Zimbabwe’s rental market is set for major regulatory upheaval following Finance Minister Mthuli Ncube’s announcement of stringent new rental income tax measures. Unveiled in the 2026 National Budget Statement delivered on 27 November 2025, the reforms introduce quarterly reporting obligations that will require landlords hosting business tenants to submit detailed tenant registers, occupancy lists and rental schedules to the Zimbabwe Revenue Authority (ZIMRA). The rules take effect on 1 January 2026.
Minister Ncube argued that a substantial portion of business activity conducted within rented buildings has continued to evade tax scrutiny. Existing legislation, he said, has not been robust enough to hold landlords accountable for undeclared rental income. The new framework builds on the rental income tax introduced in the previous year’s budget, which targeted properties converted from residential to commercial use and imposed a 25% tax rate.
However, the latest budget statement makes it clear that those earlier provisions did not adequately capture the scale of untaxed commercial activity. According to the minister, “significant business activities… continue to escape the tax net,” prompting a more aggressive and continuous reporting model.
Under the new system, landlords effectively become tax compliance agents for the state. Every quarter, they must provide ZIMRA with a full list of tenants conducting any kind of business activity, along with the amounts paid in rent. Landlords must also ensure mandatory registration of their commercial and non-commercial properties where business operations take place.
Non-compliance will carry substantial penalties. Property owners who fail to register or withhold the required taxes, such as the 10% presumptive tax on informal sector operators, will face penalties equivalent to the rental income tax and presumptive tax owed, including interest. In a more forceful measure, ZIMRA may also temporarily close businesses operating from non-compliant properties until full compliance is achieved.
These changes introduce significant administrative demands for landlords, who must now maintain precise records and report regularly. Informal businesses renting space may also feel the financial impact, as landlords are mandated to withhold a portion of rental payments.
