East & Southern Africa
Botswana: tax at a glance
This is a source-based tax system. Reforms in July 2026 lifted the top personal rate to 27.5% and the corporate rate to 24.5%, with VAT at 14% and no social security.
Ways to relocate to Botswana
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 27.5%Rates are progressive. A new top band above BWP 400,000 takes effect from 1 Jul 2026, up from 25% previously.
- Corporate income
- 24.5%
- Capital gains
- Gains are taxed as income, indexed, up to 27.5% for individuals and 24.5% for companies.
- VAT
- 14%
- Dividends (WHT)
- 10%
- Interest (WHT)
- 15%
- Royalties (WHT)
- 15%
- Social security (employee)
- None
- Social security (employer)
- None
- Wealth tax
- None
- Inheritance / estate
- A Capital Transfer Tax applies to gifts and inheritances, up to roughly 5% for individuals and 12.5% for companies.
- Property tax
- Transfer duty runs 5%, rising to 30% for non-citizens, plus local rates.
- Other
- A training levy of 0.05%-0.2% applies on turnover.
How the system works
- Tax system
- Territorial
- Foreign income
- Largely outside scope (territorial)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
A special regime for new arrivals
Botswana runs a territorial tax system, so foreign income earned by residents is not taxed. IFSC companies pay 15% on approved transactions with non-residents. SEZA companies pay 5% for 10 years, then 10%. Manufacturing and BDIH companies pay 15%.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (2)
Secondary references