Uganda Scraps Stamp Duty on Mortgages and Agreements to Ease Cost of Credit

In a major relief for borrowers and businesses, the Government of Uganda has removed stamp duty on mortgages and agreements, a move aimed at lowering the cost of credit and reducing the financial burden on individuals and enterprises.

Finance Minister Matia Kasaija made the announcement during the reading of the Financial Year 2025/26 Budget Speech at Kololo Ceremonial Grounds, emphasising the government’s commitment to boosting private sector growth and making debt more accessible.

“This reform is intended to lower the cost of debt for businesses and individuals. It will also remove the financial burden imposed when entering into agreements,” said Minister Kasaija.

The measure is part of a broader set of tax policy changes aimed at improving the ease of doing business, enhancing tax compliance, and stimulating economic activity.

Other reforms announced include: a 3-year income tax holiday for Ugandan start-ups established after July 1, 2025, capital gains tax exemption on assets transferred to companies fully owned by the individual transferring them, waiver of interest and penalties for taxpayers who voluntarily pay outstanding principal tax by June 30, 2026 and adjustments to excise duties, VAT penalties, and trade-related taxes to encourage local production and value addition.

The removal of stamp duty is expected to spur mortgage uptake, encourage the formalisation of contracts, and boost investor confidence, particularly in the real estate, finance, and SME sectors.

This policy shift comes as Uganda projects 7% GDP growth in FY 2025/26, with key drivers being agriculture, manufacturing, and services. The changes also align with Uganda’s broader strategic goals under the Fourth National Development Plan and the Tenfold Growth Strategy, which aim to transform Uganda into a USD 500 billion economy by 2040.