Botswana

Research notes

Botswana — family-office tax dossier

Last reviewed: 2026-10-15 Tax year: 2026 Reviewer: research agent (Claude), unreviewed by a tax adviser

Summary

Botswana taxes individuals on a source basis: gains on foreign shares are outside the tax, and gains on shares of public or Botswana Stock Exchange-listed companies held at least a year are exempt. Botswana-source gains on other shares and on property are taxed at up to 25% (on 75% of the gain for shares). Dividends bear a 10% final withholding tax; PwC says foreign dividends of resident citizens are taxed at 10%. There is no wealth tax, but a capital transfer tax of up to 5% (individuals) is charged on the recipient of inheritances and gifts, including foreign property received by a beneficiary who lives in Botswana.

US citizens: US citizens remain fully US-taxed on worldwide income and estates; the app adds the US federal layer. No US-Botswana income tax treaty.

Residence and eligibility

Permanent place of abode in Botswana and physical presence of at least 183 days in the tax year (1 July-30 June) or the previous tax year (PwC).

• Residence permit (non-citizens) (EU, US, OTHER): Non-citizens need a residence permit, and a work permit to work; Botswana has no residence-by-investment programme for passive investors that was verified in this session.

Capital gains

Standard regime

Capital gains are a separate source of income taxed on a separate progressive table up to 25%, but only when the source is in Botswana. Gains on immovable property are inflation-indexed; for other assets 75% of the gain is taxable. Sales of shares of a public company, of shares traded on the Botswana Stock Exchange or of a company that has listed 49% or more of its equity there are exempt if held for at least one year. Gains on foreign shares and foreign property are outside the source-based tax.

• Exemptions and thresholds: Listed/public company shares held 12 months or more: exempt. Taxable share gains: 75% inclusion. Property: inflation-adjusted cost.
• Important exceptions, statute references and announced changes: Transfer duty on property purchases by non-citizens is 10% up to BWP 2 million and 15% above (buyer-side cost, not modelled).
• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON numbers: headline 25% (0.25); listed domestic 0% (0.0); listed foreign 0% (0.0); private business sale 18.75% (0.1875); local real estate 25% (0.25); foreign real estate 0% (0.0).
• How derived: Domestic listed: exempt after one year (Income Tax Act exemption described by PwC). Foreign listed and foreign real estate: 0, not Botswana-source. Private business (Botswana company): 25% top rate on 75% of the gain = 18.75%. Local real estate: 25% top rate on the inflation-indexed gain.
• Holding period: 12-month holding for the listed-share exemption.
• Trader recharacterisation: Regular dealing in shares or property would be business income at the ordinary 25% top rate.
• Foreign assets: Foreign gains are not Botswana-source and are not taxed.

Open points for this tax: PwC's individual CGT table (bands from BWP 36,000) has not been updated to the 2026 personal scale that starts at BWP 48,000; the 25% top rate is the same either way. | Whether the listed-share exemption applies to individuals in exactly the same way as to companies (PwC describes it on the corporate page) was not confirmed in the Income Tax Act.

Dividends

Standard regime

Dividends paid by Botswana companies bear a 10% withholding tax, which is the final tax. PwC states that the gross income of a resident citizen includes foreign dividends, taxed at 10%; the treatment of foreign dividends received by a resident non-citizen is not stated and was scored at the same 10%.

• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON numbers: headline 10% (0.1); domestic 10% (0.1); foreign gross 10% (0.1); foreign tax relief: credit.
• How derived: Domestic: 10% final WHT. Foreign: 10% (PwC, resident citizens) with unilateral credit for foreign tax up to the Botswana tax, so treaty-rate WHT of 10% or more would leave no Botswana tax.
• Outbound withholding: 10% on dividends to residents and non-residents; treaties reduce to 5-7.5% for substantial corporate holdings.
• Treaty network: 24 DTAs (mainly southern Africa, plus UK, France, Belgium, Ireland, Luxembourg, Malta, Sweden, India, China, UAE, Russia); no treaty with the US.
• Holding companies: Companies pay 22%; foreign dividends of resident companies are taxed on accrual; IFSC companies 15% on qualifying international income.

Open points for this tax: Whether foreign dividends of a resident non-citizen are taxable at all under the source rules (PwC mentions only resident citizens).

Inheritance and gifts to children

Standard regime

Capital transfer tax (Capital Transfer Tax Act, Cap. 53:02) is charged on the donee or heir on the aggregate taxable value of chargeable disposals received from one donor in a tax year, at progressive rates up to 5% for individuals (PwC, January 2026). Spouses inheriting are exempt; children are not, except for maintenance and education until 21. Property outside Botswana is exempt only if the beneficiary lives outside Botswana.

• Exemptions and thresholds: First BWP 100,000 of the distributable value of a deceased estate deducted; casual gifts up to BWP 5,000 a year per donee; marriage gifts below BWP 5,000; household goods below BWP 15,000.
• Important exceptions, statute references and announced changes: Rate bands below 5% exist but their thresholds were not found in an official source; the JSON applies the 5% top rate to the whole amount, a slight overstatement for a large estate. PwC's corporate page gives 12.5% for companies.
• Tax year / confidence / verification: 2026 / low / partially_verified (checked 2026-10-15)
• JSON numbers: basis beneficiary, children taxed_low, exemption 0 BWP, brackets (marginal): from 0 BWP: 5% (0.05); other transfer costs 0% (0.0).
• Gifts: Same capital transfer tax on gifts (gratuitous disposals), charged on the donee, aggregated per donor per tax year. (same as inheritance: True; tax-free after years: None)
• Foreign assets: Property outside Botswana is exempt only when the beneficiary lives outside Botswana; children living in Botswana are taxed on foreign assets received.
• Residence/domicile rules: The tax follows the beneficiary's place of living for foreign property; Botswana property is always within scope.
• Business relief covers listed shares: False

Open points for this tax: CTT rate bands for individuals (PwC: progressive up to 5%) were not obtained from the Act or BURS. | Whether a disposal by a non-resident donor of foreign property to a resident child is chargeable.

Surviving spouse: Property disposed of by way of inheritance to a spouse on the death of the other spouse is exempt from capital transfer tax (Capital Transfer Tax Act, Cap. 53:02, s. 4 exemptions; listed by BURS).

Wealth tax

Standard regime

No net wealth tax.

• Tax year / confidence / verification: 2026 / high / partially_verified (checked 2026-10-15)
• JSON type: none
• Property tax (not a wealth tax): PwC states there are no property taxes in Botswana; municipal rates in towns were not checked. Transfer duty on purchases: citizens 5% above BWP 1.5 million; non-citizens 10% to BWP 2 million and 15% above.

Special regimes

None modelled; see Residence and eligibility.

Company taxation (kept separate from personal tax)

Headline CIT rate: 22% (0.22). 22% flat CIT on a source basis; manufacturing companies with ministerial approval 15%; mining by formula (minimum 22%); diamond mining by agreement. Local dividends are not taxed in the hands of a company; dividend WHT 10%. Special zones/regimes: International Financial Services Centre (IFSC) companies: 15% on approved transactions with non-residents.

Cost of living notes

Not researched.

Open questions

• No 2025/26 or 2026/27 budget changes to CGT, dividend WHT or CTT were checked beyond PwC (reviewed 9 January 2026).

Sources

• Botswana - Individual - Other taxes (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/botswana/individual/other-taxes
• Botswana - Corporate - Income determination (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/botswana/corporate/income-determination
• Botswana - Individual - Taxes on personal income (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/botswana/individual/taxes-on-personal-income
• Botswana - Individual - Income determination (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/botswana/individual/income-determination
• Botswana - Corporate - Withholding taxes (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/botswana/corporate/withholding-taxes
• Botswana - Individual - Foreign tax relief and tax treaties (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/botswana/individual/foreign-tax-relief-and-tax-treaties
• Capital Transfer Tax (Botswana Unified Revenue Service, tax_authority): https://www.burs.org.bw/index.php/tax/capital-transfer-tax
• Botswana - Corporate - Other taxes (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/botswana/corporate/other-taxes
• Botswana - Individual - Residence (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/botswana/individual/residence
• Botswana - Corporate - Taxes on corporate income (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/botswana/corporate/taxes-on-corporate-income

Change log

• 2026-10-15: initial research.
• 2026-10-16: added surviving-spouse treatment.