East & Southern Africa
Eritrea: tax at a glance
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
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.