Known for its warm hospitality, stunning natural wonders like Victoria Falls, and a stable economy, Zambia is an increasingly popular destination for expats working in mining, agriculture, conservation, and development.
In this guide, we’ll walk you through everything you need to know about relocating to Zambia 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.
Zambia follows a territorial taxation model. You will pay tax on local sourced incomes only, irrespective of your resident status.
if you spend more than 182 days in Zambia during the tax year.
Providing that your business profits are no more than ZMV 800,000, profits will be subject to a flat taxation rate of 4%. Zambia can be a very tax efficient place to live for entrepreneurs and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
Up to ZMV 800,000.
4% flat rate.
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 the Zambia, you may find that the source country, as a starting point, continues to tax the income.
Double taxation agreements may remove the source country’s taxing right and thus, enable you to receive incomes tax free globally.
At present, Zambia has 23 double taxation agreements signed.
