Zambia

Research notes

Zambia — family-office tax dossier

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

Summary

Zambia has no capital gains tax, no wealth tax and no inheritance, estate or gift tax. Gains on listed and foreign securities are untaxed; an 8% Property Transfer Tax on value applies instead to Zambian land and unlisted Zambian shares. The weak point for this family is dividends: residents' foreign dividends (and interest) are taxed at progressive rates up to 37%, with a foreign tax credit. Dividends from Lusaka-listed companies are exempt.

US citizens: US citizens remain fully US-taxed. Zambia's 37% tax on foreign dividends exceeds the US rate on qualified dividends, so the Zambian tax would be the binding layer (credit mechanics under US rules not analysed). No US-Zambia income tax treaty (not verified).

Residence and eligibility

An individual is resident unless present in Zambia only for a temporary purpose and not with a view to establishing residence; presence of 183 days or more in a charge year (calendar year) always makes an individual resident.

• Immigration permits (investor, employment, residence) (EU, US, OTHER): All non-Zambians need a permit under the Immigration and Deportation Act; investor and residence permit thresholds were not researched in this pass.

Capital gains

Standard regime

Zambia has no capital gains tax. Gains on listed or foreign securities are outside income tax (the Income Tax Act taxes Zambian-source income plus residents' foreign interest and dividends only). Instead, Property Transfer Tax (PTT) of 8% of the value is charged, normally on the seller, on transfers of Zambian land and buildings and of shares in Zambian-incorporated companies other than shares listed on the Lusaka Securities Exchange (LuSE).

• Exemptions and thresholds: No CGT at all. PTT does not apply to LuSE-listed shares or to foreign shares.
• Important exceptions, statute references and announced changes: PTT 8% (from 1 January 2025) on land, unlisted Zambian shares (including indirect transfers by a non-resident company holding at least 10%), IP and certain mining rights; 10% on mining licences/rights. PTT is levied on value (realisable value/consideration), not on the gain. Business income (a trade in shares or property) is taxable at income tax rates.
• Tax year / confidence / verification: 2026 / high / partially_verified (checked 2026-10-15)
• JSON numbers: headline 0% (0.0); listed domestic 0% (0.0); listed foreign 0% (0.0); private business sale 8% (0.08); local real estate 8% (0.08); foreign real estate 0% (0.0).
• How derived: Listed (LuSE) and foreign securities: 0 (no CGT; no PTT on listed or foreign shares). Private business (shares in a Zambian company) and Zambian real estate: 0.08 = 8% PTT on the transfer value, recorded as the rate because it replaces CGT; on a gain smaller than the full value the burden relative to the gain is higher (e.g. 16% of a gain equal to half the value). Foreign real estate: 0.
• Holding period: None.
• Trader recharacterisation: Profits from a business of dealing in shares or property are business income taxed at up to 37% (individual) or 30% (company).
• Foreign assets: Gains on foreign assets are not taxed; only foreign interest and dividends of residents are brought into Zambian tax.

Dividends

Standard regime

Dividends from Zambian companies bear a final 15% withholding tax, but dividends paid to individuals by LuSE-listed companies are exempt. Foreign dividends received by Zambian residents are deemed Zambian-source and taxed at the progressive rates (top 37% above ZMW 110,400 a year), with a unilateral foreign tax credit where no treaty applies.

• Exemptions and thresholds: 2026 bands (annual): ZMW 0-61,200 0%; 61,201-85,200 20%; 85,201-110,400 30%; above 110,400 37%.
• Important exceptions, statute references and announced changes: Dividend WHT is a final tax for individuals. Exempt: dividends from LuSE-listed companies to individuals, mining-company dividends, and certain farming and vehicle-assembly dividends for five years.
• Tax year / confidence / verification: 2026 / high / partially_verified (checked 2026-10-15)
• JSON numbers: headline 37% (0.37); domestic 0% (0.0); foreign gross 37% (0.37); foreign tax relief: credit.
• How derived: Domestic: 0 for LuSE-listed shares (the relevant case for a listed portfolio); unlisted Zambian companies 15% final WHT. Foreign: deemed Zambian-source, taxed at the 37% top rate before a credit limited to the Zambian tax on that income (treaty rates where a treaty applies).
• Outbound withholding: 15% (residents) / 20% (non-residents, reducible by treaty) on dividends from Zambian companies; 0% on LuSE-listed dividends to individuals and on mining dividends.
• Treaty network: More than 20 treaties (Deloitte 2026). No US income tax treaty (not verified from the US list), so US dividends bear 30% US WHT.
• Holding companies: Companies pay 30% CIT; no CGT. A company holding a foreign portfolio would itself be taxed on foreign dividends; not modelled.

Inheritance and gifts to children

Standard regime

No inheritance tax, estate duty, gift or donations tax.

• Exemptions and thresholds: No tax of any amount.
• Important exceptions, statute references and announced changes: Property Transfer Tax (8%) may arise when Zambian land or unlisted Zambian shares are transferred; whether transfers to heirs or donees are exempt was not verified. Foreign assets and listed securities are outside PTT.
• Tax year / confidence / verification: 2026 / high / partially_verified (checked 2026-10-15)
• JSON numbers: basis none, children fully_exempt, scope worldwide, exemption 0 ZMW, brackets (marginal): none; other transfer costs 0% (0.0).
• Gifts: None (no donations tax); PTT on gifts of Zambian land or unlisted shares not verified. (same as inheritance: True; tax-free after years: None)
• Foreign assets: No tax.
• Residence/domicile rules: Not applicable.
• Business relief covers listed shares: False

Wealth tax

Standard regime

No net wealth or net worth tax.

• Tax year / confidence / verification: 2026 / high / verified (checked 2026-10-15)
• JSON type: none
• Property tax (not a wealth tax): Local council rates on land and buildings (Ministry of Lands / city councils); PTT on transfers.

Special regimes

None modelled; see Residence and eligibility.

Company taxation (kept separate from personal tax)

Headline CIT rate: 30% (0.3). 30% standard CIT for companies and branches (35% electronic communications; mining and other sector rates differ); 5% turnover tax for small businesses. No CGT; PTT applies to transfers of land and unlisted shares. 15% final WHT on dividends to residents, 20% to non-residents. Special zones/regimes: Multi-facility economic zones and priority-sector incentives (not researched).

Cost of living notes

Not researched in this pass: no cost item could be sourced quickly from an agency report, school fee page or comparable source, so cost_of_living is omitted.

Open questions

• Investor/residence permit requirements not researched.
• Whether PTT applies to the transfer of Zambian land or unlisted shares to heirs on death or by gift (and on what value) was not verified.
• PTT treatment of transfers on death and of gifts of Zambian real estate not verified.

Sources

• Zambia - Individual - Income determination (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/zambia/individual/income-determination
• Zambia - Individual - Other taxes (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/zambia/individual/other-taxes
• Zambia Highlights 2026 (updated April 2026) (Deloitte International Tax, professional): https://www.deloitte.com/content/dam/assets-shared/docs/services/tax/2026/dttl-tax-zambiahighlights-2026.pdf
• Zambia - Individual - Taxes on personal income (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/zambia/individual/taxes-on-personal-income
• Zambia - Individual - Residence (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/zambia/individual/residence

Change log

• 2026-10-15: initial research.