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Botswana: Inheritance

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Inheritance tax and law

Estate Duty

Levied on the estate of the deceased person at the same rates as income tax applied to both residents and non-residents. The first BWP100,000 (US$16,150) is also exempt from the tax. Refer to Taxes Which Reduce Your Rental Income.

Capital Transfer Tax

Capital Transfer tax is levied on the gratuitous transfer of property by way of inheritance and donations. The beneficiaries are liable to pay based on the market value of the property. The first BWP100,000 (US$16,150) is exempt. Any expense necessarily incurred by the beneficiary in obtaining the property is deductible. The rates for capital transfer tax are as follows:

CAPITAL TRANSFER TAX

TAX BASE, BWP (US$) MARGINAL TAX RATE
Up to 100,000 (US$16,150) 2%
100,001 - 300,000 (US$48,450) 3% on band over US$16,150
300,001 – 500,000 (US$80,750) 4% on band over US$48,450
Over 500,000 (US$80,750) 5% on all value over US$80,750
Source: Global Property Guide

The following are the inheritance taxes for residents and non-residents. Note that inheritance received by a spouse is not taxable.

INHERITANCE TAX FOR NON-RESIDENTS

TAXABLE INCOME, BWP (US$) MARGINAL TAX RATE
Up to 60,000 (US$9,690) 5%
60,001 – 90,000 (US$14,535) 12.5% on band over US$9,690
90,001 – 120,000 (US$19,380) 18.75% on band over US$14,535
Over 120,001 (US$19,380) 25% on all income over US$ 19,380
* Inheritance tax for non-residents is the same as income tax for non-residents (see Taxes and Costs in Botswana).
Source: Global Property Guide

INHERITANCE TAX FOR RESIDENTS

TAXABLE INCOME, BWP (US$) MARGINAL TAX RATE
Up to 30,000 (US$4,845) nil
30,001 – 60,000 (US$9,690) 5% on band over US$4,845
60,001 – 90,000 (US$14,535) 12.5% on band over US$9,690
90,001 – 120,000 (US$19,380) 18.75% on band over US$14,535
Over 120, 000 (US$19,380) 25% on all income over US$19,380
* Inheritance tax for residents is the same as income tax for residents (see Botswana Living There).
Source: Global Property Guide

 

Botswana - more data and information

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