Mozambique Capital Gains Tax Guide 2026

Overview — CGT in Mozambique

Capital gains in Mozambique are treated as ordinary income under the IRPS (individuals) or IRPC (companies) codes. A chargeable gain arises when a person disposes of an asset for consideration exceeding the allowable cost. Disposal includes sale, exchange, and certain deemed disposals. For individuals, gains on property are added to other income and taxed at progressive IRPS rates up to 32%. For companies, gains are included in taxable profits and taxed at the applicable IRPC rate (32% standard, or reduced rates). The gain is calculated as the difference between the disposal proceeds and the acquisition cost (adjusted for inflation for certain assets).

Property Gains — 32% Maximum Rate

Gains from the disposal of real property (land and buildings) are subject to tax at the taxpayer's marginal rate. For individuals, this means property gains are added to other annual income and taxed at progressive IRPS rates up to 32%. For companies, property gains are included in ordinary taxable income and taxed at the applicable IRPC rate. The cost base includes the original purchase price, acquisition costs (SISA, stamp duty, notary fees), and capital improvements. Inflation adjustment may be applied to the cost base for assets held for more than 2 years. A withholding tax of 15% on the gross sale price is applied at the point of transfer (retenção na fonte), which is creditable against the final tax liability.

Securities Gains — Exempt for Individuals

Capital gains from the disposal of securities (shares, bonds, and other financial instruments) are generally exempt from income tax for individual investors in Mozambique. This exemption applies to gains from the sale of shares listed on the Mozambique Stock Exchange (BVM — Bolsa de Valores de Moçambique) as well as unlisted shares. For corporate investors, securities gains are included in ordinary taxable income and taxed at the applicable IRPC rate. The exemption for individuals was designed to encourage investment in the capital markets and improve financial inclusion.

Principal Residence Relief

Gain from the disposal of an individual's principal private residence may be exempt from tax if the proceeds are reinvested in another principal residence within 12 months (rollover relief). The relief applies to the first MZN 10 million of gain; any excess gain is taxable. To qualify, the property must have been occupied as the main residence for at least 2 years before disposal. Partial relief is available where only part of the proceeds are reinvested. Additional residences (second homes, investment properties) are fully chargeable.

FAQs

How do I calculate my chargeable gain on property?

The chargeable gain is the difference between the disposal proceeds (net of selling costs) and the acquisition cost (plus enhancement expenditure and buying costs, adjusted for inflation). Example: Buy land for MZN 3,000,000, sell for MZN 5,000,000, costs of MZN 200,000. Gain = 5,000,000 − 3,000,000 − 200,000 = MZN 1,800,000, taxed at your marginal rate up to 32%.

Is there a withholding tax on property sales?

Yes, the purchaser must withhold 15% of the gross sale price and remit it to ATM as an advance payment of the vendor's final CGT liability. The vendor claims credit for this withholding in their annual tax return.

What assets are exempt from CGT?

Principal residence (subject to reinvestment rule), securities for individuals, personal use assets (vehicles, household goods), and assets transferred on death.

Disclaimer

This guide provides general information about Mozambican capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Mozambican tax advisor or the Autoridade Tributária de Moçambique for advice specific to your situation. InvestmentKit does not provide tax advice.