Africa · ETB
Ethiopia
Reviewed 2026-06-21
Top income tax
35%
Self-employed SS
Optional
VAT
15%
Capital gains
15%
Exit tax
No
Nomad visa
No
55
/ 100
Tax efficiency41
Ease to enter50
Ease to exit93
Cost of living86
Internet2
English25
Ethiopia taxes resident individuals on worldwide income using a progressive scale that tops out at 35% above roughly 168,000 ETB of annual income, while the corporate rate sits at a flat 30% and VAT is 15%. There is no wealth, inheritance, gift, or exit tax, and capital gains on shares and buildings are taxed at 15% with an exemption for a primary residence held at least two years. Self-employed solopreneurs are not required to join the pension scheme and there is no digital nomad visa, though a multi-year investor visa is available.
Personal income tax
Income tax structureProgressive
Top income tax rate35%
Entry income tax rate15%
Top rate threshold$1,050
Taxation basisWorldwide
Local/state income taxNo
Social security
Self-employed social securityOptional
Employee SS rate7%
Employer SS rate11%
Indirect & other taxes
VAT standard rate15%
Capital gains rate15%
Long-hold CGT exemptionYes
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate30%
WHT on dividends15%
CFC rulesNo
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaNo
Entrepreneur visaYes
Ease of setup2 / 5
Lifestyle
Cost of living index37
Internet speed22 Mbps
English proficiencyLow
Civil liberties17
Sources
- PwC Worldwide Tax Summaries — Ethiopia Individual: Taxes on personal income
- PwC Worldwide Tax Summaries — Ethiopia Corporate: Taxes on corporate income & Other taxes (CIT, VAT, CGT)
- PwC Worldwide Tax Summaries — Ethiopia Individual: Other taxes & Residence (pension, residency)
- US SSA — Social Security Programs Throughout the World: Ethiopia
- Ethiopian Investment Commission — Live and Work in Ethiopia (investor visa)
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.