Selling Land to a Foreign Buyer: The Lease Route

Can I sell my land to a foreigner?

Not outright. Section 41 of the Land Act (Cap. 236, as at 31 December 2023) says that, subject to Article 237(2)(c) of the Constitution, a non-citizen may acquire a lease in land (subsection 1), a lease granted to a non-citizen shall not exceed ninety-nine years (subsection 3), and a non-citizen shall not acquire or hold mailo or freehold land (subsection 4). So your sale to a foreign buyer is really the grant of a lease out of your title. You stay the owner of the reversion. The buyer gets the right to use the land for the term. A 2022 Daily Monitor article by a Kampala lawyer makes the same point and says that 99 years is usually enough for a developer to build and recover the investment.

That is a lawyer's commercial view, not a rule. Many foreign buyers will accept a lease if you explain it early. Those who insist on freehold are not buyers you can serve. The full buyer-side explanation is on Can foreigners own land in Uganda?. For the sale route in general, see Sell Your Land, House or Forest in Uganda.

Who counts as a foreign buyer?

The word is "non-citizen", and section 41(7) defines it widely. It covers:

• 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 are made by non-citizens;
• a company in which the shares are held in trust for non-citizens; and
• a company incorporated in Uganda whose articles do not contain a provision restricting transfer or issue of shares to non-citizens.

The last point catches many Ugandan-owned companies. A Daily Monitor article of 8 February 2022 reports that the Court of Appeal in the Biyinzika case held that a foreign company cannot own mailo, freehold or customary land, and that a company is treated as foreign if its articles do not restrict share transfers, even where Ugandans hold the majority. That is a lawyer's account of the case, not our reading of the judgment, so ask your advocate to check the buyer's articles before you sign.

Citizens of Kenya, Tanzania, Rwanda and other countries are not Ugandan citizens, so the same rules apply to them. Ugandans abroad who still hold Ugandan citizenship are different: see Selling to a Diaspora Buyer by Video and Attorney.

How do I grant a 99-year lease?

Treat it as a lease, not a sale in disguise. Steps:

1. Confirm you can grant it. You must be the registered owner of the land, or have the consent of co-owners and your spouse where the land is family land (Land Act s.40). If a bank holds a charge, you need to deal with it first.
2. Agree the terms: the term (up to 99 years), the premium paid at the start, the annual rent and who reviews it, what the buyer may build or farm, and what happens at the end.
3. Have an advocate draft the lease and attach the survey plan.
4. Sign and register it. Section 41(2) says a lease of five years or more acquired by a non-citizen shall be registered in accordance with the Registration of Titles Act. An unregistered lease is a weak position for both of you.
5. Receive the premium in cleared funds before registration is released.

The Land Act text we read does not set a premium or rent, and we found no official benchmark, so these are for negotiation. Give your price in UGX first and, if the buyer wants it, a US dollar equivalent at a stated rate on a stated date. Fixing the exchange rate in the agreement stops later disputes.

What should the premium and rent cover?

A lease has two money parts. The premium is a lump sum paid at the start, and it is where most of the value sits. The rent is an annual sum that reminds the parties of the arrangement and gives you something to review. A buyer who thinks a lease is worth less than ownership will pay less, so you may need to price below the figure you would ask a citizen for the same land. As a reference for what citizens ask, our 3 November 2026 listings show 21 plots with a median ask of about UGX 155 million, and 38 comparable farm listings with a median of UGX 13 million an acre. These are asking prices for ordinary sales and not lease prices.

Put in the lease who pays for the survey, registration and stamp duty, and what the buyer must do to keep the lease alive, such as pay rent on time and build by a date. If the buyer wants to sell the lease later, say whether you must consent.

What do I need to check about the buyer?

Check identity and funds before you share your title. For an individual, ask for a passport and a live video call. For a company, ask for its registration papers, its articles and who controls it, because the section 41(7) test turns on control and on the articles. URA says buyer and seller each need a Tax Identification Number for land worth UGX 10 million or more, and a company needs one at any value. Take payment through a bank, to your account or your advocate's client account, and never to an agent.

If you are selling a large block, read sell large land and how to sell farmland in Uganda for how to package it. If your land is not selling to citizens, read Why Your Land Is Not Selling before turning to foreign buyers. For sellers who live overseas, see Selling Land in Uganda From Abroad. When you are ready, list your land free or list your property free. This page is general information as of November 2026, not legal advice.

Frequently asked questions

Related guides

• Sell Your Land, House or Forest in Uganda
• Selling Farmland in Uganda: Price, Papers, Buyers
• Selling a Large Land Parcel to Serious Buyers
• Selling to a Diaspora Buyer by Video and Attorney
• Selling Land in Uganda From Abroad
• List Your Land on Land & Property