that is done and approved it is safe to say you are now the proud owner of land in Uganda.
Why foreigners should buy land in Uganda.
Uganda has a well regulated and highly liberalized economy in which all sectors are open for investment with free movement of capital to and from the country.
Uganda’s labour is highly trainable and the cost compares favorably in Africa. You will get to make lots of friends as well if that’s what you’re into.
Uganda is politically and economically stable which has provided a secure environment for businesses to thrive. You will definitely get your money’s worth out of investing in Ugandan land/ property.
With a highly growing population and high housing shortage, truly calls for a sophisticated type of investor to deal with the issues at hand, yet earn massive returns. Land in Uganda is a terrific inflation hedger that has shown high returns due to a tremendous growth in infrastructure therefore making it an excellent and secure investment. So go ahead and put your money into this investment if you would like to receive attractive returns.