Benin Capital Gains Tax Guide 2026

Overview — CGT in Benin

Capital gains tax in Benin applies primarily to gains from the disposal of real property (land and buildings). The chargeable gain is the difference between the transfer price and the original acquisition cost, indexed for inflation using official coefficients published by DGI. The tax is assessed separately from income tax. Both residents and non-residents are subject to CGT on gains from Beninese property.

CGT Rate

The capital gains tax rate on property disposals in Benin is calculated as part of the registration duty framework. The effective rate is approximately 6% of the gain after indexation, integrated into the registration fee of 8% on the transfer value. The purchaser is generally responsible for withholding and remitting the tax at the time of registration.

Principal Residence Exemption

Gain from the disposal of an individual's principal private residence may be exempt from CGT if the property has been occupied as the main residence for at least 5 years. Partial relief is available where the property has been used partly as a residence and partly for business. Additional residences and investment properties are fully chargeable.

Calculation of Chargeable Gain

The chargeable gain is calculated as: Selling price minus (Acquisition cost × Indexation coefficient) minus incidental costs of acquisition and disposal. Allowable costs include legal fees, registration duties paid at acquisition, and capital improvements. Only expenditure incurred wholly and exclusively for the acquisition or enhancement of the asset qualifies. The gain must be reported at the time of registration of the transfer deed.

FAQs

How do I calculate my chargeable gain?

Example: Buy land in 2018 for XOF 20,000,000. Sell in 2026 for XOF 35,000,000. With an indexation coefficient of 1.15, the indexed cost is 20,000,000 × 1.15 = 23,000,000. Gain = 35,000,000 − 23,000,000 = XOF 12,000,000. CGT = approximately 6% of gain.

Can I offset capital losses?

Capital losses on property disposals may be offset against capital gains in the same year. Unrelieved losses may be carried forward for up to 5 years but cannot be offset against other income.

What assets are exempt from CGT?

Principal residence (5+ years occupation), agricultural land under certain conditions, and assets transferred on death or between spouses.

Disclaimer

This guide provides general information about Beninese capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Beninese tax advisor or the Direction Générale des Impôts for advice specific to your situation. InvestmentKit does not provide tax advice.