Every property sale in Zimbabwe triggers a Capital Gains Tax obligation under the Capital Gains Tax Act [Chapter 23:01]. The rate depends on when you originally bought the property, whether it is your primary residence, and how ZIMRA calculates the gain. Most sellers discover their CGT liability at the point of transfer, which is too late to plan around it. This article tells you how to calculate it before you sign the sale agreement.
When you sell a property in Zimbabwe, you do not keep all the proceeds. A portion goes to ZIMRA as capital gains tax on the profit you made. The amount depends on when you originally bought the property, not how long you held it. Sellers who do not understand this before listing a property sometimes discover at transfer stage that their net proceeds are significantly lower than they expected. This guide explains what the tax is, how ZIMRA calculates it for properties bought at different times, what can legitimately reduce it, who qualifies for an exemption, and what happens if you are selling a property held through a company rather than in your own name.
The seller pays capital gains tax. It is not the buyer's obligation. In practice, the seller never writes a cheque to ZIMRA directly. The conveyancer handling the transfer withholds the tax from the sale proceeds and pays it to ZIMRA. This happens automatically as part of the transfer process, and transfer cannot be registered at the Deeds Registry until ZIMRA issues a CGT clearance certificate confirming the tax has been settled.
The conveyancer withholds 15% of the total sale price as Capital Gains Withholding Tax (CGWT) and pays it to ZIMRA within three working days of receiving the funds. This 15% is a security deposit against the final CGT assessment. Once ZIMRA completes the assessment, the difference between what was withheld and what is actually owed is either collected from the seller or refunded to the seller.
Zimbabwe's CGT rate on property does not change based on how long you owned the property. It changes based on when you originally bought it. There are three bands.
| When you bought the property | How CGT is calculated | Practical effect |
|---|---|---|
| Before 1 February 2009 | 5% of the gross sale price | You pay 5% of whatever you sell for, regardless of what you paid originally |
| Between 1 February 2009 and 22 February 2019 | 5% of the sale price, no deductions allowed | The same: effectively 5% of the sale price, since no costs can be subtracted |
| After 22 February 2019 | 20% of the actual capital gain, with deductions allowed | 20% of the difference between what you sell for and what you paid, after allowable costs |
Properties bought before 2009 are treated simply. ZIMRA takes 5% of whatever price the property sells for. The original purchase price and improvement costs are not subtracted.
Properties bought between 2009 and February 2019 follow the same effective outcome. Although the CGT Act says 5% of the "capital gain," the deductions that would create a true gain calculation are not permitted for this period under Section 11 of the Capital Gains Tax Act [Chapter 23:01]. The result is 5% of the sale price.
Properties bought after 22 February 2019 carry a 20% rate but against the actual profit. The deductions discussed below apply to this band only.
For properties bought after 22 February 2019, the capital gain is the sale price minus allowable deductions. The deductions ZIMRA permits are:
ZIMRA uses whichever is higher, the agreed sale price or ZIMRA's own assessment of the property's market value. If ZIMRA's valuer concludes the property is worth more than what you agreed to sell it for, your CGT is calculated on ZIMRA's figure. You have the right to challenge a ZIMRA valuation you believe is too high by submitting a registered valuer's report. Do not accept an inflated ZIMRA figure without checking it against an independent valuation.
A property bought in 2021 for US$80,000, held for four years, sold in 2025 for US$130,000.
| Item | Amount |
|---|---|
| Sale price | US$130,000 |
| Original purchase price | US$80,000 |
| Capital improvements (documented) | US$8,000 |
| Inflationary allowance (2.5% x US$80,000 x 4 years) | US$8,000 |
| Agent commission (5% of sale price) | US$6,500 |
| Total deductions | US$102,500 |
| Capital gain | US$27,500 |
| CGT at 20% | US$5,500 |
Without the inflationary allowance and documented improvement costs, the gain would be US$43,500 and the CGT would be US$8,700. Keeping records of improvements and claiming every permitted deduction matters.
If you are 55 or older and selling your primary home. If you are 55 or above at the date of sale, and the property is the home you have been living in as your main residence, no CGT is payable. This is a full exemption you must claim in your CGT return when lodging with ZIMRA.
If you are reinvesting all the proceeds into a new home. If you sell your primary residence and use all of the sale proceeds to buy or build a new primary residence, no CGT is payable on the transaction. This is called the PPR rollover. If you only reinvest part of the proceeds and keep the rest, CGT applies to the portion you did not reinvest. The election to claim the rollover must be made no later than the date you submit your CGT return.
Other exempt situations. Transfers of property between spouses carry no CGT. The same applies to a transfer of a matrimonial home between former spouses following a divorce court order, and to transfers as part of a deceased estate distribution.
The exemptions are available only to individuals, not companies. If the property is held in a company's name, none of these exemptions apply.
If you live outside Zimbabwe and are selling a property here, the same CGT rates apply. The 15% CGWT withholding by the conveyancer still applies. The additional consideration for sellers based abroad is that ZIMRA's assessment and the refund of any over-withheld tax can be slow. If the final CGT is lower than the 15% that was withheld, ZIMRA should refund the difference. In practice, refund turnaround from ZIMRA takes time and you should not plan your cash flow around receiving a quick refund. Factor that gap into your financial planning before the sale closes.
Some properties in Zimbabwe are owned not by an individual but by a private company. When someone buys such a property, they sometimes acquire it by purchasing the shares in the company that owns the property, rather than buying the property itself. This approach has historically been used partly to avoid or reduce transfer costs.
The Finance Act No. 7 of 2025 closed this route by inserting Section 30C into the Capital Gains Tax Act [Chapter 23:01], effective from 1 January 2026. Under Section 30C, the transfer of shares or any interest in a "land-holding entity" (any company or entity that owns land or immovable property in Zimbabwe at the date of transfer) is now subject to a Special Capital Gains Tax at 20% of the total value of the transaction.
This applies regardless of where the deal is concluded. A share transfer in a Zimbabwe property-owning company that is structured offshore and signed in another country is still subject to Section 30C. If ownership of the shares is later disputed in Zimbabwe's courts, the court will not recognise the transfer as valid unless the transferee can produce a CGT clearance certificate confirming the Section 30C tax was paid.
If you are being offered the opportunity to acquire a property by buying shares in the company that owns it, understand that this route now carries its own 20% SCGT liability, and that liability cannot be avoided by structuring the deal offshore. Get tax advice from a practising Zimbabwean tax practitioner before signing.
The CGT clearance certificate is a hard requirement for transfer. The Deeds Registry will not register the change of ownership without it. The process is:
The conveyancer lodges a CGT return with ZIMRA on the seller's behalf, with the agreement of sale, the title deed, and documentation supporting any deductions or exemptions being claimed. ZIMRA assesses the return, may request additional documentation, and if satisfied issues the clearance certificate. The conveyancer pays any balance owed from the withheld funds, or applies for a refund of the excess.
Under normal conditions with a complete file, clearance takes two to six weeks. Incomplete files, ZIMRA queries, or claims for exemptions that require additional documentation extend this timeline. Factor the clearance process into your transfer timeline from the beginning, not as an afterthought once the rest of the transaction is ready.
One confirmed rule from the courts: ZIMRA is not permitted to refuse to assess and issue the clearance certificate once the tax has been paid. This was confirmed in the case of Sabeta M v Commissioner General, Harare High Court, 2012 (HH-079-12). If payment has been made and ZIMRA delays the certificate, this judgment supports a legal demand for it.
