Investment Incentives in Mozambique

Investment Incentives in Mozambique

The Investment Law of Mozambique grants certain tax and customs benefits depending on the amount, location and sector of investment activity. The incentive schemes applicable in Mozambique are as follow:

1. Generic Fiscal and Customs Benefits
Investments carried out under the Investment Law are exempt from payment of customs duties and VAT on capital goods classified in Class K of the Customs Tariff and related accompanying parts and accessories.

2. Tax credit per investment
Investments carried out in the City of Maputo benefit, for a period of five tax years, from a deduction (not to exceed the tax payable in respect of the investment project activity) from Corporate Income Tax (IRPC) that is equal to 5% of the total investment actually realized. In the case of investment projects carried out in the other provinces, the percentage is 10%.

3. Benefits for Industrial Free Zones
The Industrial Free Zone Regime is applicable to two components of Industrial Free Zones, namely;

i.    Development and exploration of Industrial Free Zone infrastructures (Industrial Free Zone Operator)
ii.    Exploration of industrial activities for export or provision of services within the Industrial Free Zone (Industrial Free Zone Company)


  • The government authorizes for the Industrial Free Zones all activities of industrial nature as long as at least 70% of their production is for export.
  • Operators of Industrial Free Zones are exempt from payment of customs duties on the importation of construction materials, machinery, equipment, accompanying spare and accessory parts and other goods used in the carrying out of the licensed Industrial Free Zones activity.
  • Industrial Free Zones enterprises benefit from an exemption from customs duties on the import of goods and merchandise to be used in the implementation of projects and exploration of activities which have been authorized under the terms of the Industrial Free Zones Regulations.

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