This article examines how the Somali Regional State (with emphasis on Jigjiga City) levies and collects taxes and fees related to houses, newly constructed buildings, and transfers of urban land. It synthesizes: (a) the national legal framework and regional practice for urban land and property taxation; (b) the typical procedural steps (letters, registration, title/lease recognition) required after purchase of land or construction of houses; (c) the common tax/fee bases and timing of collection; and (d) key reforms introduced at the national level in 2024–2025 that are likely to affect Jigjiga’s practice. Where local (Jigjiga-specific) secondary regulations are unavailable in public sources, the article notes where regional administrations commonly exercise discretion and recommends practical compliance checks for owners.
Urban land and property taxation in Ethiopia is governed by an interplay of federal proclamations, regional statutes and city-level administrative rules. In practice, regional state revenue bureaus and city administrations (such as Jigjiga City Administration) implement taxes, collect fees, and issue the procedural documents (registration letters, tax clearance, receipts) that transfer and regularize land use rights and buildings. Because Ethiopia’s formal urban land regime is a mix of lease-hold (public land) systems and evolving property-tax instruments, both national reform processes (notably a new property-tax framework in 2024–2025) and region/city practices determine what an owner actually pays and when.
Two legal strands matter for Jigjiga

1. Urban land lease and administration frameworks. Historically Ethiopia has regulated urban land primarily through leasehold systems (e.g., Urban Land Lease Holding Proclamation No. 721/2011 and related policy instruments). These govern allocation of urban plots, lease terms, and the requirement to obtain formal lease/possession documents before development. Regional administrations operationalize registration, surveying and cadastre work in their cities.
2. Property tax reforms (2024–2025). At the federal level a Property-Tax Proclamation (drafted in 2024 and widely reported as approved/advanced into law in early 2025) establishes a taxable base and sets formulae for determining “taxable value” (commonly 25% of market or replacement value in the draft) and provides ranges for tax rates on land-rights and buildings. This national-level move—if implemented—creates a more uniform base for regional property taxation while leaving details of rates, assessment processes, and local collection modalities to implementing regulations and regional administrations.

Practically, owners in Jigjiga may face several different levies and fees at different moments:
• Land-use/lease fees (periodic lease payments or ground rent where leases apply). These are often charged according to lease contracts under regional/city lease rules.
• Property tax on buildings and improvements. Under the recent property-tax draft, taxable value for buildings is derived from market/replacement value (with a 25% taxable-value rule noted in the draft) and then multiplied by prescribed percentage rates. Regions/cities may set final tariffs within ranges given by federal law or secondary regulations.
• Transfer fees / registration charges when land or built property is transferred: administrative fees for issuing transfer letters, cadastral updates, and registration in the city/region system. These are typically one-off payments at the time of transfer.
• Development/permitting fees and inspection levies associated with building permits, inspections, and occupancy certificates. Cities charge these when owners apply for building permits or seek occupancy/utility connections.
Although local practice can vary, the following sequence is common across Ethiopian cities and observed in Somali Region reports; Jigjiga follows the same administrative logic:

1. Preliminary verification / purchase contract. Buyer and seller conclude a sale/purchase contract and assemble existing lease/title documents or customary-possession certifications.
2. Application for transfer / issuance of procedural letter. The buyer applies to the City/Region Land/Revenue Office for a formal “transfer letter” or registration note (this is the procedural law letter that recognizes a change in the registered user/leaseholder). The office verifies the contract, checks for encumbrances, and requests payment of applicable transfer fees and any outstanding lease arrears.
3. Cadastral survey/update. If required (for new subdivisions or when boundaries are unclear), the city arranges surveying and updates the parcel registry—owners pay survey and mapping fees.
4. Issuance of title/lease certificate and tax registration. Once payments and documentary checks are completed, the administration issues the formal transfer document (or updates the lease record) and issues a tax registration/assessment notice for recurring property/land taxes or a one-off transfer stamp/fee.
5. Permits for new building works. For new construction, the owner applies for building permits and pays permit, inspection, and connection fees in phases (plan approval, foundation, superstructure, occupancy). Cities tie some permissions to proof of tax registration.
   Because many peri-urban and informal transfers still occur outside formal channels, regional efforts (supported by World Bank and other projects) have emphasized regularizing informal holdings and digitizing payments to increase compliance.
   Public sources and the 2024 draft/proposed property-tax law indicate the following typical bases (note: numbers below are drawn from national drafts and observed regional practice; exact tariffs for Jigjiga are set by the city/regional council and may differ):
   • Taxable value rule: Draft Proclamation uses 25% of market or replacement value as a base for calculating taxable value. This is the “taxable value” from which percentage rates are applied. (See draft wording.)
   • Range of rates (illustrative): The draft suggests land-usage right charges between 0.2%–1% of taxable amount, and taxes on buildings/land improvements between 0.1%–1% of taxable value. These ranges imply that a building’s annual property tax burden depends on local percentage choices within this range and the assessed market/replacement value.
   • Transfer/registration fees: Usually fixed administrative fees plus percentage-based stamp duties vary by region; they are collected at transfer/registration. City administrations often supplement with cadastral and survey fees.
   Important practical note: Until regional implementing regulations and city tariff tables are published after a federal proclamation, owners in Jigjiga should consult the City Revenue Office to confirm the exact rate schedule and any transitional reliefs or exemptions (e.g., low-value residential relief, social housing exceptions).
   • Annual property taxes: Property taxes on buildings/land improvements—once assessed—are normally annual obligations, payable according to the schedule set by the regional/city revenue authority (commonly quarterly or annually with specified deadlines). The draft property tax establishes the basis and allows regional bodies to set collection schedules.
   • Lease payments / ground rent: These are charged according to lease contracts—some are annual, others on different agreed schedules. Arrears are commonly enforced before any transfer.
   • Transfer and registration fees: One-off payments at the moment of transfer/registration—collected before issuance of the official transfer letter.
   • Permit-related payments: Paid in phases as permits and inspections occur during building.
   City administrations in Somali Region (including Jigjiga) have been moving toward modernized payment channels (mobile/internet payments) and centralized revenue centers to reduce transaction costs and improve compliance — an initiative rolled out in 2024 in several sub-city administrations.
   • Federal property-tax instrument (draft/approved in early 2025): A national property tax framework reported in early 2025 establishes taxable-value concepts (the 25% rule) and sets rate ranges and formulas for consistent assessment across regions. If fully implemented and complemented by implementing regulations, this will standardize the taxable base while allowing regions to operationalize assessments and collections locally. Regions (including Somali Regional State) will need to pass implementing rules and tariff schedules consistent with the proclamation.
   • Digitization and modern collection systems (2024 onward): Several Somali Region localities, including Jigjiga’s sub-city administrations, introduced modernized taxation systems in 2024 (mobile/internet payment options, revenue center reforms) to simplify payment and increase coverage. This administrative modernization reduces in-person visits and can change the timing and methods by which taxes are enforced and receipts issued.
   Implication: Owners in Jigjiga should expect clearer nationally standardized assessment rules combined with city-level tariff schedules and a faster electronic payment process — but they should also expect a transition period while cadastral and valuation systems are aligned to the new property-tax base.
   • Common compliance problems: Informal transfers not registered with the city; missing cadastral information; outstanding lease arrears; and confusion over valuation methods. These issues can delay issuance of the procedural transfer letter and expose buyers to back-dated assessments.
   • Dispute resolution: Regional land tribunals, city revenue appeals boards or administrative review mechanisms typically handle valuation or assessment disputes; buyers should preserve contracts, receipts and any seller tax-clearance certificates.
   • Safeguards recommended for owners: Demand written tax-clearance from sellers, seek a formal transfer letter before occupying or building, and obtain a cadastral sketch and registration receipt. Use the city’s e-payment and official receipt systems where available to avoid informal payments.
   Public, machine-readable publication of Jigjiga-specific tariff tables and procedural templates is limited. Much of what buyers encounter depends on (a) the City Administration’s internal council decisions on rates and schedules, (b) Somali Regional implementing regulations following federal proclamations, and (c) local administrative practices (e.g., whether the city requires additional “clearance” from customary authorities). Researchers and practitioners should therefore treat national proclamations as the legal backbone while verifying the city’s revenue office notices and tariff schedules for concrete obligations.
6. Before signing, request seller’s tax-clearance and copies of existing lease/title documents.
7. Obtain a short legal opinion or visit the City Land/Revenue Office to confirm required transfer steps, expected fees, and timing.
8. Budget for: transfer fee + cadastral/survey fees + any outstanding lease arrears + building-permit fees + anticipated annual property tax (ask for an estimate from the revenue office).
9. Use official e-payment channels and obtain receipts; register property in the city tax registry immediately after transfer.
10. If confused about valuation or tariff, seek the revenue appeals procedure or a lawyer familiar with regional land practice.
    Jigjiga’s practice for collecting taxes on houses, new buildings, and transfers of land is shaped by both longstanding urban-land lease regimes and a new wave of national property-tax reform. The 2024 draft/proposed property tax law (and reports of approval in early 2025) creates a clearer taxable base (the 25% taxable-value concept) and rate ranges; however, implementation and precise rates remain the outcome of regional/city regulations and administrative modernization. Owners must therefore combine attention to the new national rules with verification of Jigjiga City Administration’s tariff tables, procedural letters, and e-payment systems to ensure full legal compliance and avoid dispute.

Mohamed is based in Jigjiga, Somali Region, He is Admas University Alumnus. Somaliland, Hargeisa Branch.He is an MBA holder, and wrote hundreds of scholarly articles, essays and conducted researches. He is small business owner and university lecturer. He can be reached at: He can be reached via Xareedmo45@gmail.com