When transferring property (buying, selling, gifting, or inheriting), a correct valuation is crucial for:
✔ Calculating Transfer Duty (tax paid to BURS)
✔ Determining Capital Gains Tax (CGT) if applicable
✔ Ensuring fair transaction pricing
✔ Bank bond approvals (if financing is involved)
Here’s how property valuation works for transfers in Botswana:
📌 When is a Transfer Valuation Needed?
Private Sale/Purchase – BURS may question low prices.
Gifts/Donations – Valued for tax implications.
Divorce Settlements – Fair market value required by court.
Estate Transfers (Deceased Estate) – Master of the High Court requires valuation.
Company Asset Transfers – Needed for tax and accounting compliance.
📊 Determining Transfer Value
Council Rating Valuation (Not Always Reliable) – Outdated and used for rates & taxes, often 30–50% below real market value.
Professional Valuation (Most Accurate for BURS & Banks)
✅ Done by a registered valuer (Belfort Properties)
✅ Considers: recent sales, location, size, condition, zoning, market trends
✅ Cost: P1,500 – P15,000 (depending on property value)
BURS’s Valuation (In Case of a Price Dispute)
If there is suspicion of under-declaration, BURS may impose:
Transfer Duty based on their higher valuation.
Penalties and Interest for tax evasion.
⚠️ Common Errors to Avoid
❌ Using outdated Council Rating valuations – May result in BURS penalties.
❌ Underreporting to reduce transfer duty – Can lead to BURS audits and fines.
❌ Failing to value inherited property – Executors are required to declare market value.
❌ Disregarding professional valuations for company-owned property – BURS mandates it.
Documents Required for Property Transfer
✔ Title Deed (Proof of ownership)
✔ Rates Clearance Certificate (Council rates payments are up to date)
✔ Transfer Duty Receipt (Proof of payment to BURS)
✔ Valuation Report (If required by BURS or the bank)
✔ Sale Agreement (Signed OTP)
