Djibouti Tax Rates
Djibouti operates a progressive personal income tax system with rates up to 30%. The Direction des Impôts administers the system, featuring a 25% corporate tax rate and 10% VAT. Djibouti's strategic location at the entrance to the Red Sea makes it a vital trade hub, with its economy driven by port services, logistics, and military base leases.
Top Income Tax Rate
30%
Corporate Tax Rate
25%
VAT / Sales Tax
10%
Capital Gains Tax
10%
Detailed Tax Information
Income Tax Brackets
Djibouti levies progressive income tax with rates from 2% to 30%. Employment income is subject to withholding. Free zone employees may benefit from exemptions.
| Income Range | Tax Rate |
|---|---|
| Fdj 0 – Fdj 50K | 2% |
| Fdj 50K – Fdj 150K | 15% |
| Fdj 150K – Fdj 600K | 18% |
| Fdj 600K+ | 30% |
Corporate Tax
The standard corporate tax rate is 25%. Free zone companies are exempt from corporate tax. A minimum tax applies. Special incentives are available for priority sectors.
Standard Rate
25%
Capital Gains Tax
Capital gains are generally included in taxable income. A 10% rate may apply to property disposals.
Rate
10%
VAT / Sales Tax
VAT is levied at 10% on most goods and services. Essential goods are exempt. Free zone activities are VAT-exempt.
Standard Rate
10%
Cryptocurrency Tax
Djibouti does not have specific cryptocurrency legislation.
Tax Treaties
Djibouti has approximately 3 double taxation agreements.
Treaty Network
3
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Djibouti
See how much you could save by moving here from your current country.
+$12K
Tax in United States
$24K
24.4% effective
Tax in Djibouti
$13K
12.5% effective
You Save
48.7%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
