Zambia Capital Gains Tax Guide 2026 — 10% on Shares/Land, Property <5yr
Zambia imposes capital gains tax (CGT) at a rate of 10% on gains from the sale of shares, securities, land, and property held for less than 5 years. Property held for more than 5 years is generally exempt. Cryptocurrency gains are taxed as regular income.
CGT in Zambia applies to both residents and non-residents on gains from the disposal of Zambian assets. The tax is administered by the ZRA. Different rules apply depending on the type of asset and the holding period. For property, the holding period is critical — properties held for more than 5 years are typically exempt from CGT.
CGT Rates by Asset Type
- Shares and securities: 10% on gains from the sale of shares and marketable securities listed or unlisted in Zambia
- Land: 10% on gains from the sale of land
- Property/buildings: 10% if held for less than 5 years; exempt if held for 5 years or more
- Business assets: Included in CIT at the applicable corporate rate if held by a company
- Crypto assets: Taxed as ordinary income at progressive PAYE rates
Property Holding Period Rule
The 5-year holding period exemption for property is a key feature of Zambia's CGT regime. If you sell a property that you have owned and held for more than 5 years, the gain is generally exempt from CGT. For properties held for less than 5 years, the 10% rate applies. The holding period is calculated from the date of acquisition to the date of disposal. Improvements and renovations do not reset the holding period.
Calculation of Gains
The taxable gain is calculated as the selling price minus the acquisition cost and allowable incidental costs (legal fees, valuation fees, stamp duty). Indexation for inflation is not available. Losses on asset disposals can be offset against gains in the same tax year, but unrelieved losses generally cannot be carried forward.
FAQs
Do I pay CGT when selling shares in a Zambian company?
Yes. Gains from the sale of shares in a Zambian company are subject to 10% CGT. This applies to both residents and non-residents selling Zambian shares.
What if I sell my primary residence?
The sale of a primary residence held for more than 5 years is exempt from CGT. If held for less than 5 years, the 10% rate applies to the gain.
Are foreign capital gains taxable in Zambia?
Zambia taxes on a source basis. Foreign capital gains are generally not taxable in Zambia if you are a resident, unless remitted to Zambia in certain circumstances.
Disclaimer
This guide is for informational purposes only and does not constitute tax advice. Consult a qualified Zambian tax professional for advice specific to your circumstances.