Zimbabwe Capital Gains Tax Guide 2026 — 5% Securities, 20% Property
Zimbabwe imposes capital gains tax (CGT) at different rates depending on the asset type. Gains from listed securities on the Zimbabwe Stock Exchange (ZSE) are taxed at 5%. Gains from property and unlisted shares are taxed at 20%. A primary residence exemption of up to ZWL 5 million in gain applies under certain conditions.
CGT in Zimbabwe applies to both residents and non-residents on gains from the disposal of Zimbabwean assets. The tax is administered by ZIMRA. Different rules apply depending on the type of asset. Indexation for inflation was historically available but has been modified in recent reforms.
CGT Rates by Asset Type
- Listed securities (ZSE): 5% on gains from the sale of shares and securities listed on the Zimbabwe Stock Exchange
- Property (land and buildings): 20% on gains from the sale of immovable property
- Unlisted shares: 20% on gains from the sale of shares in unlisted Zimbabwean companies
- 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
Primary Residence Exemption
The first ZWL 5 million of gain on the sale of a primary residence may be exempt from CGT, subject to conditions including ownership period and usage as the principal home. This exemption is reviewed periodically in the national budget and thresholds may be adjusted for inflation.
Calculation of Gains
The taxable gain is calculated as the selling price minus the acquisition cost and allowable incidental costs (legal fees, valuation fees, transfer duty). Indexation for inflation is not currently 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 on the ZSE?
Yes. Gains from the sale of ZSE-listed shares are subject to 5% CGT. The tax is deducted by the stockbroker at the time of sale.
What if I sell my primary residence?
The first ZWL 5 million of gain may be exempt from CGT. Gains above this threshold are taxed at 20%.
Are foreign capital gains taxable in Zimbabwe?
Zimbabwe taxes on a territorial basis. Foreign capital gains are generally not taxable in Zimbabwe for residents.
Disclaimer
This guide is for informational purposes only and does not constitute tax advice. Consult a qualified Zimbabwean tax professional for advice specific to your circumstances.