Heavy Taxes, Thin Margins: Why Uganda’s Rental Tax Policy is Testing Real Estate Growth Potential Uganda’s real estate sector is growing, but its tax framework may be slowing it down. High borrowing costs, capped deductions, and multiple levies are squeezing corporate landlords, pushing up rents and discouraging investment. Experts warn that without reform, the sector’s long-term contribution to jobs, housing, and revenue could suffer significantly.

On the surface, Uganda’s real estate sector appears to be thriving. Cranes dot Kampala’s skyline, mortgage uptake is rising, and Government revenue from corporate and rental income taxes continues to grow. But beneath this apparent progress lies a quieter strain—one that tax experts warn could slow the sector’s momentum if left unaddressed. Patricia Kiggundu, a Tax Manager at PwC Uganda, likens the situation to the old parable of the goose that laid golden eggs. Real estate, she argues, is steadily contributing to the economy, but excessive or poorly structured taxation risks killing off its long-term potential. Recent figures show why…