Botswana

With a stable democracy, lower cost of living and open economy largely dependent on mining diamonds and tourism, Botswana is a draw for some expats and investors. Botswana gained independence from the UK in 1966, but remains a member of the Commonwealth and English is widely spoken.

Over half the population lives in urban areas. The capital city is Gaborone and other main towns including Maun, Lobatse and Francistown. The residential market has grown, alongside the commercial and industrial sectors, especially in the higher end. The Government welcomes foreign investment in freehold real estate, but there are heavy restrictions relating to tribal and state land, with a distinct system of land tenure and ownership. Non-citizens need Ministerial consent to hold land and it has been a topic of recent debate. Your estate agent will be able to advise.

As of May 2023, the law states that non-citizens pay transfer duty at a reduced rate of 10% where the purchase price or property value is P2 million or less, and 15% where it exceeds P2 million. Citizen buyers, or citizen-owned companies, continue to pay a significantly lower rate. This structure means property purchases are still more expensive for foreign or non-resident buyers, although the cost is now lower than under the previous 30% rate.

Botswana operates a relatively liberal foreign exchange environment, with no strict exchange controls for most transactions, though certain reporting and regulatory requirements may still apply. The country has corporate and personal taxation, generally regarded as straightforward and comparatively low. Personal income tax is progressive, with rates rising to a maximum of 25%. Tax residency is typically determined by physical presence of more than 183 days in a tax year. Residents are taxed on worldwide income, while non-residents are taxed only on income sourced within Botswana. Capital gains are treated as taxable income, subject to personal income tax. There is a capital transfer tax for inheritance and there is a Withholding Tax. Check details with a tax specialist.

Check entry requirements with the embassy before travelling, but generally British passport holders can stay up to 90 days without a visa. Any longer and you will need to apply for an extension with a residence or work permit. Botswana does operate a residency by investment programme. Fees, terms & conditions apply.

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