Mozambique - Taxation, Accommodation Cost, Cost of living?

Hi Sarada

For individual tax payers, Mozambique works on a pay-as-you-earn system where your  monthly income is taxed between 10 and 32 percent before you receive your paycheck in your account. A monthly salary of 7000 USD will be taxed 25 percent. Company tax is a standard 32 percent. There is a downloadable PDF with more details here: http://www.kpmg.com/Africa/en/Documents/Mozambique%20Fiscal%20Guide%202011.pdf

The cost of living in Mozambique is resonably low but it depends on what you consider to be essential items. Many items you might be used to having at home will be imported from South Africa or further away and will be more expensive. Also, don't underestimate the costs of things like private health insurance - if you are used to free healthcare in your own country this cost could come as a shock.

Accommodation depends on where you're going. You will be able to find furnished accommodation in the capital, Maputo, but may not in rural areas. Try contacting a reputable agency like Remax (http://www.remax.co.za/Property-in-Maputo-Mozambique/) and ask them to send a list of properties available at the moment so you can get a sense of your options.

Hi Anon

It depends. I think you should contact the HR department of the company  that is making you the offer and ask, by email or phone. They will be able to explain to you exactly how the package works if you have any questions.

I suspect you will probably have tax deducted from your full package (the full cost to company) each month, although usually the benefits are tax deductable i.e. you can claim back the money for education/accommodation/petrol for the company car etc at the end of the tax year when you file your tax return. But it really does depend on the package so I recommend contacting the company to clarify the particulars of your contract. Hope that helps.

Thanks for the above information. I am also considering to relocate to Mozambique - Maputo. The company is offering me a company car, accommodation and education for my kids. Do you know if I am to pay taxes on this. And also does the company pay taxes on such a benefit. As the offer is a cost to company and I cannot work out all the fees and deductions on the offer documents. Thank you

Hi Gaby, Thank you very much for your response.I would really appreciate if you could let me know the below details/ 1. Can I calim for my rent (100%) in my tax returns if the company is not paying for my accomodation? 3. What would be the range of aprtments rents in maputo?

I am thinking of relocating to Maputo but have no job offers. I have a social work bachelors degree and currently doing my MBA how easy is it to get a job? Thank you for the above information.