Eritrea Tax Rates
Eritrea operates a progressive personal income tax system with rates up to 30%. The Inland Revenue Department administers the system, featuring a 30% corporate tax rate and 4% sales tax. Eritrea's economy is driven by mining, agriculture, and remittances. The country also imposes a 2% diaspora tax on citizens living abroad.
Top Income Tax Rate
30%
Corporate Tax Rate
30%
VAT / Sales Tax
4%
Capital Gains Tax
30%
Detailed Tax Information
Income Tax Brackets
Eritrea levies progressive income tax with rates from 2% to 30%. Employment income is taxed at source. Eritrean nationals living abroad are subject to a 2% rehabilitation and recovery tax on worldwide income.
| Income Range | Tax Rate |
|---|---|
| Nfk 0 – Nfk 3K | 2% |
| Nfk 3K – Nfk 6K | 6% |
| Nfk 6K – Nfk 12K | 12% |
| Nfk 12K – Nfk 24K | 18% |
| Nfk 24K – Nfk 48K | 22% |
| Nfk 48K+ | 30% |
Corporate Tax
The standard corporate tax rate is 30%. Mining companies are subject to additional royalties and taxes. Small businesses pay a presumptive tax based on turnover.
Standard Rate
30%
Capital Gains Tax
Capital gains are included in taxable income and taxed at the applicable rate.
Rate
30%
VAT / Sales Tax
Eritrea levies a sales tax of 4% on goods and 10% on services. There is no formal VAT system.
Standard Rate
4%
Cryptocurrency Tax
Eritrea does not have cryptocurrency legislation. Internet access is limited, making crypto usage minimal.
Tax Treaties
Eritrea has very limited treaty coverage.
Treaty Network
1
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Eritrea
See how much you could save by moving here from your current country.
+$363
Tax in United States
$24K
24.4% effective
Tax in Eritrea
$24K
24.0% effective
You Save
1.5%
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.
