Diaspora sellers are less discussed than diaspora buyers, but the question arises constantly: a change of plans, a better opportunity, or an inheritance to be converted , can the sale be completed properly while you are abroad? It can, and the difference between a smooth closing and a costly one is preparation. This article sets out the process, the tax that follows a sale, and the safeguards that matter at a distance.
What steps does a remote sale involve?
- A current official search on the title, confirming ownership, encumbrances and any arrears
- A written agency agreement if an agent is engaged , scope, commission and authority stated precisely
- Valuation and price agreement, followed by a sale agreement recording the terms and the completion timetable
- Execution of the transfer documents , where you cannot travel, through a power of attorney prepared and registered for the purpose
- Payment of capital gains tax and discharge of any charge or rates and rent arrears before registration
- Registration of the transfer and handover of proceeds to your nominated account
What tax applies when you sell?
Transfers of property in Kenya attract capital gains tax on the net gain, which the seller must account for , the return and payment are prerequisites to registration, and the Kenya Revenue Authority publishes the current rates, reliefs and procedure. Sellers abroad should also confirm how the gain is treated in their country of residence and keep the completion documents for both filings. Clearances for land rent and county rates should be obtained early, since arrears discovered at completion delay everything.
How can a diaspora seller reduce the risks?
Insist that the purchase price moves through a stakeholder arrangement, typically an advocate’s client account, rather than directly to a personal account, and that the balance is only released against registration. Verify the buyer’s identity and capacity yourself or through your advocate, not only through the agent. And treat the power of attorney with the same care you would the title itself , appoint someone trustworthy, define the powers narrowly, and keep certified copies with the completion file. Our real estate and conveyancing team acts for sellers abroad from instruction to registration, and our practice areas page describes the wider transactional work.
For guidance on your specific situation, contact CS Advocates LLP , call, WhatsApp, or book a confidential consultation at our Westlands, Nairobi office.