Published on and written by Cyril Jarnias
Buying an apartment in Dakar to rent it out, keeping a villa as a secondary residence on the Atlantic coast, or preparing for retirement under the Senegalese sun: for a French person, real estate in Senegal is more than just an exotic investment. But behind the postcard image lies a very structured tax environment, with local property taxes, rules on capital gains, and most importantly a Franco-Senegalese tax treaty that completely changes the game compared to a real estate acquisition in France.
Good to know:
A French owner must understand their non-resident status, Senegalese local taxes, taxation of rental income, calculation of capital gains, the benefits of the Franco-Senegalese tax treaty, and interactions with the French tax authorities to manage their property.
Tax Residence: French, Senegalese, or Both?
Before even discussing local taxes or capital gains, you need to know “where” you are for tax purposes. Senegal, like France, applies its own definition of a resident, and the tax treaty then comes into play to resolve ambiguous situations.
183
The minimum number of days of annual stay in Senegal to be considered a tax resident.
Anyone who does not meet these criteria is treated as a non-resident. For a French person living in France and simply owning a property in Dakar, the natural status is therefore that of a Senegalese non-resident. In this case, the principle is simple: a non-resident is only taxable in Senegal on their Senegalese-source income, for example, rent from an apartment in Dakar or a capital gain on a villa located in Saly.
Caution:
A Senegalese resident is taxable in Senegal on their worldwide income, subject to tax treaties. The France-Senegal agreement avoids double taxation by allocating taxing rights.
In case of a residency conflict – for example, a French person who splits the year between Paris and Dakar, with family and activities on both sides – the Franco-Senegalese treaty provides “tie-breaker” rules: first, the location of the permanent home and center of vital interests is considered; then, if necessary, where the taxpayer stays the longest; and finally, nationality. So simply owning a property does not make someone a resident; it is a set of indicators that the administration and, if needed, the judge can assess.
Senegalese Local Taxes: CFPB, CFPNB, and Other Contributions
As soon as a French person buys real estate in Senegal, they fall under the scope of property contributions, whether resident or not. The Senegalese system distinguishes two main categories: built properties (buildings in the broad sense) and unbuilt properties (bare land or insufficiently built land).
Property Tax on Built Properties (CFPB)
The CFPB is the equivalent of the property tax on built properties. It applies to all permanently constructed buildings: houses, apartment buildings, villas, factories, workshops, warehouses fixed to the ground, and more generally any installation considered a building.
The tax base is not the purchase price, but the official rental value, i.e., the theoretical annual rent the property is supposed to generate as of January 1st of the tax year. This rental value may include not only the building but also the land that constitutes immediate and essential dependencies of the construction.
5
The standard CFPB rate is 5% for residential properties in Senegal.
A crucial point for a French person building or extending a house: new constructions, reconstructions, and extensions benefit from a total CFPB exemption for five years from the completion of the work. This exemption is a significant advantage, provided the filing procedures are followed (declaration to the tax authorities within 90 days of completion, submission of a certificate of habitability, and proof of a compliant building permit).
Tip:
The portion of the rental value not exceeding 1,500,000 FCFA may be exempt, but this partial exemption only applies to a single dwelling and on condition that the owner actually resides there.
Property Tax on Unbuilt Properties (CFPNB)
For bare or insufficiently built land located within the boundaries of local authorities, the Property Tax on Unbuilt Properties (CFPNB) applies. It concerns registered or unregistered land, as well as land with constructions not permanently fixed to the ground.
Unlike the CFPB, the calculation basis here is the market value, i.e., the estimated market price of the land. Tax authorities apply a rate of 5% to this value to determine the base contribution, to which a surcharge of 1% to 3% may be added depending on the location and the “insufficiently built” nature of the land.
In practice, the CFPNB operates in tiers, with progressive rates based on the cumulative value of land owned by the same taxpayer in one locality. The regulations provide, for example:
| Cumulative market value tier of land | Standard CFPNB rate (excluding Saint-Louis) |
|---|---|
| From 1,000,000 to 10,000,000 FCFA | 1% |
| From 10,000,001 to 20,000,000 FCFA | 2% |
| Above 20,000,000 FCFA | 3% |
Specific rules exist for certain cities like Saint-Louis, with adjusted thresholds, but the logic remains the same: the larger the cumulative land base, the higher the marginal rate.
Good to know:
For a French person buying developable land, it is imperative to include the CFPNB (Property Tax on Unbuilt Properties) in the annual budget. Bare or minimally built land in a sought-after area can quickly be subject to surtaxes.
Other Local Contributions and Specific Rates
The Senegalese system also includes a Contribution on Premises and Installations (CEL), payable by persons engaged in a professional activity in premises (professional) located in Senegal under the actual profit regime. It consists of a portion based on the rental value of the premises and a portion based on value added. This contribution concerns businesses more than individual investors, but it may come into play in the case of professional use of premises.
Certain rented or free-of-charge premises are subject to a specific rate of 15% on the rental value, and specific rates of 20% may apply to premises and installations recorded as assets of a company. These subtleties can weigh on the structuring of a project where a French person owns, through a Senegalese company, buildings used for an activity.
Taxation of the Purchase: Registration Fees and Transaction Costs
Beyond annual taxes, entering the Senegalese real estate market involves a series of fees and acquisition taxes. For a French person accustomed to the French system of transfer duties and notary fees, the logic is familiar, but the percentages differ.
5.9
The total registration and transfer duties amount to 5.9% of the sale price, payable by the buyer.
Other fees (notary fees, land registry advertising, stamps, etc.) further increase the bill. Notaries apply a sliding scale percentage of the property value, subject to VAT of 18%. Land registry advertising fees of around 1% and registration fees with the building registry of about 0.5% are also standard, not to mention fiscal stamps charged per page of the deed.
10 to 12
Closing costs for a standard purchase of an older property with a clear title typically represent 10% to 12% of the purchase price.
Special case: buying a new home from a developer subject to VAT. In this configuration, the buyer is subject to real estate VAT at a rate of 18% on the price, but may, depending on applicable regulations, be exempt from the 5% registration duties. The overall bill then depends on the breakdown between the VAT-taxable base and related exemptions. It is essential to verify the exact tax regime of the development (existing / new) with the notary.
Rental Income: Actual Regime, CGF, and Withholding Tax
For a French person renting out their property in Senegal, the core issue is taxation of rents. Senegal distinguishes two main regimes for taxing rental income: the actual regime (“régime réel” or “régime du bénéfice réel”) and the Global Property Contribution (CGF), a simplified flat-rate mechanism.
The Actual Regime: 30% Deduction and Expense Deductions
Under the actual regime, rents are subject to treatment relatively similar to French rental income, but with specifics. Gross rents received are first reduced by a standard allowance of 30%, intended to cover routine expenses (minor repairs, non-recoverable charges, various fees). The taxpayer is thus left with a base of 70% of the rents.
On this base of 70%, they can then deduct their actual expenses: loan interest, major repair work, major renovations, management fees, possible salaries (security, concierge), etc. The result is net rental income, taxable at a rate of 20% as real estate income tax.
Example:
The actual regime becomes mandatory when annual rents exceed 25 million FCFA. Below this threshold, an owner may voluntarily opt for it to deduct high loan interest or renovation costs, for example, to rehabilitate an older building.
In practice, this regime is particularly interesting for a French person financing their investment through credit and carrying out significant work, as it reduces the taxable base in Senegal. However, it requires more rigorous accounting and solid supporting documents.
The Global Property Contribution (CGF): Flat Monthly Rent Fee
For landlords whose total annual rents do not exceed 30 million FCFA, the Global Property Contribution offers a simplified path. It is an annual flat-rate levy, expressed as a number of months of rent according to brackets, and replaces in a single contribution the rental income tax, certain minimum taxes, and the corresponding property tax on built properties.
The schedule announced for 2025 illustrates this logic:
| Annual gross rent bracket | Annual CGF (in months of rent) | Approximate effective rate |
|---|---|---|
| Up to 12,000,000 FCFA | 1 month of rent | ≈ 8.33% of annual total |
| From 12,000,001 to 18,000,000 FCFA | 1.5 months of rent | ≈ 12.5% |
| From 18,000,001 to 30,000,000 FCFA | 2 months of rent | ≈ 16.67% |
In other words, a French owner receiving 10 million FCFA in annual rents could pay a CGF equivalent to one month’s rent, i.e., around 8.33% of their gross rents, in exchange for simplification: no more calculation of deductible expenses, the contribution covers both income tax and certain local taxes.
Good to know:
The Global and Flat-Rate Contribution (CGF) is only available to individuals or SCI partners whose total annual rents do not exceed 30 million FCFA. Above this threshold, the actual regime becomes mandatory, offering more complexity but allowing the deduction of actual expenses.
Withholding Tax by Institutional Tenants
Another mechanism not to be overlooked: when a tenant is a company or public entity, it is generally required to withhold 5% on the rent paid to an individual landlord and remit this withholding to the tax authorities. This withholding does not apply when the monthly rent is less than 150,000 FCFA, nor when the owner is a company subject to corporate income tax, nor when payment is made through a real estate agency.
For a French non-resident, this withholding tax acts as a prepayment on Senegalese tax. However, it requires careful coordination of annual declarations and anticipation of cash flow: part of the rent never reaches the landlord’s account, as it is directed straight to the tax authorities.
Capital Gains on Real Estate: 10% for Built Property, 15% for Land
The issue of capital gains is central for any investor – whether a French resident keeping a foothold in Dakar, or a retiree settled locally selling their villa. Senegal has set up a specific mechanism, the real estate capital gains tax, which applies to gains from the sale of built properties and bare land.
How is Capital Gain on Real Estate Calculated in Senegal?
The gross capital gain appears to be the difference between the sale price and the purchase price stated in the deed. But the taxable base is not calculated so mechanically. For built properties, the Senegalese administration allows a standard increase of 20% on the purchase price. In other words, a coefficient of 120% is applied to the purchase price to account for inflation and certain costs.
Tip:
In addition to the increase, the owner can deduct the cost of permanent improvements such as structural work, extensions, or enlargements. These are not mere refurbishments, but expenses that increase the substance of the property.
The logic is as follows:
1. Calculate the gross capital gain (sale price – purchase price).
2. Revalue the purchase price by 20%.
3. Add to this revalued price the cost of properly documented permanent investments.
4. Determine the net capital gain by subtracting this “adjusted base” from the sale price.
5. Apply the tax rate to the net capital gain.
For built properties, the real estate capital gains tax rate is 10%. For bare land, it is 15%. When the difference is negative (sale price lower than purchase price), there is a loss situation, and no tax is due.
Caution:
The notary calculates the capital gain with all parameters, collects the tax at the time of sale, and remits it to the state. The deed of sale must be registered within one month of the transaction, and the tax is settled at that time.
Special Cases and Interactions with Corporate Income Tax
For companies, capital gains generally follow the profit regime, not that of individuals: they are included in the company’s taxable income and taxed at the corporate income tax rate (around 30%). However, there are mitigations: if the proceeds from the sale are reinvested in new fixed assets in Senegal within a certain timeframe, deferred taxation may be granted, particularly in cases of merger or restructuring.
Note that favorable mechanisms are provided for certain specific real estate operations (buildings renovated in designated zones, state-approved programs), with partial or total exemptions from corporate income tax on capital gains, particularly for developers.
Franco-Senegalese Tax Treaty: A Pivot Point for French People
For a French person owning property in Senegal, the tax treaty concluded between Paris and Dakar changes the perspective compared to a real estate investment in France or in a country without a treaty.
Key Rule: Rents and Real Estate Capital Gains Taxable Only in Senegal
The fundamental point is this: according to the tax treaty between France and Senegal, income from properties located in Senegal (rents, as well as agricultural and forestry profits from these lands) is taxable only in the state where the property is located. The same principle applies to real estate capital gains: the capital gain realized upon the sale of a property in Senegal is taxable in Senegal, and not in France.
Concretely, for a French resident:
Good to know:
Rental income from an apartment in Dakar is taxed in Senegal (actual regime or CGF), without direct taxation by France. The capital gain from the sale of a villa in Dakar is taxed in Senegal (10% on the net capital gain for built property), without French taxation on that capital gain.
In France, although these Senegalese-source incomes are “exempt”, they may nevertheless be taken into account to calculate the effective rate applicable to the taxpayer’s other worldwide income (method known as the effective rate or tax credit, depending on the precise provisions of the treaty). This means that Senegalese rents or capital gains can increase the French marginal rate on other income, without a second tax being levied on amounts already taxed in Senegal.
Summary table for a French resident owning property in Senegal
Summary of key information for a French owner residing in Senegal.
Tax Status
Senegalese tax resident if stay > 183 days or center of interests in Senegal. Declaration of worldwide income in Senegal, with tax credit in France.
Rental Income
Taxable in Senegal (lease, transfer). Rate: 20% on gross income. Possible exemption for unfurnished rental as a dwelling if declared.
Real Estate Capital Gain
Taxed in Senegal: 5% for resident for > 5 years, otherwise 20%. France-Senegal tax treaty: taxation in Senegal.
Filing Obligations
Annual property declaration in Senegal (income tax). In France, form 2042 for income received.
Local Taxes
Property tax in Senegal varies by region. Partial exemption for primary residence under conditions.
Legal Advice
Recommendation: consult a chartered accountant specializing in international taxation to optimize the situation.
| Type of income related to a property located in Senegal | Taxation in Senegal | Taxation in France for a French resident |
|---|---|---|
| Rents (unfurnished or locally furnished) | Yes, according to local rules | No, but taken into account to calculate the overall effective rate |
| Real estate capital gain upon resale | Yes (10% built, 15% land) | No, same principle of inclusion for the effective rate |
| Senegalese local taxes (CFPB, CFPNB, etc.) | Yes | No, except indirect impact via the net cost of the investment |
This exclusive taxation on real estate located in Senegal clearly distinguishes this country from many other states where capital gains can be taxed both at source and in the state of residence, with a tax credit mechanism. For a French person looking to diversify their assets outside France, this feature is far from trivial.
Reciprocal: A Senegalese Person Selling in Paris
The treaty works both ways. A Senegalese resident who owns an apartment in Paris is taxable in France on their rents and on the capital gain upon resale. Senegal must then take into account the tax already paid in France according to the non-double taxation mechanisms provided by the treaty, without taxing this income a second time.
Comparison with French Real Estate Taxation: What Senegal Changes for a French Person
To measure the advantages or constraints of an investment in Senegal, it is useful to compare a few major items with the situation of a property held in France by the same owner.
Good to know:
Property owners, whether resident or not, must pay property tax on their properties. The residence tax now only concerns secondary residences. Rental income is taxable (micro- property or actual regime) with social security contributions of 17.2%. Upon sale, the capital gain is taxed at 36.2% (19% tax + 17.2% contributions), but allowances allow a full tax exemption after 22 years and exemption from contributions after 30 years of ownership.
In Senegal, for a property held by a French person who remains a tax resident of France, the pattern is very different:
0.3% to 0.8%
Local taxes in Senegal represent in practice 0.3% to 0.8% of the market value per year, even though the nominal rate is 5% on the rental value.
For a French investor looking to arbitrate between a new rental purchase in France and an equivalent investment in Senegal, this structure can tip the scales. At a comparable gross rental yield, the combination of “Senegalese local charges + capital gains rate capped at 10% on built property” may prove significantly lighter in the long term than the pairing of “French tax + social security contributions” on rents and capital gains.
Filing Obligations in Senegal and France for a French Owner
Even though the tax treaty concentrates the economic tax burden on Senegal, a French owner of a property in Dakar or elsewhere in Senegalese territory cannot completely ignore the French tax authorities.
Good to know:
Any non-resident receiving Senegalese-source income (e.g., rents) must file a return. They are also required to appoint a tax representative domiciled in Senegal to receive notifications and represent them. In case of cumulative income or self-employment activity, an annual global return is mandatory.
On the French side, even though rents and capital gains from Senegalese sources are exempt from tax under the treaty, they must be included in the worldwide income declaration form, if only to allow the correct application of the effective rate. Additionally, a French owner must, in France, comply with obligations related to their French properties: annual declaration of the occupancy status of dwellings, possible payment of property tax, residence tax on French secondary residences, Real Estate Wealth Tax (IFI) if the net value of real estate assets (French and, depending on residence, possibly foreign) exceeds 1.3 million euros, etc.
Tip:
The tax treaty between France and Senegal does not exempt a French owner from their declarations in France; it only allocates the taxable base between the two states. To comply with these rules, it is necessary to have a consolidated view of one’s income and assets on both sides of the Mediterranean.
For a French Person, How Best to Structure a Real Estate Investment in Senegal?
All the texts and rates described above have a very concrete impact on how to design a real estate project in Senegal.
For a purely rental investor, with modest rents and few real expenses, the Global Property Contribution can offer a simple and effective framework: a flat-rate levy of around one to two months of annual rents, covering both income tax and certain local taxes. Above 25 to 30 million FCFA in annual rents, the actual regime becomes mandatory; it will then be necessary to leverage the deductibility of loan interest and major work to limit taxable income to 20%.
Tip:
For a construction or major renovation project, the CFPB exemption for five years from completion offers a breathing window on local taxes, provided that declarations are scrupulously followed (completion declaration, certificate of habitability, etc.). Additionally, adding extension and improvement costs to the acquisition base for future capital gain calculation mechanically reduces the net capital gain taxable at 10% upon resale.
For a French person anticipating a medium- to long-term sale, the prospect of capital gains taxation capped at 10% (on built property) in Senegal, with no additional tax in France, can make Senegal a relevant link in an asset diversification strategy. Conversely, a purely speculative project on bare land must incorporate the higher rate of 15% on capital gains, as well as the CFPNB and its possible surtaxes in case of land left “insufficiently built”.
Good to know:
For future residents in Senegal, income tax can reach 40-43% on high incomes, with an 80% deduction on foreign pensions under conditions. Regarding real estate, the tax treaty specifies that a property located in Senegal is taxed locally on its rents and capital gains, even if the owner remains a tax resident in France.
In this context, the challenge for a French person is not to “flee” tax, but to properly understand the rules on each side in order to build a coherent, profitable, and internationally compliant asset base. Senegal offers, in this area, a relatively readable environment: no quotas for foreigners, a structured real estate tax system, and a treaty with France that validates the principle of concentrated taxation at source for properties located on its territory.
An estate planning project or a question? Contact us now to speak with a wealth management expert.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
