ZIMRA Tax Obligations for Zimbabweans Living Abroad: What You Still Owe Back Home

Many Zimbabweans in the UK assume that once they leave Zimbabwe, their tax obligations leave with them. That assumption can be costly. Zimbabwe operates a source-based tax system, meaning that income arising from a source within Zimbabwe — or deemed to arise within Zimbabwe — is taxable there, regardless of where the recipient lives. Your residential status abroad is largely irrelevant to ZIMRA; what matters is where the money comes from. ## The Source-Based Tax Principle Under Section 12 of the Income Tax Act [Chapter 23:06], Zimbabwe taxes income at the source, not at the residence of the taxpayer. This means: - Rental income from a property in Harare is taxable in Zimbabwe whether you live in Harare or Harlesden. - Dividends paid by a Zimbabwean company to a non-resident shareholder attract withholding tax. - Royalties, management fees, and professional fees paid from Zimbabwe to non-residents are subject to non-resident withholding tax. - Business income generated from trade carried on in Zimbabwe remains taxable there. There is one notable exception for employment income: if you are working entirely outside Zimbabwe for a foreign employer with no connection to a Zimbabwean trade, that income is generally not taxable in Zimbabwe. However, if you are rendering services outside Zimbabwe in pursuance of a trade carried on in Zimbabwe, the income remains taxable in Zimbabwe regardless of how long you have been away — even beyond 183 days. ## Rental Income: The Area of Greatest Exposure for Diaspora Property Owners Owning property in Zimbabwe while living abroad is common in the Zimbabwean diaspora, and it creates clear, active tax obligations. Rental income forms part of gross income under Section 8(1) of the Income Tax Act and is subject to corporate income tax at 25% for companies, with applicable personal income tax rates for individuals. Zimbabwe has also introduced a Presumptive Rental Income Tax specifically targeting commercial properties, which operates independently of other tax obligations. Key points for diaspora landlords: - **Non-resident landlords must appoint a resident representative in Zimbabwe.** This person becomes responsible for local compliance on your behalf. Without one, ZIMRA can pursue tenants or agents directly. - **Mandatory ZIMRA registration** is required for properties generating rental income. This applies whether you are letting through an estate agent or directly. - **Estate agents have expanded liability** — they are required to verify tax compliance before disbursing rental proceeds to landlords. If your agent pays you without ensuring tax compliance, they face exposure. - **Tenants can be required to withhold and remit tax** directly to ZIMRA if a landlord or agent fails to comply. A 10% withholding tax applies where tenants in the informal sector are not tax compliant. - **Commercial property** falls within the scope of the Presumptive Rental Income Tax. Purely residential rentals are currently outside its scope, though standard income tax still applies. - **Penalties for non-compliance** include assessments, interest charges, and enforcement proceedings. ## Remitting Rental Income to the UK The good news is that rental income earned in Zimbabwe can be remitted abroad legally and without prior Reserve Bank of Zimbabwe (RBZ) approval — provided you follow the correct process. According to RBZ policy, rentals due to non-resident Zimbabweans from formally acquired residential immovable property are freely remittable, as long as a signed copy of the lease agreement is lodged with an authorised dealer (a commercial bank licensed to handle foreign currency transactions). To remit rental income, you will need: - A formally executed, signed lease agreement lodged with an authorised dealer bank - Proof that local taxes on the rental income have been settled with ZIMRA - Proper records including bank lodgement slips and tax payment receipts Verbal agreements or informal arrangements do not qualify. And critically — local taxes must be paid before remittance. Attempting to extract rental income without settling ZIMRA obligations first creates both tax and banking compliance risk. ## Non-Resident Withholding Tax on Other Payments In April 2026, ZIMRA issued Public Notice 24 of 2026 reminding all local taxpayers of their obligations when making payments to non-residents. Taxes are payable on payments made to non-residents in respect of: - Royalties - Dividends - Management fees - Professional fees - Imported services The standard withholding tax rate is 15%, though this can be reduced under Double Taxation Agreements (DTAs) that Zimbabwe has in place with certain countries. Zimbabwe and the UK do have a DTA, which may reduce your withholding tax exposure on certain income types — but you must actively apply for treaty relief; it is not automatic. ZIMRA set a deadline of 30 April 2026 for taxpayers to regularise outstanding non-resident payments, with audits and enforcement action threatened for those who miss it. ## Capital Gains Tax on Property Sales If you sell an immovable property or marketable securities in Zimbabwe, Capital Gains Tax (CGT) applies. This is not affected by your residence abroad. If you are planning to sell a property in Zimbabwe while living in the UK, factor CGT into your calculations and ensure the proceeds are repatriated through the correct channels. ## Practical Steps for Diaspora Zimbabweans - **Register with ZIMRA** if you own property or receive any Zimbabwe-sourced income. Registration is mandatory, not optional. - **Appoint a local representative** — an accountant, lawyer, or trusted family member — who can manage compliance obligations on your behalf. - **Keep records** of lease agreements, tax payments, and bank lodgements. ZIMRA requires records to be kept for at least six years. - **Check whether a DTA applies** to your specific income type to avoid being taxed twice — once in Zimbabwe and again in the UK. - **Engage a tax advisor** familiar with both Zimbabwean and UK tax law, particularly if your financial arrangements span both countries.