Zimbabwe's rental market is becoming more formal. Landlords who let property to businesses now have another tax to think about. From 1 January 2026, Zimbabwe introduced a 15 percent Presumptive Rental Income Tax. It applies to rent from premises used for trade, business or an occupation.
The tax was brought in by the Finance Act, 2025 (Act No. 7 of 2025). It sits in section 36R and the Thirty-Ninth Schedule of the Income Tax Act. On 5 February 2026, ZIMRA issued Public Notice 08 of 2026, which explains how the new system works.
For landlords, especially those collecting rent in US dollars, the details matter. You need to know the difference between residential and commercial lets. You also need to know how to register and when to pay.
What Is The New Rental Income Tax?
The Presumptive Rental Income Tax is charged at 15 percent of gross rent on qualifying commercial lets. Unlike ordinary income tax, no deductions or allowances are allowed. It is a final tax. It cannot be claimed as a credit or set off against any other income tax.
Take a Harare landlord who rents a property to a company for US$2,000 a month for use as offices. The tax would be:
US$2,000 × 15 percent = US$300.
The landlord would owe US$300 for that month. The tax is worked out on the gross rent. This means the landlord cannot first subtract costs such as repairs, insurance, management fees or loan repayments.
USD Rent Does Not Automatically Mean 15 Percent Rental Tax
This is one of the most important points for property owners. Say a landlord receives US$800 a month from a family living in a house. That landlord does not owe the new 15 percent tax just because the rent is paid in US dollars. ZIMRA's guidance says the tax applies where the tenant uses the premises for trade, business or an occupation. Parts of a property used as homes are excluded.
So landlords need to look at how the property is used, not the currency of the rent. A mixed-use building is a good example. Say a landlord has offices on the ground floor and flats above. The offices can fall under the presumptive tax. The flats do not.
However, landlords should not assume that residential rent is completely tax-free. The exclusion only applies to this new tax. Landlords may still have other income tax duties, depending on their situation.
Who Needs To Register?
ZIMRA requires anyone who leases land or buildings to tenants running a trade, business or occupation there to register. This includes property owners. It also includes certain lessees and sub-lessees who receive rent.
Zimbabweans in the diaspora who own qualifying rental property at home are also covered. Non-resident owners must appoint a representative who lives in Zimbabwe.
According to the notice, landlords already receiving qualifying rent when the tax began were required to register by 1 January 2026. Anyone who becomes a registrable landlord after that must apply within 30 days.
Failing to register does not make the tax go away. ZIMRA states clearly that not registering does not free a landlord from paying.
How TaRMS Fits Into The Process
ZIMRA's Tax and Revenue Management System (TaRMS) has replaced its old domestic tax system. It gives taxpayers a Self-Service Portal for registration and other tax tasks.
New taxpayers register online through the portal. They create an account, enter their details, fill in the forms and upload supporting documents. Once the application is approved, ZIMRA issues a Taxpayer Identification Number (TIN).
Existing taxpayers have also been moved onto TaRMS. ZIMRA provides a way for them to claim their existing records through the portal.
For landlords, the key lesson is that owning property and collecting rent should no longer be treated as an informal arrangement. Make sure your ZIMRA records reflect your rental activity accurately.
What Information Should Landlords Keep?
The rental tax rules require details about the properties being leased and the tenants in them. Landlords should keep an organised rental file with:
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The property's physical address
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The tenant's name
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The tenant's national ID number or TIN, where applicable
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The lease agreement
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The monthly rent
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The dates rent was received
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Proof of payment
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Whether the property is used as a home or for business
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Copies of rental tax returns and payment confirmations
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Estate agent or property manager records, where applicable
ZIMRA's Presumptive Rental Income Tax return asks for the tenant's name and ID details, the property address, the rent and the tax due. For landlords with several properties, keeping these records on a computer makes monthly compliance much easier.
The 5th And 10th Are Important Dates
One of the biggest changes is that this tax is not a once-a-year exercise. The return is due by the 5th day of the following month. Payment is due by the 10th day of the following month.
For example, say a landlord receives US$3,000 in qualifying commercial rent during September:
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Gross rent: US$3,000
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Tax at 15 percent: US$450
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Return deadline: 5 October
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Payment deadline: 10 October
This monthly cycle means landlords should not wait until the end of the year to sort out their rental income.
There is also an update on filing. In September 2026, ZIMRA's Public Notice 50 of 2026 announced that new 2026 tax law changes had been loaded onto TaRMS. These include the Presumptive Rental Income Tax return. Taxpayers who had been filing manual returns were asked to complete the same returns in TaRMS. Landlords should check ZIMRA's latest instructions to make sure their filings are recorded correctly.
What Happens When An Estate Agent Collects The Rent?
Landlords who use estate agents or property managers should not assume that handing over rent collection removes their tax duties. ZIMRA treats an estate agent, intermediary, trustee or certain sub-lessees who receive rent as a statutory agent.
If the landlord has not paid, the agent must pay the tax, send it to ZIMRA and issue a withholding certificate. ZIMRA also tells estate agents to check whether the tax has been paid before paying out any money, and to keep proof.
This matters a great deal for landlords living outside Zimbabwe. A diaspora owner who relies on a Harare property manager should agree clearly who handles registration, monthly returns, payments and record keeping.
What Happens If The Landlord Does Not Pay?
The consequences of ignoring the new tax can be serious. Public Notice 08 of 2026 says that failing to pay can lead to recovery of the unpaid tax plus a penalty equal to 100 percent of it. For example, if a landlord built up US$2,000 in unpaid tax, a further US$2,000 penalty could be charged. Other amounts may also become payable.
ZIMRA can also appoint the tenant of a non-compliant landlord as its agent. The tenant can then be told to pay the tax out of future rent. The notice protects such a tenant from eviction or a rent increase for three months, where the only reason is that they complied with ZIMRA. So ignoring the tax does not keep the matter between the landlord and ZIMRA.
ZIMRA is also looking harder at rental income. In 2026, it has asked residential estates in Harare for the names of owners and tenants under Section 39 of the Income Tax Act.
Existing Taxpayers Have A Transitional Distinction
Not every landlord is treated in exactly the same way. Some landlords were already registered, filing returns and paying tax under self-assessment up to 31 December 2025. ZIMRA says they continue to declare that rental income through self-assessment at normal income tax rates. They must also submit a schedule of their properties and tenants.
By contrast, landlords who were not registered with ZIMRA before 31 December 2025 must register and pay the presumptive tax from 1 January 2026. So an existing landlord should first check their previous ZIMRA status before signing up for a new tax.
What Landlords Should Do Now
Compliance is much easier if you treat rental admin as a monthly task rather than an occasional tax chore. A landlord with business tenants should:
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Confirm whether each property falls under the presumptive rental tax.
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Check their ZIMRA registration and TIN details.
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Register through the TaRMS Self-Service Portal where required.
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Keep an up-to-date list of properties and tenants.
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Record the gross rent actually received each month.
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Calculate the 15 percent tax on qualifying commercial rent.
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Meet the 5th-day return and 10th-day payment deadlines.
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Keep proof of returns and payments.
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Agree duties with estate agents or property managers in writing.
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Get professional tax advice where a property has mixed home and business use, or where several taxes apply.
Landlords should also remember that this tax does not replace other taxes. ZIMRA says VAT still applies separately where rent is subject to VAT. Other tax duties may also remain.
A More Formal Rental Market
Zimbabwe's rental market is moving away from informal deals where landlords simply collect rent and keep their own records. TaRMS is part of a wider ZIMRA effort to move registration, returns, payments and taxpayer accounts online. The system uses TINs to identify taxpayers. It aims to cut manual work and improve how domestic taxes are run.
For landlords, the message is fairly simple. Know what type of tenant you have. Know how the property is used. Keep accurate records. Do not miss the deadlines.
If you collect US$1,000 from a family living in your house, do not assume the new 15 percent tax applies. But if you collect US$1,000 from a business using the property for trade, the picture is very different. As the property market becomes more formal, understanding the tax on rent is becoming as important as setting the right rent, finding a tenant or maintaining the property.
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