# Botswana: taxes, residence and cost of living

Source: https://domicile.wiki/places/botswana/ (domicile.wiki, researched 2026-10-15). Data licence CC BY-SA 4.0. Research, not tax or legal advice.

## At a glance

For an EU-citizen family of five living off a EUR 30M portfolio (the guide's default reader).

- Score for a wealthy family: 62 / 100
- Tax on a €30M portfolio: €112,933 a year
- Wealth tax: none
- Children inherit: low tax
- EU member: no
- Currency: BWP
- Capital: Gaborone

## Tax on investments, inheritance and wealth

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.

- **Botswana tax resident**: Source-based income tax 0-25%; separate capital gains table; capital transfer tax on heirs and donees.

## Inheritance law and trusts

A will can dispose of the whole estate: the Wills Act (Cap. 31:04) sets formalities, not reserved shares. A separate Act gives the surviving spouse and family a claim to provision, but not for estates run under customary law. Trusts exist under common law; no private foundation law was found.

## Daily life (0-100, higher is better)

- Safety and personal security: 40
- Political and institutional stability: 63
- Corruption and government integrity: 60
- Legal system and property rights: 56
- Healthcare quality and access: 41
- Education quality: 30
- Human development and quality of life: 46
- Infrastructure and connectivity: 57
- Business opportunities and economy: 56

## 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.


## Residence and succession sources

- [Wills Act (Cap. 31:04)](https://botswanalaws.com/consolidated-statutes/principle-legislation/wills) — Botswana Laws
- [Succession (Rights of the Surviving Spouse and Inheritance Family Provisions) Act](https://botswanalaws.com/consolidated-statutes/principle-legislation/succession-rights-the-surviving-spouse-and-inheritance-family-provisions) — Botswana Laws
- [HCCH status table: Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition](https://www.hcch.net/en/instruments/conventions/status-table/?cid=59) — Hague Conference on Private International Law