Interest on home loans exempt from VAT in 2016

In the Finance Act 2016, the Cameroon government aims to facilitate access to housing through tax incentives.

Thus, it has proposed that from the year 2016, it will exempt the payment of VAT interest on home loans and transactions in social housing.

This is to encourage individuals and economic operators to engage in social housing, eliminating the cost structure of certain tax items that have often contributed to discouragin potential buyers or real estate industry operators.

The aim is to lower costs and make social housing more affordable in the country.

As a reminder, with a population of over 22 million inhabitants, Cameroon is facing a deficit of social housing officially estimated at nearly 1.3 million units.

A 10 000 social housing construction project was launched 5 years ago but has not yet been achieved over 20%.