Incentives and Protection for Foreign Investment in Mozambique

Incentives and Protection for Foreign Investment in Mozambique

Investing in an emerging market like Mozambique requires a clear understanding of the Investment Law (Law No. 3/93). This law establishes the State's commitment to the protection of private property and guarantees the free transfer of profits and dividends abroad.

For projects approved by APIEX (Investment and Export Promotion Agency), doors open to tax benefits, such as exemptions from customs duties on the import of capital goods and reductions in Corporate Income Tax (IRPC).

Critical Challenges Requiring Advisory:

  • Foreign Capital Registration: Mandatory procedure before the Bank of Mozambique to ensure the future right to remit profits.
  • Land Management (DUAT): Land is State property; we ensure that the Right of Use and Benefit is obtained safely and quickly.
  • Labor Quotas: Navigating the rules for hiring expatriates versus training national staff.
  • Fiscal Stabilization: Negotiating clauses that protect the project from sudden changes in the tax burden.

At SD&MP, we act as your local guide. From drafting the investment proposal to institutional mediation, we ensure the foreign investor feels at home and with their capital fully protected.

Planning to invest in Mozambique? Talk to our specialized consultants in Foreign Investment.

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