Botswana Property Tax Guide 2026

Overview — Property Taxation in Botswana

Botswana's property tax system comprises three main levies: transfer duty (payable on acquisition), municipal rates (annual recurring tax), and capital gains tax (on disposal of non-primary residence property). The currency is the Botswana Pula (BWP). Property registration is conducted through the Deeds Registry under the Ministry of Lands and Housing.

Transfer Duty (5–10%)

Transfer duty is payable by the purchaser upon acquisition of immovable property in Botswana. The rates are progressive based on the property value:

• Up to BWP 200,000: 5%
• BWP 200,001 – 500,000: 7.5%
• Above BWP 500,000: 10%

Transfer duty is paid to BURS before the property can be registered in the purchaser's name at the Deeds Registry. Exemptions apply for certain transfers, including between spouses, on death, and for first-time homebuyers within specified limits (subject to qualifying conditions).

Annual Municipal Property Rates (0.1–1%)

Municipal property rates (also called land tax or rates) are levied annually by local councils and city municipalities. The rates are calculated as a percentage of the property's assessed market value:

• Residential properties: Typically 0.1–0.5% of assessed value
• Commercial properties: Typically 0.5–1% of assessed value
• Vacant land: Often rated at a higher percentage to encourage development

Rates vary by location (Gaborone, Francistown, and other municipalities set their own rates within the legislative framework). Payment is usually due in two instalments.

Capital Gains Tax on Land (25%)

As detailed in the Capital Gains Guide, gains from the disposal of non-primary residence land and buildings are subject to CGT at 25%. The primary residence exemption means most homeowners pay no CGT on sale. CGT on land held for development or investment purposes must be declared in the tax year of disposal.

Property Registration Costs

In addition to taxes, purchasers should budget for:

• Legal fees: Typically 1–2% of the property value
• Deeds registration fee: A fixed scale fee based on property value, payable to the Deeds Registry
• Valuation fee: If a formal valuation is required for mortgage purposes
• Stamp duty: On mortgage documents (typically 0.1–0.5% of loan amount)

Foreign Ownership of Property

Foreigners can own property in Botswana, but restrictions apply to agricultural land. Non-citizens may acquire immovable property for commercial or residential purposes, subject to approval. Transfer duty rates for non-citizens are generally the same as for citizens, though certain incentives may not apply. Non-residents selling property are subject to CGT on any gain.

FAQs

What is the difference between transfer duty and VAT on property?

Transfer duty is paid by the purchaser on the acquisition of existing properties. VAT at 14% applies to the sale of newly constructed properties by developers. A property transaction is subject to either transfer duty or VAT, rarely both.

Are municipal rates deductible for income tax?

For rental properties, municipal rates are deductible as an expense against rental income. For owner-occupied properties, they are not deductible.

How is the property value assessed for rates?

Municipalities conduct periodic mass valuations (every 4–5 years) to determine market values for rating purposes. Property owners can object to the valuation.

Disclaimer

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