Botswana expat tax 2026/27: residence and rates

Botswana used to be one of Africa's simplest places to hold money abroad: if you weren't a citizen, your foreign investment income wasn't taxed. That changed on 1 July 2026. The new Income Tax Act taxes residents on their worldwide income, with one important exception for foreign workers on short contracts.

This guide covers Botswana personal tax for people moving to or living in Botswana in the 2026/27 tax year (1 July 2026 to 30 June 2027): the switch to worldwide tax, the temporary resident rule, the 183-day test, the new 27.5% band, capital gains, crypto, the exit charge and how to stay long term.

The key question is simple. Are you in Botswana only to work, on a contract of three years or less? If you are, and you're not a citizen or permanent resident, you're taxed only on Botswana income. Everyone else who is resident is taxed on everything.

What's changed: the Income Tax Act, 2026 (Act No. 13 of 2026) replaced the old Income Tax Act from 1 July 2026. Residents, other than temporary residents, are now taxed on income from all sources inside and outside Botswana; under the old Act, foreign investment income of non-citizen residents was outside the charge. A new top band of 27.5% applies to taxable income above P400,000 (the top rate was 25%). Capital gains now have their own rate scale, gains on Botswana-listed shares held for at least a year are exempt, and dividends and interest paid to residents carry 10% withholding tax. A new Tax Administration Act, 2026 and Value Added Tax Act, 2026 came in at the same time.

📋 Botswana tax at a glance for 2026/27

Worldwide tax and the temporary resident rule

Why does the new Act matter so much for people moving to Botswana? Because it changes what's taxed, not just the rates.

Image 1 — Botswana now taxes residents on worldwide income

Section 14 of the Income Tax Act, 2026 says the gross income of a resident, other than a temporary resident, includes income from all sources inside and outside Botswana. Non-residents and temporary residents are taxed only on Botswana-source income.

Under section 7(6), you're a temporary resident if you're resident only because you've come to Botswana to work, for a period of not more than three years. Botswana citizens and permanent residents can't be temporary residents. The Act doesn't define how the three years are measured, so if your contract is extended beyond three years, assume your foreign income comes into the charge and check with BURS.

If you're an ordinary resident, three rules soften worldwide tax:

• Foreign employment income: exempt if it's taxed in the country where you do the work (Schedule 2, Part VI).

• Foreign tax credit: foreign tax on other foreign income is credited, up to the Botswana tax on it, under section 96. Unused credit is lost.

• Entry step-up: when you become resident, you're treated as buying your foreign assets at market value, so only gains made while you're resident are taxed (section 112(6)).

The catch comes when you leave. Under section 112(5), if you stop being resident, you're treated as selling your assets other than Botswana assets at market value on that date. That's an exit charge on foreign shares, funds, property and, on our reading, crypto.

👉 BURS: Income Tax Act, 2026 (Act No. 13 of 2026), full text

👉 BURS: tax laws 2026 (Income Tax, Tax Administration and VAT Acts)

👉 BURS: the old Income Tax Act (Cap. 52:01), section 11 on foreign investment income

When you become tax resident in Botswana, and how you stop

Under section 7 of the 2026 Act, you're resident if any of these apply:

• you have a permanent home in Botswana

• you're physically present in Botswana for 183 days or more in any 12-month period that starts or ends during the tax year

• you're a Botswana government employee or official posted abroad

The 183-day test is stricter than it looks. Part of a day counts as a whole day, and short trips away for business or a holiday count as days in Botswana. Because it uses any 12-month period, you can't reset the count on 1 July.

There are split-year rules both ways. In your first year, you're resident only from the day you first arrive. In your last year, if you won't be resident the following year, residence ends on the last day you're in Botswana. That's also the date the exit charge on your foreign assets applies.

Non-residents pay tax only on Botswana income, at non-resident rates. An employee of a foreign employer who spends no more than 90 days in Botswana in any 12 months, and is taxed at home, is exempt on that work.

Income tax rates for 2026/27

Salaries, business profits, foreign income and rent are added together and taxed on one scale. Residents, including temporary residents, use this table.

Botswana income tax rates for residents in 2026/27

Source: Income Tax Act, 2026, Schedule 1, Part I, and the BURS tax table effective from 1 July 2026.

Non-residents have no tax-free band. They pay 5% on the first P84,000, then the same rates as residents above that, reaching 27.5% above P400,000.

Contributions you pay to an approved retirement fund are deductible up to 15% of taxable income, but only if they're paid from Botswana income. Your employer can deduct its own contributions for you up to 20% of your pay.

👉 BURS: tax table and guidance notes effective from 1 July 2026

Worked example

• You're single and resident, and you work for a Botswana employer for the whole 2026/27 year, earning P1.34 million (about US$100k at P13.4 to the dollar).

• Tax on the first P400,000 is P74,050. The remaining P940,000 is taxed at 27.5%, which is P258,500.

• There are no social security contributions to add.

Your all-in bill is about P332,550, or 24.8% of your salary. Your employer deducts it monthly through PAYE. The answer is the same if you're a temporary resident; the difference is that your foreign rent, dividends and interest stay untaxed.

Freelancing in Botswana

If you're self-employed and resident, your business income is taxed on the same scale as a salary, after business expenses. The temporary resident rule is only for people who come to work in employment, so it doesn't help freelancers. Income from a business run from Botswana is Botswana income even if your clients are abroad.

On US$100k of profit (P1.34 million), that's P332,550 of tax, about 24.8%. There are no social security contributions for the self-employed.

You pay income tax in four quarterly instalments during the year, by the 3rd, 6th, 9th and 12th months of the tax year (September, December, March and June), unless your estimated tax for the year is under P50,000. Foreign nationals need a work permit to work or run a business in Botswana; the fee is P1,500.

👉 Government of Botswana: residency and work permits

Crypto, investments and pensions

Is crypto taxed in Botswana? The 2026 Act doesn't mention crypto, and BURS hasn't published guidance. But the Act defines an asset as any movable or immovable property, including any resource with a measurable value, and every asset that isn't trading stock or a business asset is a capital gains tax asset. On that reading, a gain on crypto you hold as an investment is a capital gain. If you trade, profits are business income.

Capital gains are worked out separately from income. Your net gains for the year are taxed on their own scale: nothing on the first P36,000, then 5% rising to 25%, and 27.5% above P400,000. A net loss can be carried forward for one year only. Gains on immovable property held for more than a year get an inflation adjustment to the cost.

• Botswana-listed shares: gains are exempt if you've held the shares for at least a year and they trade on the Botswana Stock Exchange.

• Your home: a gain on your main home is exempt if you've owned it for at least five years, once every five years.

• Dividends: dividends from Botswana companies carry 10% withholding tax. BURS hasn't yet published guidance on whether this is a final tax for residents under the new Act.

• Interest: interest paid to resident individuals carries 10% withholding tax. Under the old Act this was an advance tax on bank interest, not a final one, so check with BURS before treating it as final.

• Foreign dividends and interest: taxed on the resident scale, with a credit for foreign tax, unless you're a temporary resident.

Pensions from an approved Botswana retirement fund are taxed on half the amount; the other 50% is exempt. Schedule 2 also exempts up to 50% of pension income for someone who doesn't commute part of their pension, but the Act doesn't say clearly whether this covers a foreign pension. Assume a foreign pension is fully taxable until BURS confirms otherwise.

There's no wealth tax. Capital transfer tax applies to gifts and inheritances, with a spouse exemption on death and the first P100,000 of an estate deducted.

👉 BURS: capital transfer tax on gifts and inheritances

Social security

Botswana has no national social security scheme that employees or the self-employed have to pay into, so there's nothing to add to income tax on a salary or on business profits. The BURS tax table says the only deduction allowed from employment income is an employee's contribution to an approved fund.

If your employer offers a retirement fund, your contributions to an approved fund reduce your taxable income, within the 15% limit.

Double tax treaties

Does Botswana have double tax treaties? Yes. BURS publishes 19 tax agreements, including with the UK, South Africa, Namibia, Zimbabwe, Mauritius, India, China, France, Sweden, Ireland, Luxembourg and the UAE. The list doesn't show which are in force, so check the status of a treaty before you rely on it.

Treaties matter more now that Botswana taxes residents on worldwide income. If you're resident in Botswana and another country, the treaty's tie-breaker decides where you're resident, and the treaty decides which country can tax each type of income.

👉 BURS: bilateral tax agreements

Staying long term in Botswana

Botswana has no digital nomad visa. The practical routes are:

• Visiting: foreign nationals can stay 90 days without a residence or work permit. You can apply to extend before the 90 days run out, with a cover letter and a letter from a host in Botswana. Visitors must not work for, provide services to or sell goods to businesses or the public in Botswana.

• Residence permit: for non-citizens who want to stay beyond the visit period, including an "immigrants" category that needs proof of support and a bank statement. The fee is P1,500 for some categories and processing takes about 30 working days.

• Work permit: needed to take a job or run a business in Botswana.

There's no tax exemption for remote workers. Spend 183 days in any 12 months, or set up a permanent home, and you're resident and taxed on worldwide income. A remote worker isn't a temporary resident, because that rule is for people in Botswana for employment there.

👉 Government of Botswana: extension of days of visit (90 days)

👉 Government of Botswana: residence permit application

👉 Government of Botswana: visitor's visa conditions

Who is Botswana good for?

How does Botswana compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026/27 rules and the all-in cost. We convert at P13.4 to US$1, from the Bank of Botswana rate of US$0.0748 per pula on 19 October 2026.

☑️ Who is Botswana good for? Tax ratings for expats in 2026/27

Filing and deadlines

The tax year runs from 1 July to 30 June. Individuals file their return within three months after the year ends, so the 2026/27 return is due by 30 September 2027, with any tax due paid at the same time. You report capital gains on the same return.

Section 124 of the new Act lets some individuals skip the return, mainly employees whose tax is fully deducted through PAYE, but BURS can still ask you to file. Check the conditions with BURS before you rely on it. Employers give you a tax certificate after the year ends.

If you expect to owe P50,000 or more for the year and your income isn't all taxed through PAYE, you pay four quarterly instalments, each 25% of your estimated tax.

👉 BURS: Tax Administration Act, 2026 (returns, assessments and penalties)

Frequently asked questions

Does Botswana tax foreign income?

Yes, from 1 July 2026. Under the Income Tax Act, 2026, residents are taxed on income from all sources inside and outside Botswana, with a credit for foreign tax. Temporary residents and non-residents are taxed only on Botswana income. Foreign employment income taxed where you work is exempt.

Who is a temporary resident in Botswana?

A non-citizen who is resident only because they've come to Botswana to work, for a period of not more than three years. Botswana citizens and permanent residents can't be temporary residents. Temporary residents are taxed only on Botswana income.

What are the income tax rates in Botswana for 2026/27?

Residents pay nothing on the first P48,000, then 5%, 12.5%, 18.75% and 25%, with a new 27.5% rate above P400,000. Non-residents pay 5% from the first pula. There are no social security contributions.

When do I become tax resident in Botswana?

When you have a permanent home in Botswana, or spend 183 days or more there in any 12-month period that starts or ends in the tax year. Part of a day counts as a full day, and short trips away count as days in Botswana.

Is crypto taxed in Botswana?

There are no crypto-specific rules, but crypto is an asset under the Income Tax Act, 2026. A gain on crypto held as an investment is taxed under capital gains tax, at 0% on the first P36,000 rising to 27.5% above P400,000. Trading profits are business income.

Is there an exit tax in Botswana?

Yes. When you stop being resident, section 112(5) of the Income Tax Act, 2026 treats you as selling your assets other than Botswana assets at market value on that date. When you arrive, your foreign assets are treated as bought at market value.

Where to go next

👉 Hardest countries to stop being tax resident

👉 Special tax regimes for new residents

👉 Countries with an exit tax

👉 Lowest-tax countries for expats: 153 ranked