Do you dream of investing in a sunny, stable, and welcoming country? Senegal checks all the boxes. Driven by steady growth and a reassuring legal framework, it attracts more and more foreigners every year. In 2023, France accounted for 16% of foreign direct investment. Today, buying a home in Dakar or along the Atlantic coast is no longer just for insiders. However, you still need to understand the laws. In this article, we’ll give you the essential guidelines for investing safely in Senegal.
A legal framework favorable to foreign investors
Senegal has chosen to attractforeign direct investment ( FDI). The Investment Code guarantees foreign nationals the same rights as Senegalese citizens. In practical terms, this means you can purchase real estate in your own name without needing a local partner. Note that certain activities require specific permits (such as the fish trade, transportation, or baking). Real estate is exempt from this requirement. There are two options for purchasing property in Senegal:
- The title deed, which grants you full ownership of the property,
- A long-term lease, valid for 18 to 50 years. It is often used by foreigners because it is quicker to obtain.
In both cases, it is essential to use a licensed notary. The notary authenticatesthe deed of sale and registers the transaction with the Bureau of Real Estate. This visit to the notary provides you with legal protection and gives your purchase an official framework.
Should I buy in my own name or start a company?
This is a question many foreigners ask themselves. Buying in your own name is the simplest and fastest solution if you’re looking for a second home or a small rental investment. On the other hand, forming a company ( SARL or SA) may be more advantageous if you’re planning multiple transactions or a large-scale project. This legal structure allows you to:
- To limit your liability,
- To optimize your local taxes,
- And to facilitate the transfer or future resale.
In Senegal, there is no minimum capital requirement to form a limited liability company (SARL). To file your application, you must complete the registration procedures. As a foreign national, you will need to provide a criminal record check from your country of origin. If you would like assistance with these procedures, we recommend that you contact the Business Creation Office (BCE), which is part ofAPIX.
Understanding Senegalese Taxes and Purchase-Related Fees
As a foreign national, you are subject to the same fees as U.S. citizens. You should expect to pay approximately 10% of the sale price in closing costs.
The main expenses are:
- Registration fees: 5%,
- Notary fees: 2%,
- 18% VAT on fees.
If you purchase a new property, here’s some good news: you’re exempt from property tax for 5 years starting from the date of your investment. This small tax benefit can make a real difference in your return on investment. As a foreign investor in Senegal, you’re also protected by bilateral treaties. To date, the country has 29 bilateral investment treaties.
Investing in Senegal: How to Transfer and Secure Your Funds?
Senegal is a member ofthe West African Economic and Monetary Union ( UEMOA). This monetary framework ensures the stability of the CFA franc, which is pegged to the euro, and facilitates the repatriation of income. It is perfectly legal to transfer funds from abroad to purchase real estate, provided that the source of the funds can be verified.
Here are our recommendations:
- Open a CFA franc account at a local bank to pay fees and taxes,
- Prepare a complete set of banking documents (passport, proof of address, proof of income),
- Ask your notary to provide you with a clear breakdown of the amounts to be paid,
- In the event of a resale, your capital gains may be repatriated after paying any taxes due.
If you’d like to take out a loan, we suggest you contact Senegalese banks to find out their interest rates.
Choose a trusted partner to ensure the success of your project
Investing in real estate abroad requires expertise, local knowledge, attention to detail, and a strong network. That’s where choosing the right real estate developer in Dakar makes all the difference. A reputable professional should be able to:
- Explain each step of the process to you,
- To present you with secure and compliant projects,
- We’ll help you monitor the construction site, even from a distance.
At REALITES SENEGAL, our teams are here to support you in finding the property that’s right for you. As a subsidiary of an international group, we strengthen the ties between European and Senegalese investors and trusted local partners.
Conclusion: What if now were the right time for you to get into real estate in Senegal?
In summary, it is entirely possible for a foreigner to invest in Senegal. The buyer will own 100% of the property, provided they complete all the necessary legal procedures. However, it is strongly recommended that you seek professional guidance. With the help of professionals, you’ll be able to follow the key steps for a successful real estate investment. The REALITES team, based in Dakar, supports its clients from start to finish: from the initial contact through to the handover of the property.
Source: Tresor Economie
Learn more: our apartments for sale in Dakar.