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Ethiopia
Africa
Lucky Nomads World Index
52.07 / 100
Global rank
#209
Corporate tax
30%
Personal tax
35%
Lucky Nomads Proprietary Indices
22 scoring dimensions scored independently using a deterministic methodology built on primary sources and structured analytical inference.
- SafetyShield Index5.3 / 10
- Affordability Index8.3 / 10
- Entry Ease Index4.1 / 10
- Tax Freedom Index5.0 / 10
- WiFi Index4.6 / 10
- Admin Ease Index3.9 / 10
- Healthcare Index4.5 / 10
- City Comfort Index4.0 / 10
- WeatherComfort Index7.3 / 10
- Banking Index3.7 / 10
- GeoStability Index3.5 / 10
- Justice & Order Index3.4 / 10
- Quality of Life Index5.3 / 10
- Open Society Index3.2 / 10
- Flight Index5.0 / 10
- Environmental Quality Index4.8 / 10
- English Index3.6 / 10
- Wealth Protection Index6.6 / 10
- AI Access Index4.5 / 10
- Economic Openness Index4.2 / 10
- Market Depth Index6.3 / 10
- ClimateShield Index8.0 / 10
Country snapshot
- Capital
- Addis Ababa
- Population (approx.)
- 125,000,000
- Area (km²)
- 1,104,300 km²
- Currency code (ISO 4217)
- ETB
- Currency name
- Ethiopian birr
- Main airport IATA code
- ADD
- Airport name
- Addis Ababa Bole International Airport
General facts
- Minimum monthly cost
- From $776/month
- Main languages
- Amharic
- Jurisdiction type
- Country
- Region
- Africa
- Web TLD
- .et
- Phone calling code
- +251
Web TLD and phone codes are general references and can differ for territories or special numbering plans.
Tax system
- Marginal CIT (corporate income tax)
- 30%Very highWorldwide
- Marginal PIT (personal income tax)
- 35%HighWorldwide
Corporate taxation basis: Worldwide. The country generally taxes worldwide income of resident companies.
Resident companies are taxed on worldwide income with a foreign tax credit mechanism. Foreign branches are not exempted by election. Pillar Two is not yet in domestic law as of May 2026 but the Ministry of Finance has signalled alignment in the 2026 to 2028 reform roadmap.
Standard 30 percent corporate income tax rate under the Income Tax Proclamation 979/2016 as amended by Proclamation 1395/2025. Concessionary rates apply under Regulation 586/2026 for qualifying investors: 5 percent for SEZ developers and recognised technology startups (10 years), 15 percent for priority sectors (up to 10 years), and 25 percent for companies listing on the Ethiopian Securities Exchange (3 years from IPO).
Personal income tax basis. Worldwide. Resident individuals are generally taxable on their worldwide income, subject to relief under applicable tax treaties.
Worldwide taxation for residents (habitual abode in Ethiopia or 183 days of physical presence in any 12-month period). The SEZ foreign employee PIT exemption is the only structural relief and is limited to employment income from a qualifying export-oriented SEZ enterprise, with a 5-year cap. Foreign-source non-employment income (dividends, rental, capital gains) remains taxable for residents.
Progressive monthly schedule from 0 percent on the first up to 35 percent on monthly income above under the Income Tax Proclamation 979/2016 as amended by 1395/2025. Foreign nationals employed by exporting SEZ enterprises are exempt from PIT on employment income for 5 consecutive years under the Special Economic Zone Proclamation 1322/2024.
Tax percentages here are editorial reference figures for comparison, not individualized tax advice.
Special tax regimes
For companies
Investment Incentives Regulation No. 586/2026
AvailableEthiopia's performance-based corporate incentives regime under Council of Ministers Regulation No.
Special Economic Zone Regime (Proclamation 1322/2024)
AvailableEthiopia's Special Economic Zone regime under Proclamation No.
Startup Tax Incentive Regime (Startup Proclamation 1396/2025)
AvailableEthiopia's Startup Proclamation No.
For individuals
SEZ Foreign Employee Income Tax Exemption (Proclamation 1322/2024)
AvailableEthiopia exempts foreign nationals employed by SEZ enterprises whose primary activity is export from personal income tax on employment income for 5…
You either qualify for Ethiopia's special tax regimes, or you don't. GeoCompass determines your eligibility, highlights the applicable conditions, and helps estimate your potential tax exposure.
Check my eligibilityVisa and mobility
Your access
Visa need and length of stay for Ethiopia. Saved on your device.
Overview
- Citizenship by investment
Not currently available
- Residence by investment
Available
- Remote work visa (digital nomad visa)
Not currently available
Programmes
Ethiopia lists several residency and mobility routes across residence by investment, work (employer sponsored), and family and dependant routes. Lucky Nomads tracks these programmes as editorial reference points. Thresholds, documents, and personal eligibility are evaluated in GeoCompass against your exact profile.
5 programmes listed · 5 are marked available in our editorial review
Residence by investment
2 programmesCapital, property, fund, or declared investment routes that can lead to longer-term residence.
- Available
Foreign Homeowner Residence Permit (Proclamation 1388/2025)
- Available
Investor Residence Permit (Investment Proclamation 1180/2020)
Work (employer sponsored)
1 programmeEmployer-linked permits and skilled employment passes for hired professionals.
- Available
Ethiopia Work Permit and Residence Permit
Family and dependant routes
2 programmesSpouse, dependant, and family reunion style permits.
- Available
Family Member Residence Permit
- Available
Foreign National of Ethiopian Origin Identification Card (Yellow Card)
Not all residency routes are accessible. Some require minimum income, investment thresholds, local substance, or strict eligibility conditions. GeoCompass evaluates which options you can actually secure in Ethiopia.
Evaluate my residency optionsVisa and programme labels reflect editorial research, not individualized legal advice. Thresholds, documents, and personal eligibility are evaluated in GeoCompass. Always confirm rules with official government sources before you plan a move.
Dimensions breakdown
Strongest dimensions
- Affordability Index8.3 / 10Very affordable cost of living
- ClimateShield Index8.0 / 10Very strong climateshield index
- WeatherComfort Index7.3 / 10Comfortable climate year-round
Weakest dimensions
- Open Society Index3.2 / 10
- Justice & Order Index3.4 / 10
Published ranks by index
One row per leaderboard we publish (the composite index plus each proprietary dimension). A rank appears only when this country is currently in the published top 10 for that list. Open a row to see the full ranking. Hover an index name for the same short definition as elsewhere on the site.
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Founder, Lucky Nomads · Wealth manager
Researched from official sources, leading global indices and Lucky Nomads' own scoring.
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