KEY TAKEAWAYS
USD 100,000 — Minimum foreign-buyer threshold in Afar, Benishangul-Gumuz and Gambella, down 33.3%.
USD 120,000 — Minimum in nine regional states and Dire Dawa, 20% below the previous baseline.
USD 150,000 — Requirement retained for Addis Ababa and Sheger City.
One house — Maximum residential property permitted for each foreign national.
Five years — Maximum multiple-entry visa period available to qualifying homeowners and their families.
NUMBERS AND TREND SNAPSHOT
| Location or rule | Current requirement | Change or status |
|---|---|---|
| Afar, Benishangul-Gumuz and Gambella | USD 100,000 | USD 50,000 lower; down 33.3% |
| Nine regions and Dire Dawa | USD 120,000 | USD 30,000 lower; down 20% |
| Addis Ababa and Sheger City | USD 150,000 | No reduction |
| Property ownership limit | One house | Applies per foreign national |
| Ownership permit | One year | One-year extension possible |
| Permit service fee | USD 50 equivalent | Payable in birr |
| Multiple-entry visa | Up to five years | Subject to immigration procedures |
SUMMARY
Ethiopia has introduced regional financial thresholds for foreign nationals purchasing or constructing residential houses. Directive No. 1147/2018 E.C., published on 7 August 2026, lowers the minimum from the proclamation’s general USD 150,000 requirement to USD 100,000 in Afar, Benishangul-Gumuz and Gambella—a 33.3% reduction based on the reported figures. ( Ministry of Justice)
The threshold is USD 120,000 in Oromia, Amhara, Tigray, Sidama, Central Ethiopia, South Ethiopia, South West Ethiopia, Somali and Harari, as well as Dire Dawa. Addis Ababa and Sheger City retain the USD 150,000 minimum. Each foreign national is generally limited to one residential house.
Buyers must obtain ministry authorisation, transfer the required foreign currency through a bank and place the birr-converted proceeds in a blocked account. Domestic borrowing or capital mobilisation cannot finance the purchase. Permits remain valid for one year, with a possible one-year extension where force majeure prevents completion. Homeowners may qualify for residence permits and multiple-entry visas of up to five years, while rental or sale proceeds may be transferred abroad under National Bank of Ethiopia procedures. ( Proclamation No. 1388/2025)
WHY IT MATTERS
Lower regional thresholds could widen the market for privately financed housing developments outside Addis Ababa. Requiring new foreign-currency deposits could increase formal banking inflows, depending on buyer participation. Converting funds into birr before completing a transaction creates exchange-rate and approval-delay risks for buyers. The one-house limit and exclusion of subsidised housing are intended to restrict speculative accumulation and protect citizen-focused programmes.
WHAT TO WATCH
Launch of the ministry’s permit and online application systems.
National Bank procedures for blocked accounts and repatriating rental or sale proceeds.
Actual permits, foreign-currency inflows and property transactions recorded under the directive.