Focus keyword: presumptive rental income tax Zimbabwe · Meta description: From 1 January 2026, landlords who rent premises to businesses pay a final 15% tax on gross rent every month. We explain who pays, how it is calculated and the deadlines.
Mrs Chipo Moyo owns a row of shops on a busy road in Chitungwiza. A hardware store, a pharmacy and a barber rent them, providing a steady source of income. For years she treated the rent as money she could spend or reinvest. Then her nephew, who manages the property, came home with a question from a tenant: “Has your aunt registered for the new rental tax? If she hasn’t, ZIMRA may require us to pay it from the rent.”
Mrs Moyo is not alone. Thousands of property owners across Zimbabwe are discovering that the rules on rental income changed on 1 January 2026.
The Finance Act, 2025 (Act No. 7 of 2025) introduced a presumptive rental income tax, and ZIMRA explained how it works in Public Notice 08 of 2026, issued on 5 February 2026. The tax applies where premises are rented to a tenant who uses them to carry on a trade, business or occupation: shops, offices, warehouses, workshops, clinics and similar spaces.
The rate is 15% of gross rent received. Repairs, rates, insurance and bond interest do not reduce the presumptive rental tax base. For Mrs Moyo, that means calculating the tax on rent received before deducting property expenses. Accurate records and timely filing help her protect rental cash flow and avoid preventable compliance problems.
“The tax is final. Once it is paid, there is nothing to claim back, offset or carry forward. What you pay each month is what you owe.”
Because the tax is final, it cannot be claimed as a credit, refunded or set off against any other income tax. That makes it straightforward, but it also means landlords with heavy property costs cannot use those costs to reduce the bill.
The law calls the person who must pay a “registrable proprietor”. That includes the owner, the landlord, a lessee who sub-lets, or a sub-lessee, anyone who receives rent, directly or indirectly, for premises used for business. It also covers Zimbabweans living abroad who own commercial property at home. A non-resident owner must appoint a representative who lives in Zimbabwe.
Registration comes first. Owners who were already receiving rent had to register by 1 January 2026; anyone who becomes a registrable proprietor later must apply within 30 days. ZIMRA also asks for a schedule of the leased properties and the tenants occupying them, and must be told of any change of address or when a lease ends. Not registering does not remove the obligation to pay.
Then comes the monthly routine. The return is due by the 5th day of the month after the rent is received, and the tax must be paid by the 10th. Rent received in September 2026 is declared by 5 October and paid by 10 October. ZIMRA confirmed in Public Notice 50 of 2026 that the return is now available on TaRMS, its online tax system.
Mrs Moyo’s nephew had heard right about the tenants. If a landlord or agent does not pay, ZIMRA can appoint the tenant to pay the tax directly out of the rent. To make sure tenants are not punished for cooperating, the notice protects a tenant from eviction or a rent increase for three months solely because they complied.
Estate agents and property managers carry their own duty. Where they collect rent on an owner’s behalf, they act as statutory agents. They must check that the tax has been paid before passing money to the owner, pay it themselves if it has not been, and keep proof.
“An unpaid presumptive tax bill can double. ZIMRA can recover the tax plus a penalty of 100% of the unpaid amount.”
The penalty for non-payment is substantial: ZIMRA can recover the unpaid tax plus a penalty equal to 100% of that amount. Keeping accurate rent records and paying on time helps landlords avoid an escalating liability and maintain predictable cash flow.
Not every rental is caught. Homes rented to families are outside the presumptive tax, and in a mixed-use building only the business portion is taxed. Residential rent stays under normal income tax, which we cover in our next article.
There is also a transition rule. Landlords who were already registered and filing their rental income under self-assessment up to 31 December 2025 continue under that system at normal income tax rates, but must still give ZIMRA a schedule of properties and tenants.
The presumptive tax sits alongside other taxes, not instead of them. Where rent is subject to VAT, VAT still applies at 15.5%. Landlords must still collect the 10% informal traders’ tax from eligible tenants, which is a tax on the tenant’s income, not the landlord’s.
Mrs Moyo registered the following week. Her nephew now files the return by the 5th and pays by the 10th, and the hardware store owner has stopped asking questions. Her rental income is smaller than it used to be, but it is safe.
If you own commercial property, the steps are clear: register with ZIMRA, list your properties and tenants, and set monthly reminders for the 5th and 10th. M&J Consultants helps landlords classify properties correctly, manage registration and maintain reliable monthly filing. Contact our team to discuss your property portfolio and enquire for a tailored quote.
Article 2: Shops Downstairs, Flats Upstairs: How Zimbabwe’s Rental Tax Rules Apply to Real Landlords
Focus keyword: rental income tax Zimbabwe landlords · Meta description: Commercial rent now attracts a 15% presumptive tax, while residential rent stays under normal income tax. Four real-life scenarios show what Zimbabwean landlords should pay and when.
Mr Sipho Ncube built his building in Gweru the way many Zimbabwean families do, one floor at a time. Shops occupy the ground floor, while families rent flats upstairs. When he heard about the new presumptive rental tax, his first question was the same one we hear often: “Do I pay 15% on everything?”
The answer is no. And understanding why can save a landlord a great deal of money and worry.
The presumptive rental income tax, effective from 1 January 2026, applies where premises are used for trade, business or an occupation. ZIMRA’s Public Notice 08 of 2026 distinguishes residential portions from commercial premises. In Mr Ncube’s building, the 15% presumptive tax applies to the shop rent, not the rent from the flats. Correct classification helps prevent overpayment and makes each return easier to support.
That does not mean the flat rent is tax-free. Residential rent is declared under normal income tax, where landlords can deduct genuine costs. ZIMRA has not yet published a formula for splitting shared costs in mixed-use buildings, so we advise landlords to keep separate records for the commercial and residential parts from the start.
“Same building, two tax systems. The shops pay a final 15% on gross rent every month; the flats are taxed on profit, once a year.”
Consider Mrs Tendai Dube, who rents out a house in Harare. As a residential landlord, she falls outside the commercial presumptive rental tax and declares rental income in her annual return. She should keep evidence of allowable costs, including council rates, insurance, repairs, qualifying bond interest and agency commission. Good records help her establish the correct taxable rental profit rather than treating all rent received as profit.
Individuals’ income from trade and investments is taxed at 25%, plus the 3% AIDS Levy on the tax, where those rates apply. Mrs Dube’s return for the 2026 tax year is due by 30 April 2027 through TaRMS. Capital improvements, such as adding a bedroom, are generally treated differently from ordinary repairs and may qualify for capital allowances over time. Professional review helps distinguish deductible expenditure from capital improvements.
Now consider Mr Farai Chikwanha, a nurse in Manchester who owns an office block in Bulawayo. A local estate agent collects rent from business tenants and remits the balance to his UK account. Mr Chikwanha assumed that tax compliance was entirely the agent’s responsibility.
Under the rules, he remains liable as the owner and, because he lives abroad, must appoint a representative resident in Zimbabwe. His agent also has statutory duties: confirming that the 15% presumptive rental tax has been paid before releasing rent, paying it where required and keeping proof. Clear arrangements with the agent protect the owner’s income and reduce the risk of disputes or missed obligations.
“For diaspora landlords, the estate agent is now the first line of compliance. No proof of tax, no transfer.”
The last scenario is the one landlords fear most. A Mutare businesswoman, Mrs Rudo Mapfumo, never registered her warehouse units despite receiving commercial rent throughout the year. The unpaid presumptive tax accumulated, and ZIMRA could recover the tax plus a 100% penalty. It could also appoint her tenants to pay the tax directly from future rent. Early registration and regular reconciliation would have made the exposure easier to manage.
There is still a way back. Through Public Notice 55 of 2026, ZIMRA extended Phase 2 of its Voluntary Disclosure Opportunity to 15 December 2026. A landlord who makes a full and truthful disclosure, files outstanding returns and pays the tax or agrees a payment plan may receive a full waiver of penalties. Interest remains payable. For Mrs Mapfumo, acting within the applicable window could materially reduce the consequences of earlier non-compliance.
The mistakes we see most often are avoidable:
· Paying 15% on residential rent that is not subject to the presumptive tax.
· Mixing commercial and residential income in one account with no separate records.
· Assuming the estate agent has “handled the tax” without asking for proof.
· Missing the 5th-of-the-month return because the payment was made by the 10th.
· Waiting for ZIMRA to make contact instead of using the voluntary disclosure window.
Mr Ncube now files a monthly presumptive return for his shops and declares his flats in his annual return. He has stopped worrying about paying 15% on everything, and so should you.
If you are unsure how your property should be classified, or have rental income from 2026 that has not been declared, speak to us before 15 December 2026. M&J Consultants helps landlords separate commercial and residential income, register with ZIMRA and prepare accurate returns. Enquire for a tailored quote based on your properties and compliance needs.
Article 3: Family Trusts in Zimbabwe: How Families Protect What They Have Built
Focus keyword: family trust Zimbabwe · Meta description: A family trust can keep property, businesses and investments together across generations. We explain how family trusts work in Zimbabwe, using real-life examples.
When Mr Tapiwa Mutasa died suddenly at 61, he left behind a house in Borrowdale, a 40-hectare farm in Mazowe, shares in a transport business and five adult children. He also left no will. For the next three years, the family’s energy went into estate administration, valuations and arguments over who should live in the house and who should run the farm. By the time the estate was wound up, the transport business had lost its biggest contracts, and two of the siblings no longer spoke to each other.
Across town, Mr and Mrs Gumbo had built a similar portfolio. Ten years before Mr Gumbo’s death, they placed their rental properties and farm into a family trust. When he died, nothing had to be transferred. The trustees continued collecting rent, paid school fees for the grandchildren and kept the farm running. Mrs Gumbo described the period after his death as “grief, but not chaos.”
The difference between these two families is not wealth. It is structure.
A trust is an arrangement in which a person, the founder, transfers assets to trustees, who hold and manage them for the benefit of others, the beneficiaries. Zimbabwe has no single trust statute. Trusts rest mainly on Roman-Dutch common law, with specific statutes applying to how they are registered and taxed.
In a family trust, the founder is usually a parent or couple, the beneficiaries are the spouse, children and grandchildren, and the trustees are people the family trusts to act fairly. Trustees are often a mix of family members and an independent professional. A trust created during the founder’s lifetime is called an inter vivos trust; one created by a will takes effect on death and is called a testamentary trust.
“The assets stop belonging to one person, who can die, fall ill or fall into debt, and start belonging to a structure designed to outlive everyone in it.”
A trust is not a legal person in the way a company is. Its property is registered in the names of the trustees in their capacity as trustees, and they must manage it under the trust deed and their duties to the beneficiaries.
Families set up trusts for four main reasons.
The first is continuity. Assets in a trust do not form part of the founder’s estate, so they do not need to go through estate administration when the founder dies. Rent keeps flowing, businesses keep trading, and the trustees keep paying the people the founder wanted to support.
The second is protection. Because the founder no longer owns the assets, personal creditors generally cannot attach them. For business owners who sign personal guarantees, this matters.
The third is estate duty. Assets genuinely settled in a trust, where the founder cannot take them back, are generally not subject to estate duty on the founder’s death.
The fourth is family harmony. A well-drafted trust deed sets out in advance who benefits, how decisions are made and what happens when a trustee dies, which removes many of the questions families end up fighting over.
Trusts are not a hiding place, and they are not tax-free. Income earned by a family trust is taxed. Where income is distributed to, or vests in, a beneficiary during the year, the beneficiary pays tax on it; income kept in the trust is taxed in the trust’s hands at individual rates. Moving property you already own into a trust is also treated as a disposal for capital gains tax, so timing and structuring matter.
The biggest risk is treating the trust as if nothing has changed. Courts and ZIMRA can disregard a “sham” trust where the founder still uses trust assets as personal property: banking rent into a personal account, selling assets without trustee resolutions, or ignoring the deed. The protection a trust offers depends on the founder genuinely letting go.
“A trust protects the family only if the family respects the trust.”
The Mutasa children eventually sat down with us to discuss how to protect what remained of their father’s legacy for their own children. Their question was the one every family should ask early: “If something happened to me tomorrow, what would happen to everything I have built?”
If the honest answer is “a long, expensive and divisive estate process,” a family trust may be worth exploring. M&J Consultants helps families assess whether a trust suits their circumstances, identify appropriate assets and establish sound governance for long-term continuity. Contact our team to discuss the benefits for your family and enquire for a tailored quote. In our next article, we explain how a family trust is set up and taxed in Zimbabwe.
Article 4: Setting Up and Running a Family Trust in Zimbabwe: Registration, Tax and the Rules Trustees Must Follow
Focus keyword: how to register a family trust in Zimbabwe · Meta description: A step-by-step guide to setting up a family trust in Zimbabwe, from the notarial deed and Deeds Registry to ZIMRA registration, trust tax returns and trustee duties.
Mrs Nyasha Chirwa, a pharmacist in Harare, decided to set up a family trust after her 50th birthday. She owned two rental properties and a stake in her late husband’s engineering firm, and she wanted her three children and future grandchildren protected. She found a template trust deed online, signed it with two friends as witnesses and assumed the job was done.
It was not. Her deed had never been notarially executed or registered, no assets had been transferred, and ZIMRA had no record of the trust. On paper she had a trust; in law, she still owned everything.
Setting up a trust properly takes a few deliberate steps. Running it properly takes discipline every year.
The foundation is the trust deed. It should name the founder, the trustees and the beneficiaries, or describe them clearly enough to identify them, such as “the children and grandchildren of the founder”. It must state the trust’s purpose, the trustees’ powers, how income and capital may be distributed, how trustees are appointed and replaced, and how the trust may end. A trust without identifiable beneficiaries is invalid.
An inter vivos family trust is created by a notarial deed of trust, executed before a notary public and registered at the Deeds Registry under section 70A of the Deeds Registries Act [Chapter 20:05]. Once registered, the trust receives a registration number. Trustees must be adults with the capacity to contract, and most families appoint two or three, combining family members with an independent professional.
“Registering the deed creates the trust. Transferring the assets is what gives it something to protect.”
Registration alone does not move anything into the trust. Each asset must be transferred: shares by share transfer, cash by deposit into the trust’s own bank account, and immovable property by conveyancing through the Deeds Registry. Transferring property you already own is treated as a disposal for capital gains tax at market value, and a CGT clearance certificate is needed before the transfer is registered. For property bought after 22 February 2019, CGT is 20% of the gain. Where possible, it can be more efficient for the trust to buy new assets directly, so the founder never owns them personally.
Once the trust exists, ZIMRA expects it to behave like any other taxpayer. Every trust needs its own tax identification number, even if it has no income in its first year. In Public Notice 19 of 2026, issued on 30 March 2026, ZIMRA called on all trusts to comply fully with their obligations, including appointing a public officer and filing an annual trust income tax return (ITF12T) by 30 April each year.
Trust income is taxed under the vesting principle in section 2 of the Income Tax Act [Chapter 23:06]. Income that vests in, or is distributed to, a beneficiary during the year is taxed in that beneficiary’s hands. Income that stays in the trust is taxed in the trust’s hands at individual rates. Trustees should therefore minute every distribution and keep records that match what each beneficiary declares, because ZIMRA cross-checks trust returns against beneficiaries’ returns.
Consider the Chirwa Family Trust once it was properly set up. It owns a shop in Avondale rented to a pharmacy and a house in Mt Pleasant rented to a family. The commercial shop rent is subject to the 15% presumptive rental tax, with a return due by the 5th and payment by the 10th of the following month. The residential rent is dealt with through the trust’s annual tax return, with eligible expenses and beneficiary vesting considered as applicable. Keeping separate rental records allows trustees to meet both sets of obligations with confidence.
The trustees’ obligations go beyond tax. They must act together, put beneficiaries’ interests ahead of their own and keep the trust’s money separate from their personal finances. Good practice includes:
· A dedicated trust bank account, with all rent and income paid into it.
· Written resolutions for every major decision, distribution and asset sale.
· Annual financial statements and a register of distributions to beneficiaries.
· Notifying the Deeds Registrar of any change of trustee within one month, as section 70A of the Deeds Registries Act requires.
· Reviewing the trust deed when family circumstances change, such as marriages, births and deaths.
“Most trust failures are not legal failures. They are administrative ones: a missed return, a personal account, a decision nobody minuted.”
Mrs Chirwa started again. Her deed was redrafted and notarially executed, the trust was registered at the Deeds Registry, the rental properties were transferred after the CGT was settled, and the trust was registered with ZIMRA. Today her trustees meet twice a year, the presumptive tax on the shop is paid monthly, and the ITF12T is filed every April.
If you are considering a family trust, or have one that has not been registered with ZIMRA, now is the time to review the position. M&J Consultants helps families assess trust suitability, coordinate deed preparation and registration, plan asset transfers and manage ongoing tax compliance. Our approach supports continuity, clearer trustee accountability and protection of the family’s long-term plans. Contact us to enquire for a tailored quote suited to your trust’s needs.
