Capital Gains Tax Zimbabwe 2026

Capital Gains Tax in Zimbabwe — What You Need to Know

Capital Gains Tax (CGT) is levied on the profit made from the disposal (sale, transfer, or exchange) of capital assets in Zimbabwe. It is governed by the Capital Gains Tax Act [Chapter 23:01] and administered by ZIMRA (Zimbabwe Revenue Authority).

CGT applies primarily to two categories:

• Immovable property — land, buildings, houses, commercial premises
• Marketable securities — shares, debentures, and other financial instruments

Current CGT Rates (2026)

Asset Type	CGT Rate	Withholding Tax	Effective Rate (incl. AIDS Levy)
Immovable property (land, buildings)	20% of capital gain	15% of gross sale price (provisional)	20.6%
Listed shares (ZSE)	1% of gross proceeds	1% collected by stockbroker	1.03%
Unlisted shares	20% of capital gain	Varies	20.6%
Other specified assets	20% of capital gain	As prescribed	20.6%

The 3% AIDS levy applies on top of the base CGT rate, bringing the effective rate to 20.6% on property and unlisted share gains.

How CGT on Property Sales Works

When immovable property is sold in Zimbabwe, CGT operates through a two-stage process:

Stage 1: Withholding Tax at Point of Sale (15%)

The conveyancer (transfer attorney) handling the property transfer must withhold 15% of the gross sale price and remit it to ZIMRA. This is collected before the transfer can be registered at the Deeds Registry.

• The 15% is a provisional payment against the final CGT liability
• It ensures ZIMRA collects tax upfront, before the seller receives all proceeds
• The conveyancer issues a withholding tax certificate

Stage 2: Final CGT Assessment (20%)

When you file your annual tax return, you calculate the actual capital gain and the true CGT at 20%. If:

• The 15% withholding exceeds the actual CGT — you claim a refund from ZIMRA
• The 15% withholding is less than the actual CGT — you pay the difference

Calculating Capital Gains Tax

The capital gain is calculated as:

Allowable Deductions

• Original cost price: What you paid for the property (purchase price)
• Capital improvements: Extensions, renovations, new structures, major upgrades that increase the property’s value (keep all receipts)
• Selling expenses: Estate agent commissions, conveyancer fees, advertising costs
• Cost inflation adjustment: ZIMRA prescribes cost inflation factors to adjust for currency devaluation, applied to the original cost and improvements

Non-Allowable Deductions

• Routine maintenance and repairs
• Painting, gardening, or cosmetic work
• Insurance premiums
• Rates and levies

Calculation Example

Item	Amount (USD)
Sale price of property	$150,000
Original purchase price	$80,000
Capital improvements (extension, new roof)	$15,000
Selling expenses (agent, conveyancer)	$5,000
Adjusted cost base	$100,000
Capital gain	$50,000
CGT at 20%	$10,000
AIDS levy at 3%	$300
Total CGT liability	$10,300
15% withholding at sale (15% × $150,000)	$22,500
Refund due from ZIMRA	$12,200

In this example, the 15% withholding ($22,500) exceeds the actual CGT ($10,300), so the seller would claim a refund of $12,200 from ZIMRA when filing their annual return.

CGT Exemptions

The following disposals are exempt from capital gains tax:

Principal Private Residence Exemption

The gain on the sale of your principal private residence (main home) is exempt from CGT if:

• You have owned and occupied the property as your primary residence for at least 2 continuous years before the date of sale
• The exemption applies up to a prescribed threshold — gains above the threshold may be partially taxable
• Only one property can qualify as your principal private residence at any given time

Other Exemptions

• Transfers between spouses: No CGT on property transferred between married spouses (roll-over relief)
• Transfers on death: Certain transfers to estates or heirs may be exempt or attract roll-over relief
• Transfers to the State: Property transferred to the government is exempt
• Specified agricultural land: Certain transfers under government agricultural programmes
• De minimis: Very small gains below a prescribed threshold

CGT on Shares and Securities

Listed Shares (Zimbabwe Stock Exchange)

The sale of shares listed on the Zimbabwe Stock Exchange (ZSE) or the Victoria Falls Stock Exchange (VFEX) is subject to a simplified regime:

• Rate: 1% of the gross sale proceeds (not the gain)
• Collection: Deducted by the stockbroker at the point of sale
• No further CGT calculation required — the 1% is the final tax

Unlisted Shares

Disposal of shares in private companies (unlisted) is subject to the full 20% CGT on the actual capital gain:

• Gain = Sale proceeds minus original cost of acquiring the shares
• Relevant for selling your stake in a Pvt Ltd or PBC
• Seek professional valuation for unlisted shares to establish fair market value

CGT on Selling a Business

Selling a Zimbabwe business can take two forms, each with different CGT implications:

Method	CGT Treatment
Share sale (sell the company shares)	Listed: 1% of proceeds. Unlisted: 20% on gain.
Asset sale (sell individual business assets)	Each asset taxed separately. Immovable property: 20% CGT. Equipment: recoupment rules under Income Tax Act. Goodwill: potentially CGT at 20%.

CGT for Non-Residents and Diaspora

Non-residents who dispose of Zimbabwe immovable property or shares are subject to CGT on the same basis as residents. Key considerations for diaspora property owners:

• The 15% withholding tax is deducted at source — you do not need to be in Zimbabwe
• You must file a Zimbabwe tax return to claim any refund of excess withholding
• Check the double taxation agreement between Zimbabwe and your country of residence to avoid paying CGT twice
• South Africa (DTA exists), UK (DTA exists), Australia (no DTA — claim FITO), Botswana (DTA via SADC)

How to Pay CGT / Obtain Clearance

1. Conveyancer withholds 15% from the sale proceeds at point of transfer
2. Conveyancer remits the 15% to ZIMRA and obtains a withholding certificate
3. Transfer is registered at the Deeds Registry
4. Seller files annual tax return with ZIMRA, declaring the disposal
5. ZIMRA assesses the final CGT and either issues a refund or requests the balance due

Record-Keeping Requirements

To correctly calculate CGT and support your tax return, keep the following records:

• Original purchase agreement and proof of payment
• Receipts for all capital improvements (with dates and descriptions)
• Selling agreement and proof of sale price
• Estate agent commission invoices
• Conveyancer fee notes
• Withholding tax certificates
• ZIMRA assessment notices

ZIMRA requires you to keep tax records for at least 6 years from the end of the tax year in which the disposal occurred.

Key Legislation

• Capital Gains Tax Act [Chapter 23:01] — Primary legislation governing CGT in Zimbabwe
• Income Tax Act [Chapter 23:06] — Interacts with CGT for business asset disposals and recoupments
• Finance Act (annual) — Updates rates, thresholds, and exemptions each year
• ZIMRA Practice Notes — Published guidance on CGT administration and interpretation