Capital Gains on Property & Investments

Capital gains can simply be defined as the profit that is made upon selling capital assets. These assets include all types of property, and in this context, plots and immovable property such as residential, commercial and residential property. Below, we give a few pointers on you should know about capital gains and its associated tax:

  1.  According to the ‘Global Property Guide’, Botswana ranks 7th in Africa on the highest capital gains tax rates on property. This is can be considered to be high as some countries such as Namibia and Kenya exempt capital gains tax.
  2. Capital gains taxes are based on the taxable income received. This figure is inflation-adjusted. The maximum taxation percentage is 25%.
  3. Therefore, taxable is set at 75% of the total gain from the disposal of the property.
  4. Capital gains tax rates on long-term properties are typically lower than your normal income tax rate. Therefore, a longer holding period of property you are disposing results in a decline in the capital gains tax payable.
  5. PRO TIP: You can reduce the taxable amount on your capital gains by investing in property for the long-term.

Contact Tempest Gold on +26772196950 or email  for advisory consultancy on how to make maximize your property investments in Botswana.

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