Botswana: Taxes and Costs
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Rental income tax is surprising low in Botswana
Effective Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 4.2% | 15.5% | 19.8% |
| Click here to see a worked example | |||
Source:
Disclaimer
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Income Tax
Non-residents are taxed on all income derived within Botswana. Rental incomes from properties in Botswana are subject to progressive tax rates. Any expenses that are unavoidably incurred in producing rental income are deductible. These expenses include interest on loans, improvements, irrecoverable rent, and others.
The following tax rates apply for non-residents as of 01 July 2006:
INCOME TAX |
|
| TAXABLE INCOME, BWP (US$) | 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 |
| Source: Global Property Guide | |
Married couples are assessed separately.
Capital Gains Tax
Gains realized from the sale of real properties in Botswana are subject to capital gains tax levied on the net gains. That is, gross sales price less allowable deductions. These deductions include costs incurred in acquiring, improving, and disposing of the property. The net gains are then subject to the following progressive rates:
INCOME TAX |
|
| TAXABLE INCOME, BWP (US$) | MARGINAL TAX RATE |
| Up to 15,000 (US$ 2,423) | nil |
| 15,001 – 60,000 (US$ 9,690) | 5% on band over US$2,423 |
| 60,001 – 90,000 (US$ 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$19,380) | 25% on all gains over US$ 19,380 |
| Source: Global Property Guide | |
Botswana - more data and information
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