Africa is the pearl of the world; this culturally diverse continent is a super attractive retirement destination, with a pleasant climate all year round, low cost of living, and friendly neighbors.
One thing we liked about life in Africa is that you can live a super comfortable life with a small budget. There are tons of thriving ecosystems scattered across the continent.
It’s safe to say that the entire continent is buzzing with beauty, life, art, and culture.
If you are traveling to Africa, the good news is that you may never have to pay taxes throughout your stay. Most of the agencies charged with the duty of collecting taxes are poorly funded and have underdeveloped facilities.
This means that you can enjoy life in almost any part of the continent without having to worry about taxes.
With that said, here are some of the countries in Africa with the lowest tax rates.
1. Botswana
Aside from having one of the lowest tax rates in Africa, Botswana has one of the fastest-growing economies in the world, averaging about 6% per annum since 2009.
Tourism is one of the biggest industries in Botswana; it accounts for almost 12% of the country’s GDP. The main safari destinations for tourists are Moremi Game Reserve, Chobe National Park, the Okavango Delta, and Botswana’s Central Kalahari Game Reserve.
Botswana uses a source-based taxation system.
Corporations in the country enjoy a flat rate of 22% while manufacturing companies can enjoy a special rate of 15% when approved by the Minister of Finance.
PIT is as low as 20% in Botswana. The first 36,000 BWP is tax-free but will be taxed 25% of your income if you earn above 144,000 BWP.
You will be considered a taxable resident in Botswana if Botswana is your permanent place of abode is in Botswana or lived in the country for more than 183 days in a tax year.
As long as you are considered a resident, you have to submit your annual tax returns for the previous tax year before the end of September.
You have to file your taxes on your annual gross income under the PAYE salary deduction system. Withholding taxes also apply to certain categories of income.
Non-residents living in the country are required to register as taxpayers and comply with all policies and obligations in the same way as residents.
2. Côte d’Ivoire
Ivory Coast is another African country that offers you a tax-free stay regardless of your nationality or immigration status. Non-residents are taxed in the same way as a resident in Côte d’Ivoire.
Foreign Individuals living in the Ivory Coast are subject to a specific direct income tax. Tax rates are usually below 10% of your income [depending on your work and the kind of revenue earned].
The standard corporate tax rate as imposed under the General Tax Code (GTC) is a flat 25% rate.
However, companies in the telecommunication, information technology, and communication sectors are taxed 30% of their income.
A company will be seen as a tax resident in Côte d’Ivoire if it has its center of control of management or incorporated in Ivory Coast. These companies are taxed on all income or revenues sourced, generated, or received under the Ivorian tax jurisdiction.
Non-resident entities on the other hand are subject to withholding tax of 20% if there are no double tax treaties (DTTs) on their income when they do not have a permanent establishment (PE).
The main source of revenue from the state comes from taxes on industrial and commercial profits, non-commercial profits, income from transferable securities, land, and agricultural products.
3. Cameroon
Although residents in Cameroon are taxed on their worldwide income, it is one of the few countries in Africa with the lowest tax rates.
You will be seen as a tax resident in Cameroon if your principal center of interest, business, or place of abode is in Cameroon. If you are a tourist, you will be considered a taxable resident if you stay longer than 183 days in a tax year.
Nonresidents are taxed only on their Cameroon-source income. Taxes are levied at a progressive rate from 11% to 38.5% for individuals and 30% for companies situated in the country.
A single income tax applies to the net total income derived from various sources including salaries, wages, pensions, and life annuities, profits from handicraft, income from stocks and shares, real estate profits, profit from industrial or commercial activities, profits from agricultural, non-commercial, or related professions.
The tax rates on corporations domiciled in the country are also determined by the profits earned by entities (for resident companies) or transactions effected in Cameroon (for non-residents entities having a permanent establishment in Cameroon).
Just in case you are considering visiting other African countries, the table below contains the tax rates in other African states.
Country | Individual Taxes | Corporate Taxes | Social Insurance Taxes | Value-Added Taxes (VAT) |
| Botswana | 25% | 22% | 0% | 34% |
| Burkina Faso | 7% | 15% | 9% | 36% |
| Cabo Verde | 20% | 12% | 0% | 36% |
| Cameroon | 6% | 13% | 7% | 36% |
| Congo | 24% | 18% | 0% | 29% |
| Côte d’Ivoire | 0.3% | 11% | 11% | 20% |
| Democratic Republic of the Congo | 17% | 19% | 7% | 29% |
| Egypt | 9% | 27% | 15% | 21% |
| Equatorial Guinea | 11% | 66% | 0% | 12% |
| Eswatini | 30% | 17% | 13% | 24% |
| Ghana | 14% | 17% | 9% | 28% |
| Kenya | 24% | 12% | 2% | 24% |
| Madagascar | 11% | 12% | 3% | 48% |
| Mali | 7% | 16% | 10% | 29% |
| Mauritania | 12% | 20% | 2% | 31% |
| Mauritius | 9% | 14% | 4% | 34% |
| Morocco | 13% | 17% | 19% | 27% |
| Niger | 8% | 18% | 6% | 30% |
| Nigeria | 15% | 44% | 10% | 14% |
| Rwanda | 22% | 17% | 6% | 28% |
| Senegal | 15% | 9% | 7% | 34% |
| Seychelles | 14% | 21% | 0% | 33% |
| South Africa | 34% | 16% | 2% | 22% |
| Togo | 7% | 10% | 0% | 43% |
| Tunisia | 20% | 7% | 30% | 20% |
| Uganda | 24% | 6% | 0% | 31% |
