East & Southern Africa
Eritrea tax rates 2026
One of only two countries that tax their diaspora on the basis of nationality, through a 2% levy on citizens abroad. Domestic rates are progressive and administration is opaque.
Citizenship-based
Last verified Some figures indicative
The taxes
| Personal income (top) | 30%Progressive bands rising to 30% on salary income. |
|---|---|
| Corporate income | 30% |
| Capital gains | Included in ordinary income. |
| VAT / Sales tax | 5% |
| Dividends (WHT) | 10% |
| Interest (WHT) | 10% |
| Royalties (WHT) | 10% |
| Social security (employee) | None |
| Social security (employer) | None |
| Wealth tax | None |
| Inheritance / estate | None |
| Property tax | Property tax applies in principle. |
| Other | Eritrea levies a 2% recovery and rehabilitation tax on the worldwide income of citizens living abroad, a practice condemned in UN Security Council Resolution 2023 (2011). |
How the system works
- Tax system
- Citizenship-based
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- Yes
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
- Special regime
- 2% diaspora tax on the income of Eritrean citizens resident abroad
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.