- Cameroon subjected informal real estate brokers known as “démarcheurs” to value-added tax on their transactions under the 2026 finance law.
- Finance Minister Louis Paul Motazé defined informal promoters as de facto real estate professionals liable for VAT even without formal accreditation.
- The government ended VAT exemptions on mortgage interest and social housing transactions, deepening taxation of the property sector.
The Cameroonian government expanded its tax base under the 2026 finance law by bringing informal real estate promoters, commonly known as “démarcheurs,” into the group of taxpayers subject to value-added tax on transactions linked to their activities.
The measure formed part of broader fiscal reforms aimed at increasing non-oil revenue for the state.
Finance Minister Louis Paul Motazé confirmed that the tax administration would now treat informal promoters as real estate professionals for VAT purposes. The minister outlined the decision in a circular on the execution of the 2026 state budget, which he signed on December 31, 2025.
“Persons now treated as real estate professionals for VAT purposes include those qualified as de facto property developers, understood as any natural or legal person who, even without formal accreditation, regularly and for profit carries out activities equivalent to those of duly licensed developers,” Motazé said in the circular.
In practical terms, the rule required young Cameroonians who use street advertisements to connect tenants searching for housing with landlords offering rental properties to pay VAT on all fees earned from this activity. The measure also applied to intermediaries involved in the sale of built or unbuilt property who lacked official authorization.
“This measure aims to ensure fairness in tax treatment and to prevent practices that circumvent the regime applicable to formal operators,” Motazé said in the same circular.
However, despite the government’s stated objective to curb unfair competition between informal brokers and licensed real estate operators, the implementation of the reform appeared complex in practice. Authorities faced difficulties in tracking payments made to informal brokers, which limited the traceability of taxable income.
The government also aimed to capture part of the financial flows generated by the activity, which could represent up to 19.25% of the transaction value.
“A specific regulation issued by the minister in charge of finance will define the modalities for applying this provision,” the circular said.
Beyond the new VAT obligation imposed on informal promoters, Cameroon’s 2026 finance law also abolished VAT exemptions on interest from mortgage loans and on the sale and rental of social housing. The decision signaled a broader increase in taxation across the real estate sector.
The reform strengthened the role of VAT as a key source of non-oil tax revenue for the public treasury.
Brice R. Mbodiam
