From the vibrant city life of Dar es Salaam to the serene shores of Zanzibar and the wildlife-rich plains of the Serengeti, Tanzania offers expats a unique blend of culture, adventure, and opportunity.
In this guide, we’ll walk you through everything you need to know about relocating to Tanzania 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.
Tanzania 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 spend more than 182 days in Tanzania during the tax year.
if you spend more than 122 days in Tanzania in the current and previous two tax years.
if your main residence is located in Tanzania during the tax year.
Providing that you are considered a short term resident, foreign incomes and gains will be exempt from taxation in Tanzania for two years. Tanzania can be a very tax efficient place to live for expats and nomads and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
Exempt from Tanzania taxation.
Applied for two years.
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 Tanzania, 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, Tanzania has nine double taxation agreements signed.
