Africa & Indian Ocean · Southern Africa

Botswana

Africa's most stable democracy with territorial taxation and a 25% top rate — now running a diamond-driven fiscal crisis that is simultaneously pushing tax rates up and pushing the government toward selling citizenship.

Last verified July 202681 visa-free destinations

Tax position

Income tax (top): 25% above BWP 156,000 — a proposed rise to 27.5% above BWP 400,001 was announced in February 2026 but is not yet law; an earlier 1.5% rise proposed in 2025 was paused and never took effect
Capital gains: Yes — individuals on a separate scale to 25% (only 75% of the gain taxable for most securities); companies at 22%
Wealth tax: none
Inheritance tax: YES — Capital Transfer Tax applies to gifts and inheritances: 2% on the first BWP 100,000, 3% on the next 200,000, 4% on the next 200,000, 5% on the balance; companies 12.5%. Spousal transfers are exempt, and foreign-situs assets are exempt where the beneficiary is domiciled outside Botswana.
Special regime: Territorial — foreign income of residents is not taxed. IFSC companies pay 15% on approved transactions with non-residents; SEZA 5% for 10 years then 10%; manufacturing and BDIH 15%.
Territorial: Yes — foreign-source income generally outside scope
CFC rules: No
Exit tax: No
CRS: Not participating