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%
Click here to see a worked example
Source: Disclaimer

INDIVIDUAL TAXATION

Nonresidents are taxed on all income derived within Botswana. Married couples are assessed and taxed separately.

INCOME TAX

Rental income 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.

INCOME TAX
TAXABLE INCOME, BWP (US$)	MARGINAL TAX RATE
Up to 60,000 (US$9,108)	5%
60,001 – 90,000 (US$13,661)	12.5% over US$9,108
90,001 – 120,000 (US$18,215)	18.75% over US$13,661
Over 120,001 (US$18,215)	25% on all income over US$18,215
Source: Global Property Guide

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.

CAPITAL GAINS TAX
TAXABLE INCOME, BWP (US$)	MARGINAL TAX RATE
Up to 15,000 (US$ 2,277)	nil
15,001 – 60,000 (US$ 9,108)	5% on band over US$2,277
60,001 – 90,000 (US$ 13,661)	12.5% on band over US$9,108
90,001 – 120,000 (US$ 19,380)	18.75% on band over US$13,661
Over 120,000 (US$18,215)	25% on all income over US$18,215
Source: Global Property Guide

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