Ethiopia Requires Foreigners to Put Up $150,000 to Own a Home

August 12, 2026
By Mintesinot Nigussie

Ethiopia has set a minimum financial threshold of 150,000 US dollars for foreign nationals seeking to own residential property in Addis Ababa and Sheger City, under a new directive that also places foreign property ownership under tighter government and banking oversight.

The threshold is part of a new regulatory framework governing foreign residential property ownership, which requires eligible buyers to deposit the required funds with a bank and obtain approval from the Ministry of Urban and Infrastructure before acquiring a home or a plot on which to build one.

The minimum requirement varies by location. Foreign nationals seeking residential property in several regional states and Dire Dawa must demonstrate at least 120,000 US dollars, while the threshold is 100,000 US dollars in Afar, Benishangul-Gumuz and Gambela. Buyers must deposit any additional amount required if the property costs more than the amount registered for their permit.

The directive gives the Ministry of Urban and Infrastructure responsibility for working with the National Bank of Ethiopia on how foreigners can transfer abroad money obtained in connection with residential property ownership. That provision brings foreign-exchange management directly into the implementation of the property-ownership regime.

The funds deposited by a prospective buyer are subject to banking controls. The directive provides for the foreign currency to be converted into birr at the prevailing exchange rate and held in a restricted account in the foreign national’s name. The funds can be released when the buyer purchases a residential property or secures a plot for residential construction, subject to authorisation from the ministry.

Foreign nationals are limited to owning one residential property under the framework.

The government has also introduced financial penalties for violations. A foreign national who becomes a residential property owner or obtains a residential construction plot without meeting the prescribed minimum capital requirement faces a fine of between 500 and 2,000 US dollars.

The penalties rise for other breaches. Using a residential property for an unauthorised or illegal purpose can result in a fine of between 1,000 and 3,000 US dollars, while owning a home or residential construction plot without ministry approval can attract a fine of between 2,000 and 5,000 US dollars. Submitting false evidence to obtain ownership can result in a fine of up to 5,000 US dollars.

The directive establishes a monitoring system for foreign-owned residential property. The ministry will maintain records of foreign property owners, the homes they own, their locations and whether the properties were acquired through direct purchase or an auction process. The framework also provides for the ministry to coordinate with the Immigration and Citizenship Service on entry and multiple-entry visas of up to five years for foreign residential property owners and their children.

The directive excludes government-subsidised condominium housing, homes fully financed by government or publicly collected funds for non-profit purposes, housing constructed with government, private or non-governmental organisation support, and cooperative housing from foreign ownership.

Source: FSX Business News