In Zimbabwe, Capital Gains Tax (CGT) is a tax levied on the profit (gain) realized from the sale or disposal of a “specified asset.” It is governed by the Capital Gains Tax Act [Chapter 23:01].The tax is not charged on the total selling price, but rather on the difference between the selling price and the original cost of the asset (including improvements and other allowable expenses).
1. What are Specified Assets?
You only pay CGT if you sell assets that fall into these categories:
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Immovable Property: Land and buildings (including residential houses, commercial buildings, and farms).
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Marketable Securities: Shares in companies, debentures, unit trusts, bonds, and stock.
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Intangible/Mining Rights: Since 2017, this includes the transfer of mining titles, patents, trademarks, and copyrights.
2. Capital Gains Tax Rates
The rate you pay depends on when you acquired the asset and the type of asset:
| Category | Rate |
| Assets acquired AFTER Feb 22, 2019 | 20% of the net capital gain. |
| Assets acquired BEFORE Feb 22, 2019 | 5% of the gross selling price. |
| Listed Marketable Securities (ZSE/VFEX) | 1% Withholding Tax (usually a final tax). |
| Unlisted Marketable Securities | 5% of the gross price or 20% of the gain (depending on acquisition date). |
Note: For 2025, the withholding tax on marketable securities has been revised in many cases to a 1% final tax to encourage trading on the local exchanges.
3. Allowable Deductions
To find your “taxable gain,” ZIMRA allows you to subtract certain costs from your selling price:
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Cost of Acquisition: The original purchase price.
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Improvements: Money spent on additions, alterations, or improvements (e.g., building a wall, adding a pool).
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Selling Expenses: Commissions paid to estate agents, legal fees (conveyancing), and valuation fees.
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Inflation Allowance: An allowance (currently 2.5% per annum) on the purchase price and improvement costs to account for the loss of value over time.
4. Key Exemptions (Who doesn’t pay?)
ZIMRA provides relief in specific scenarios where CGT is not charged:
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Elderly Persons (55+): If you are 55 or older, the sale of your Principal Private Residence (PPR) is entirely exempt from CGT.
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Roll-over Relief: If you sell your main home and use all the proceeds to buy or build another home within a year, you can defer the tax (Roll-over).
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Spousal Transfers: Transferring property between spouses is exempt.
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Deceased Estates: Disposal of assets by an executor from a deceased estate is generally exempt.
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Donations to Charity: Donating property to local authorities or approved trusts/charities.
5. The Clearance Process
In Zimbabwe, you cannot complete the transfer of a property (change of ownership) without a Capital Gains Tax Clearance Certificate.
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Interview: Both buyer and seller (or their agents) may need to attend an interview at ZIMRA.
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Assessment: ZIMRA calculates the tax due based on the Agreement of Sale and proof of costs.
Payment: Once paid, the certificate is issued, which the conveyancer then uses to register the property at the Deeds Office.
6. Frequent asked Questions
- Is CGT paid on a house one inherits from deceased parent(s)?
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- No, amounts received or accrued on the realization or distribution of a deceased estate of a specified asset forming part of such estate are exempt.
- Why do I have to pay CGT on donated property?
- A Donation is a deemed sale and therefore CGT is payable on the capital gain of such a specfied asset.
- Why should I pay CGT tax if I have sold on credit?
- A sale on credit attracts Capital Gains Tax on the capital gain.
