Owning Land Through a Company in Uganda

Can a foreign-owned company own land in Uganda?

Not freehold or mailo land. Section 41 of the Land Act (Cap. 236, revised edition as at 31 December 2023) says a non-citizen may acquire a lease, a lease must not exceed 99 years, and a non-citizen shall not acquire or hold mailo or freehold land. A company is treated as a non-citizen if it falls within the Act's definition, which is set out below. Older editions of the Act number this provision as section 40, so always say which edition you are citing.

This matters to diaspora buyers who are citizens and to foreign investors alike. A citizen who buys in their own name holds the land as a citizen. A foreign-controlled company buying the same land cannot. If you are a foreigner, also read can foreigners own land in Uganda.

What is the controlling-interest test?

Section 41(7) of the Land Act defines "non-citizen" to include:

• a person who is not a citizen of Uganda;
• a corporate body in which the controlling interest lies with non-citizens;
• a body without shares where decisions lie with non-citizens;
• a company in which shares are held in trust for non-citizens; and
• a company incorporated in Uganda whose articles of association do not contain a provision restricting transfer or issue of shares to non-citizens.

Section 41(8) says "controlling interest" means, for a company with shares, that the majority of shares are held by persons who are not citizens, and for a company without shares, that decisions are made by a majority of members who are not citizens.

The last item catches many people out. Even where Ugandans hold most shares, a company whose articles do not restrict transfers of shares to non-citizens is a non-citizen under the Act. Having a Ugandan shareholder on paper is not enough.

What did the Court of Appeal say?

The Daily Monitor reported on 8 February 2022 on the Court of Appeal decision in Biyinzika Enterprises Limited and 2 Others v Biyinzika Farmers Limited, decided the year before. As the Monitor reports it, a foreign company, like an individual non-citizen, cannot own land under mailo tenure, and for land-law purposes a company counts as foreign if its articles do not restrict share transfers to foreigners, even when Ugandans hold the majority of shares. The article implies the same position for freehold and customary tenure. The report gives no exact date for the decision, so read the judgment on ULII before relying on it.

The practical lesson is to check a company's articles, not only its shareholder list, before you buy land through it or from it. Ask the seller for the certificate of incorporation, the memorandum and articles, and current share records.

Do companies need a TIN to buy land?

Yes. URA's Taxman publication says the TIN requirement applies to land transactions of UGX 10 million or more for the buyer and seller, effective 6 December 2021, and that for companies a TIN is mandatory even when the amount is below UGX 10 million. A TIN is free and can be obtained through the URA portal or a Domestic Taxes office. URA says this does not mean the transaction itself is taxed, although other taxes can apply, for example on sales of business assets.

If the company later lets the land, rental income tax applies. As of November 2026, URA's guide says companies may deduct up to 50% of gross rent for expenses and are taxed at 30% on the rest. For the other costs, see Cost of Buying Land in Uganda.

Should I buy land in a company name?

A company can make sense, but it is not automatically better. Reasons people use one:

• Several investors. Shares can show who owns what, instead of joint names on a title.
• Continuity. A company keeps existing when a shareholder dies, so the land may not need to be re-transferred, though shares still pass under succession law and a will. Ask an advocate how this works for your family.
• Separation. Business land can be kept apart from personal property.

Reasons to be careful:

• Extra cost: incorporation, annual filings and tax returns.
• The non-citizen test above, if any shareholder is foreign.
• Lenders look at the company's accounts, not only the land. See Loans to Buy Land in Uganda.
• Moving land into a company later can bring more stamp duty and fees.

For a long-term holding or a joint development, compare the company route with a joint venture land structure. Diaspora readers weighing a rental against a home can also use rent or buy Kampala.

What about trees and forest land?

On Land & Property, a forest listing sells the standing trees only. The land is not included, and the harvesting deadline is negotiable with the seller. Because you are buying trees and not the land, the land-holding rules in this page are different from a land purchase, but a foreign buyer should still take advice. See can foreigner buy forest.

When you are ready to look at what is for sale, browse plot listings or ask our team on WhatsApp or by email. Always use an advocate for the structure. This page is general information, not legal advice.

Frequently asked questions

Related guides

• Loans to Buy Land in Uganda
• Joint Venture Land Development in Uganda
• Can Foreigners Own Land in Uganda? Leasehold Rules
• Cost of Buying Land in Uganda: Every Fee, Dated
• Buying Trees in Uganda From Abroad Safely