Transfer Duty Amendment Act





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  1. #1
    Join Date
    Feb 2010
    Location
    Gaborone
    Age
    38
    Posts
    946

    Angry Transfer Duty Amendment Act

    Howsit

    So some lovely news in this afternoon...

    From now on if you want to buy commercial or residential property or land in Botswana, you will be charged 30% transfer duty as a non-citizen. (Previously it was 5%).

    I believe if you pay VAT (currently 12%) on the transaction to the seller, then the difference of 18% is applicable.

    Not sure of the final details but considering the currency is 30% stronger then say the ZAR this is going to make premium property here VERY expensive for the average SADC buyer.
    1997 Discovery 1 300tdi - Pussy Galore
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  2. #2
    Join Date
    Jun 2014
    Location
    Fish Hoek
    Age
    61
    Posts
    335

    Default Re: Transfer Duty Amendment Act

    Wow! 30%.....I can understand non-citizens having to pay a premium transfer duty, but 30%! This could be another Bots case of killing the goose that lays the golden egg! I just hope the powers that be have thought about this carefully.

  3. #3
    Join Date
    Mar 2009
    Location
    Gabs Botswana
    Age
    54
    Posts
    168

    Default Re: Transfer Duty Amendment Act

    The 30% and 5% property transfer tax for non-citizens and citizens respectively was passed by parliament in August. Though it still must be promulgated this is a serious concern for us in the property industry and our clients.

    Valuations WILL drop by a minimum of 25% which will erode every investor’s wealth including each and every citizen property owner.

    All the banks’ securities for property loans will be devalued by 25% which in turn will affect the loan to value requirements.

    However, it is not such a bleak picture with regard to commercial properties as these are normally vatable transactions, so no transfer duty is payable for purchases of new buildings from the developer, provided that the developer and the purchaser are VAT registered.

    Taken from a mag ....

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