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MOZAMBIQUE
We have a team of experienced professionals dedicated to supporting all your business requirements—ensuring smooth operations and full regulatory compliance. This strong foundation enables you to confidently establish and grow your business in Mozambique with efficiency and assurance.
WHY MOZAMBIQUE?
Mozambique, officially the Republic of Mozambique, is a country located in Southeast Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west, and Eswatini and South Africa to the south and southwest. The sovereign state is separated from the Comoros, Mayotte, and Madagascar through the Mozambique Channel to the east. The capital and largest city is Maputo. Mozambique poses as an attractive country for investment for several reasons. It is located along the Indian Ocean, which makes it a gateway for trade between Africa, Asia, and beyond. The nation’s abundant natural resources, including vast reserves of natural gas, coal, and minerals, also offer lucrative opportunities for investors. It also has several emerging opportunities in industries such as agriculture and tourism, given the government’s efforts to encourage economic growth and development in these sectors.
Mozambique’s economy is diverse and thriving. The country experienced a Gross Domestic Product (GDP) growth rate of 5% in 2023, up from 4.4% in 2022. This positive trajectory is attributed to the robust performance of industries like the extractive industry, agriculture, and tourism. The extractive industry, encompassing mining and natural gas extraction, is a major contributor to the nation’s economy. In 2022, the extractive sector accounted for 10.55% of the GDP, and this figure rose to 42.71% in the second quarter of 2023. The tourism sector is also gaining momentum, with Mozambique’s beaches, rich cultural heritage, and diverse wildlife attracting visitors. The government is making efforts to enhance infrastructure and promote the country’s attractions.
ADVANTAGES
Natural Resources:
Abundant reserves of natural gas (world’s 4th largest), coal, and potential in agriculture.
Strategic Location & Market Access:
Long coastline, ports, and access to SADC, EU, US (AGOA) markets, and growing Asian economies (China, India, Japan).
Investment Incentives:
Tax holidays, VAT/duty exemptions on imports, accelerated depreciation, and simplified licensing for priority sectors (Agri, Energy, Tourism).
Economic Growth:
Fast-growing East African economy with diversification into telecom, manufacturing, finance.
Infrastructure Development:
Major investments in ports, railways, energy, and digital access (World Bank projects).
Pro-Business Environment:
Government focus on ease of doing business, simplified registration, and strong investor protection.
Favourable Regulations:
Open foreign exchange rules allowing free remittance of funds.
Workforce & Language:
Growing skilled workforce (MozSkills) and English widely spoken in business alongside Portuguese.
Lower Costs:
Tax and duty benefits reduce initial setup and operational expenses.
Growth Opportunities:
Tap into booming sectors like energy (LNG), agriculture, and infrastructure.
Export Potential:
Easier access to major global markets.
Simplified Setup:
Faster business registration through online platforms.
SIMPLE TAX REGIME
Corporate Income Tax (IRPC)
- Standard Rate: 32% for both domestic and foreign companies.
- Reduced Rate (Agriculture & Transport): A 10% rate applies to agriculture, aquaculture, and urban transport activities through December 31, 2025.
- Withholding Tax (WHT): In general 20% on dividends, interest, royalties, and services paid to non-residents.
- Autonomous Taxation: Unsubstantiated or illicit expenses are taxed separately at 35%.
Personal Income Tax (IRPS)
- Resident Rates: Progressive rates from 10% to 32%.
- 0 – 42,000 MZN: 10%
- 42,001 – 168,000 MZN: 15%
- 168,001 – 504,000 MZN: 20%
- 504,001 – 1,512,000 MZN: 25%
- Above 1,512,000 MZN: 32%
- Non-Resident Rate: A flat 20% rate is typically withheld at the source.
Value Added Tax (VAT)
- Standard Rate: 16% as of 2025.
- Reduced Rate: 5% for specific medical, educational, and vocational services.
- Zero-rated Items: Includes basic foodstuffs (bread, rice, maize flour), exports, and international transport.
Other Key Taxes
- Social Security: 7% total (4% paid by the employer, 3% by the employee).
- Property Transfer Tax (SISA): 2% on real estate transfers; 10% if the buyer resides in a tax haven.
- Stamp Duty: Varies from 0.03% to 50% depending on the document or transaction type (e.g., 0.2% for real estate transfers, 0.4% for share transfers).
- Excise Duty: Levied on tobacco (75%), alcoholic beverages (40%-55%), and luxury goods like boats or aircraft.
Fiscal Incentives & Special Zones
- Industrial Free Zones (IFZ): CIT exemption for the first 10 years, followed by 50% and 25% reductions in subsequent years.
- Special Economic Zones (SEZ): 3 to 5-year initial tax exemptions followed by progressive rate reductions.
- Capital Gains: Generally included in taxable business income at 32%. For shares, the taxable portion of the gain is reduced based on the holding period (e.g., only 30% of the gain is taxable if held over 5 years).
MOZAMBIQUE COMPANIES
Sociedade por Quotas (Lda) (Limited Liability Company):
Most common for SMEs, requires at least 2 members (quotaholders, can be 1 for a single-person version) and offers limited liability, similar to a UK Private Limited Co.
Sociedade Anónima (SA) (Public Limited/Share Company):
For larger investments, capital divided into shares, minimum one shareholder, suitable for public listing.
Sociedade em Nome Colectivo (General Partnership):
Partners have unlimited liability.
Sociedade em Comandita (Limited Partnership):
Combines general (unlimited liability) and limited partners.
Sociedade Unipessoal por Quotas (Single-Person Quota Company):
A limited liability company with just one member.
Branch/Representative Office:
For foreign companies to operate through a local presence, without forming a separate Mozambican entity.
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Contact Us
Get in touch with the right people to get the right help in setting up your business in ESWATINI.
enquiries@chandrawatpartners.com.