Botswana: Taxes and Costs

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Last Updated: Aug 23, 2008

Income tax is moderate in Botswana

Effective Tax Rate on Rental Income
Monthly Income	US$1,500	US$6,000	US$12,000
Tax Rate	4.2%	15.5%	19.8%
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Source: Disclaimer

INDIVIDUAL TAXATION

Non-residents are taxed on all income derived within Botswana. Married couples are assessed and taxed separately.

INCOME TAX

Income is taxed at progressive rates. A special set of tax bands apply to non-resident individuals.

INCOME TAX FOR NON RESIDENTS
TAXABLE INCOME, BWP (US$)	TAX RATE
Up to 60,000 (US$8,433)	5%
60,000 – 90,000 (US$12,649)	12.50% over US$8,433
90,000 – 120,000 (US$16,865)	18.75% over US$12,649
Over 120,000 (US$16,865)	25% on all income over US$16,865
Source: Global Property Guide

RENTAL INCOME

Rental income earned by non-residents from properties in Botswana is 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.

CAPITAL GAINS

There is no separate capital gains tax in Botswana. Capital gains realized from selling real property is subject to income tax under a special regime. Capital gains is gross sales price less acquisition costs, improvement costs, and transaction costs.

INCOME TAX ON CAPITAL GAINS
TAX BASE , BWP (US$)	TAX RATE
Up to 15,000 (US$ 2,108)	0%
15,000 – 60,000 (US$ 8,433)	5% on band over US$2,2,108
60,000 – 90,000 (US$ 12,649)	12.5% on band over US$8,433
90,000 – 120,000 (US$ 16,865)	18.75% on band over US$12,649
Over 120,000 (US$16,865)	25% on all value over US$16,865
Source: Global Property Guide

Botswana - more data and information

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