Togo Capital Gains Tax Guide 2026

Overview — CGT in Togo

Capital gains tax in Togo is governed by the Code Général des Impôts. The scope of CGT in Togo is narrower than in many other jurisdictions. The main chargeable asset class is real property (immobilier). Gains from the disposal of movable assets (securities, shares, bonds, and other financial instruments) held by individuals are generally exempt from CGT. For businesses, gains on asset disposals are included in ordinary taxable income and taxed at the standard CIT rate. Resident individuals and companies are taxed on Togolese property gains; non-residents are taxed only on gains from Togolese real estate. The rate is a flat 15% on net chargeable gains on property.

CGT on Property — 15%

The CGT rate on real property disposals in Togo is a flat 15% on net chargeable gains. The chargeable gain is calculated as: Sale price minus (Acquisition cost + Incidental costs of acquisition and disposal + Capital improvements). Allowable costs include the original purchase price, registration duties, notary fees, legal fees, and verified capital improvement expenditure. Indexation of the acquisition cost for inflation is not generally available. The gain must be reported in the tax year in which the disposal occurs. A withholding tax of 15% on the gross sale price is applied at the point of sale (withheld by the notary or purchaser and remitted to DGI). This withholding tax is a final tax for non-residents and an advance payment for residents.

Principal Residence Exemption

Gain from the disposal of an individual's principal private residence (résidence principale) is exempt from CGT in Togo, provided the property has been occupied as the main residence for at least 5 continuous years. The exemption covers the building and the land on which it stands, up to a reasonable size. If the property has been used partly as a residence and partly for business (e.g., a home office with separate entrance), the exemption applies proportionally to the residential portion. Vacation homes, second residences, and investment properties are fully chargeable. The exemption also does not apply to property held through a company or trust.

Securities & Shares — Exempt

Togo does not impose capital gains tax on the disposal of securities, shares, stocks, bonds, or other financial instruments by individual investors. This exemption applies to both listed and unlisted shares, as well as government securities and corporate bonds. The rationale is to encourage investment in the Regional Stock Exchange (Bourse Régionale des Valeurs Mobilières — BRVM) and the Togolese financial market. For corporate shareholders holding shares as trading assets (rather than long-term investments), gains may be treated as ordinary business income subject to CIT. Dividend income is subject to a separate 10% withholding tax regime.

Business Asset Disposals

For businesses and self-employed individuals, gains on the disposal of business assets are included in ordinary taxable income and taxed at the standard CIT rate (27%, 25%, 15%, or 10% depending on the sector) or the progressive IRPP rates for sole proprietors, rather than the 15% CGT rate. This means business asset gains are generally taxed more favourably than property gains at lower income levels but may be taxed at up to 40% for high-income individuals. Depreciation recapture rules apply: gains attributable to previously claimed depreciation deductions are fully taxable. The disposal of an entire business (fonds de commerce) attracts registration duties of 7% on the sale price, plus the standard income tax on any gain.

FAQs

How do I calculate CGT on property?

Sale price minus (purchase price + registration and notary costs on acquisition + documented improvement costs). Example: Buy for XOF 50,000,000, sell for XOF 80,000,000, costs of XOF 2,000,000. Gain = 80M − 50M − 2M = XOF 28,000,000. CGT at 15% = XOF 4,200,000.

Is there a minimum holding period for exemption?

For the principal residence exemption, the property must have been occupied for at least 5 continuous years. For other properties, there is no holding period exemption — CGT applies regardless of how long the property was held.

What about foreign exchange gains?

Foreign exchange gains arising from business transactions are generally treated as ordinary income. For individuals, significant FX gains on property transactions may be subject to CGT if the gain is realised in XOF equivalent.

Disclaimer

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