This landlocked West African nation may be off the beaten path for many, but it offers expats a rich cultural heritage, vibrant local communities, and a deeply rooted sense of tradition.
In this guide, we’ll walk you through everything you need to know about relocating to Burkina Faso from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Burkina Faso follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if you are employed by an entity incorporated in Burkina Faso.
if your main residence is in Burkina Faso during the tax year.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Burkina Faso, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Burkina Faso has three double taxation agreements signed.
