The government of Botswana is introducing tough new laws for foreigners intending to buy property.
The new Transfer duty act was passed by the Botswana parliament towards the end of 2019.
Under this act, there will be massive differences in the transfer duty paid by foreigners and that paid by locals.
Before this act, transfer duty was 5% across the board for any property buyer.
However, under the new Transfer Duty Act, starting 1 March, Botswana citizens will not need to to pay transfer duty for property under P1 Million if they are buying their first property.
Foreigners will now pay 30% transfer duty for any property they buy in Botswana.
Dr Wilbert Mutoko suggests that the best option for foreigners intending to buy property in Botswana will be to buy a plot at a cheaper amount and then develop it.
Many analysts believe that this new law will result in the Botswana property market crashing as most of the property in Botswana has been bought by foreigners, this new act will result in more supply than demand.
However, on the positive side, this new act could result in the growth of the construction and materials supply industries.
