QUICK ANSWER
- Yes. Since 2025 a foreign national can own one residential house in Ethiopia.
- Minimum investment: $150,000 in Addis Ababa and Sheger City, $120,000 in most regions, $100,000 in Afar, Benishangul-Gumuz and Gambella.
- You need a permit from the Ministry of Urban and Infrastructure first, and the money must come from abroad through a bank.
- The home must be used as a residence — no commercial use.
For decades foreigners could not own property in Ethiopia. Proclamation No. 1388/2025, followed by an implementing Directive in 2026, changed that: a foreign national can now own a home. Here is who qualifies, what it costs and the steps involved.
What changed
Proclamation No. 1388/2025 lets a foreign national own one residential house. You own the building; the land stays under Ethiopia’s leasehold system, as it does for Ethiopians. The government can allow more than one house in the national interest, and foreign investors with an investment licence have their own rules.
How much you must invest
| Location | Minimum for one house |
|---|---|
| Addis Ababa and Sheger City | US$150,000 |
| Most other regions and Dire Dawa | US$120,000 |
| Afar, Benishangul-Gumuz, Gambella | US$100,000 |
The money must be brought from abroad — you cannot use a loan from an Ethiopian bank or money raised in Ethiopia.
The steps
- Apply for a permit from the Ministry of Urban and Infrastructure, with valid ID, a clean criminal record, proof of the capital deposit and any security clearances. The permit is valid for one year.
- Deposit the money in foreign currency through an Ethiopian bank. It is converted to birr and held in a blocked account; it is released to the seller only with the Ministry’s authorization.
- Find and agree the property. If the final price is higher than the amount registered, the difference must also be deposited in US dollars first.
- Complete the purchase and register it. Notify the Ministry within 30 working days, submit the title documents and return the permit certificate.
What you can and cannot do
- You can live in the home and rent it out as a residence.
- You cannot use it for commercial purposes, or buy government-subsidised condominiums, cooperative or non-profit housing.
- Taking sale proceeds out of the country follows National Bank of Ethiopia rules.
Penalties for skipping steps
Buying without the Ministry permit can bring a fine of US$2,000–5,000; not meeting the minimum capital, US$500–2,000; using false evidence, US$3,000–5,000. Anyone who knowingly helps a non-compliant purchase can be fined 30,000–50,000 ETB. Work with a lawyer and a licensed agent.
What about Ethiopian-origin foreigners?
Foreign nationals of Ethiopian origin (holders of the Yellow Card) have long been allowed to own property on the same terms as Ethiopians, and are not limited by this law.
Apartments and houses for sale
Frequently asked questions
No. Land in Ethiopia is publicly owned and held on leasehold. A foreigner can own the residential house and hold leasehold rights for residential construction.
No. Foreign buyers must fund the purchase from abroad, not from Ethiopian banks or local sources.
Yes, as a residence. Commercial use is not allowed.
The law links qualifying ownership to immigration benefits, but the details are set separately. Check with the Immigration and Citizenship Service.
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