Botswana Capital Gains Tax Guide 2026

Overview — CGT in Botswana

Botswana has a targeted capital gains tax regime. CGT applies only to gains from the disposal of land and buildings situated in Botswana that are not the taxpayer's primary residence. The rate is a flat 25% on the net gain. There is no CGT on shares, bonds, mutual funds, or other securities. This makes Botswana attractive for investment holding and portfolio management.

CGT Rate — 25%

The capital gains tax rate is 25% on the chargeable gain. The gain is calculated as the proceeds from disposal less the cost of acquisition and any incidental costs of acquisition and disposal. Allowable costs include legal fees, valuation fees, stamp duties, and improvement costs. CGT applies to both individuals and companies, though companies may be taxed on property gains through the CIT regime rather than a separate CGT computation.

Exemptions

Key exemptions from CGT include:

• Primary residence: Gains on the sale of a taxpayer's main home are fully exempt from CGT
• Shares and securities: Gains from the disposal of shares, bonds, debentures, and other financial instruments are exempt
• Personal assets: Gains from the sale of personal movable property (e.g., vehicles, household goods) are generally not subject to CGT
• Inheritance: Assets passing on death are not subject to CGT (though the beneficiary takes the deceased's cost base)
• Gifts between spouses: Transfers between spouses are generally treated as no-gain/no-loss events

Calculation of Chargeable Gain

The chargeable gain is calculated as follows:

Proceeds (sale price) — Cost of acquisition (purchase price + acquisition costs) — Improvement costs (capital improvements) — Incidental costs of disposal (agent fees, legal fees, etc.) = Chargeable gain

Where improvements were made over several years, the cost base may be adjusted using an appropriate indexation method or by reference to actual costs. Losses on property disposals can be offset against gains on other property disposals in the same tax year. Unrelieved capital losses can be carried forward against future property gains.

Primary Residence Exemption

The sale of a primary residence is fully exempt from CGT, provided:

• The property is the taxpayer's main home
• The property is used as a private residence throughout the period of ownership
• Any business use is minimal or incidental

If part of the residence is used for business purposes (e.g., a home office), a proportionate gain may be chargeable. Land surrounding the residence (up to a reasonable area) is also covered by the exemption.

FAQs

Is there CGT on cryptocurrency gains?

Crypto gains are generally treated as ordinary income (trading) or capital gains (investment). Since CGT on shares is 0%, crypto held as an investment may not attract CGT, but trading profits are subject to IIT or CIT at standard rates. BURS guidance should be consulted.

What if I sell property at a loss?

Capital losses on property can be offset against capital gains on other property in the same year. Unrelieved losses can be carried forward to future years.

Do non-residents pay CGT on Botswana property?

Yes, non-residents who dispose of land or buildings in Botswana are subject to CGT at 25% on the gain. BURS requires withholding on the sale proceeds to ensure collection.

Disclaimer

This guide provides general information about Botswana CGT for 2026. Tax laws and rates may change. Always consult a qualified tax professional or BURS for advice specific to your circumstances. InvestmentKit does not provide tax advice.