Mozambique Investment Income Guide 2026

Overview — Investment Income Taxation

Mozambique taxes investment income through withholding taxes at source for most passive income streams. The withholding tax is generally a final tax for resident individuals, meaning no further tax reporting is required. For companies, withheld tax is creditable against corporate tax. For non-residents, withholding tax rates may be reduced under applicable double tax treaties. The investment landscape includes government bonds, corporate bonds, listed shares through the Mozambique Stock Exchange (BVM), bank deposits, and investment funds, each with distinct tax treatments.

Dividends — 20% WHT (Final for Individuals)

Dividends paid by Mozambican-resident companies are subject to withholding tax at 20% for resident shareholders. This is a final tax for resident individuals, meaning the dividend income is not included in the individual's progressive IRPS assessment. For corporate shareholders, the 20% WHT is creditable against their IRPC liability. For non-residents, the dividend WHT rate is generally 20%, which may be reduced under applicable double tax treaties (e.g., 10% under the Portugal-Mozambique treaty, 15% under South Africa). Dividends from mining and oil & gas companies may be subject to additional taxes.

Interest Income — 20% WHT

Interest income is subject to a flat 20% withholding tax, which is a final tax for individuals. This applies to:

• Bank deposit interest — 20% final WHT for individuals
• Government bonds & Treasury bills — 20% WHT deducted at source
• Corporate bonds — 20% WHT on interest payments
• Foreign currency deposits — 20% WHT

For corporate taxpayers, the 20% WHT is creditable against IRPC. Interest paid to non-residents is subject to 20% WHT, which may be reduced under applicable double tax treaties.

Capital Gains — Securities Exempt for Individuals

As noted in the capital gains guide, gains from the disposal of securities (shares, bonds, and other financial instruments) are exempt from tax for individual investors. This exemption covers shares listed on the Mozambique Stock Exchange (BVM) as well as unlisted shares. For corporate investors, securities gains are included in ordinary taxable income and taxed at the applicable IRPC rate. Government securities are also generally exempt from capital gains tax for individuals.

Investment Funds

Income distributed by investment funds and collective investment schemes may have different tax treatments depending on the fund type. Income from money market funds and bond funds is generally subject to 20% WHT at distribution. Equity fund distributions may be partially exempt. The fund itself is generally not subject to tax on its investment income; tax is applied at the investor level upon distribution. The Bank of Mozambique regulates the investment fund industry.

FAQs

Do I need to report dividend income on my tax return?

If you are a resident individual, the 20% WHT on dividends is final, so no further reporting is needed. Non-residents and corporate shareholders should report and claim treaty relief where applicable.

Are foreign investment income and capital gains taxable in Mozambique?

Yes, tax residents are taxed on worldwide investment income. Foreign dividends, interest, and capital gains should be declared in the annual tax return. Foreign tax credits may be available under DTTs.

What is the WHT rate for non-residents?

The standard rate is 20% for both dividends and interest. Reduced treaty rates may apply under Mozambique's double tax treaties with Portugal (10% dividends), South Africa (15% dividends), and others.

Disclaimer

This guide provides general information about Mozambican investment income taxation 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.