Burkina Faso Capital Gains Tax Guide 2026

Overview — CGT in Burkina Faso

Capital gains in Burkina Faso are governed by the Code Général des Impôts and are treated as ordinary income for tax purposes. For individuals, gains from the disposal of assets are included in taxable income and taxed under the progressive IRPP rates (0–35%). For companies, capital gains are included in chargeable profits and taxed at the applicable CIT rate (27.5% standard, 20% agriculture, 15% priority sectors). A specific regime applies to real property gains, with a withholding tax on property transfers. The tax is administered by the Direction Générale des Impôts (DGI).

Tax Treatment of Capital Gains

Capital gains in Burkina Faso are calculated as the difference between the disposal proceeds and the acquisition cost, adjusted for enhancement expenditure and inflation. The gain is included in the taxpayer's ordinary income for the year of disposal:

• Individuals — gains taxed at progressive IRPP rates (0%, 12%, 20%, 30%, 35%)
• Companies — gains taxed at CIT rate (27.5% standard)
• Property gains — specific regime with registration duty of 8%
• Business asset disposals — gain included in ordinary business income

This integrated treatment means that capital gains do not benefit from a lower rate. However, the professional deduction (20% capped) may apply to reduce the effective rate for individuals.

Property Gains — Registration Duty

Gains from the disposal of real property are subject to a registration duty (droit d'enregistrement) of 8% on the transfer value. This is in addition to the income tax treatment of the gain. The registration duty is payable at the time of property registration and is typically shared between buyer and seller. The duty applies to both land and buildings. Certain exemptions may apply for principal residence transfers and agricultural land.

Principal Residence Relief

Gain from the disposal of an individual's principal residence may be exempt from income tax under certain conditions, including a minimum holding period and occupation as the main home. The exemption is subject to DGI approval and may be limited to a maximum gain amount. Additional residences (second homes, investment properties) are fully chargeable.

Exemptions & Reliefs

Certain capital gains are exempt from tax in Burkina Faso:

• Gains on disposal of principal residence (subject to conditions)
• Gains on agricultural land transferred within families
• Gains on assets held for more than a specified period (indexation relief)
• Gains on assets transferred on death (subject to registration duties)

Capital losses may be offset against capital gains in the same year, with unrelieved losses carried forward for up to 5 years.

FAQs

How do I calculate my chargeable gain on property?

The gain is the difference between the sale price and the acquisition cost, plus allowable enhancement expenditure. Indexation may be applied to the cost base for long-held assets. The gain is then added to your other income and taxed at your marginal rate.

Is there a separate CGT rate for shares?

No, gains from the disposal of shares are treated as ordinary income and taxed at the taxpayer's marginal rate. There is no preferential rate for share disposals in Burkina Faso.

Can I offset capital losses against my salary income?

Capital losses can only be offset against capital gains in the same year. Unrelieved losses may be carried forward but cannot be offset against other income such as salary or business profits.

Disclaimer

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