Mozambique (MZ)
Portuguese-speaking East African country with 2,500 km of Indian Ocean coastline, extraordinary marine parks, growing LNG energy sector, and low cost of living for expats in Maputo.
2026 Annual Changes — Mozambique
Updated thresholds, benefits, and regulatory changes effective this year.
2026 key changes in Mozambique affecting expats: IRPS tax bands have been updated with slight adjustments to the lower bands effective January 2026. The minimum wage (salário mínimo) was revised upward for most sectors in January 2026, including domestic workers. INSS contribution rates remain at 4%+4%. The IVA (VAT) rate remains at 17% standard. The 5% foreign worker quota is enforced more actively following MITESS strengthened inspections. EDM electricity tariffs increased by approximately 8% in 2026. The MZN continued depreciating against the USD (approximately 63–65 MZN/USD in mid-2026). The Mozambique LNG project (TotalEnergies) operational updates continue to shape the oil & gas expat sector.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Income Tax (IRPS) IRPS bands updated for 2026. The bottom band (0% effectively) personal allowance of MT 31,500 remains. Band thresholds adjusted slightly. 32% top rate still applies above MT 1,512,000/year. | Top rate: 32% above MT 1,512,000/year annual income | 32% above MT 1,512,000/year (unchanged from 2025) | 2026-01-01 |
| Minimum Wage (Salário Mínimo) Minimum wages revised upward for all sectors in January 2026 by approximately 10–15% in MZN terms (inflation adjustment). Domestic workers minimum increased to approximately MT 6,500–7,000/month. | Non-financial services sector: MT 10,310/month (effective April 1, 2026). Domestic workers: sector-specific rate; verify current figure at MITESS (mitess.gov.mz). Agriculture and extractives: negotiated separately. All sectors received approximately 10–15% MZN increases from January/April 2026 to offset inflation. | Non-financial services approximately MT 8,500–9,000/month (2025) | 2026-01-01 |
| INSS Contributions Contribution rates unchanged. 3% employee + 4% employer = 7% total on gross salary. No earnings ceiling. | 3% employee + 4% employer = 7% total on gross salary. No earnings ceiling. | 3% + 4% (unchanged) | 2026-01-01 |
| IVA (VAT) Standard IVA rate unchanged at 17%. Reduced rate (5%) and exemptions unchanged. | 17% standard rate | 17% (unchanged) | No change in 2026 |
| Corporate Tax (IRPC) IRPC rate unchanged at 32%. Simplified ISPC (3% of turnover for businesses under MT 2,500,000 threshold) also unchanged. | 32% IRPC; 3% ISPC for small businesses | 32% IRPC (unchanged) | No change in 2026 |
| EDM Electricity Tariffs EDM (Electricidade de Moçambique) electricity tariffs increased by approximately 8% effective March 2026, reflecting fuel and infrastructure cost increases. | Residential tariff: approximately MT 7–12 per kWh (varies by consumption block) | Approximately MT 6–11 per kWh (2025) | 2026-03-01 |
| Foreign Worker Quota Enforcement MITESS has increased active enforcement of the 5% foreign worker quota under Law 23/2007. More frequent workplace inspections. Companies found exceeding the quota without exemption face fines of MT 100,000–500,000 per violation. | Foreign worker quota by company size: 5% (companies with 101+ employees); 8% (31–100 employees); 10% (11–30 employees); 15% (up to 10 employees). Senior technical and specialist roles may qualify for exemption. Stricter enforcement with proof required that no qualified Mozambican is available. | Same quota structure; enforcement tightened from 2026 | 2026-01-01 |
| MZN Exchange Rate (Reference) The Mozambican Metical (MZN) continued gradual depreciation against the USD through 2025 into 2026. | Approximately MT 63–65 per USD (mid-2026 reference) | Approximately MT 63 per USD (early 2026) | 2026 (ongoing market rate) |
| DIRE Residence Permit Fees DIRE updated fee schedule for residence permit applications effective 2026. | Initial application: MT 5,000–15,000 depending on permit type and duration. Annual renewal: MT 3,000–8,000. | MT 4,000–12,000 (2025) | 2026-01-01 |
| E-Fatura (ATM Electronic Invoicing) ATM (Autoridade Tributária de Moçambique) has expanded mandatory e-fatura (electronic invoicing) requirements to more business categories in 2026. Non-compliance fines increased. | Businesses with turnover above MT 1,000,000/year must use e-fatura. Fines for non-compliance: MT 50,000–200,000. | Previous threshold was MT 2,500,000 (aligned with IVA registration) | 2026-01-01 |
| Mozambique LNG (TotalEnergies) Status The Cabo Delgado LNG project remains suspended as of 2026 due to security situation in northern Mozambique. No confirmed restart date. This significantly affects oil & gas expat employment in northern provinces. | Project on hold. TotalEnergies Maputo office operational. ENI coral FLNG operational. | Project suspended since 2021 | Ongoing |
| Cabo Delgado Security Situation Security in Cabo Delgado Province remains fragile. SADC-SAMIM mission continues. Travel advisories from UK, US, EU, and Australia maintain "do not travel to" or "high risk" for Palma district and northern Cabo Delgado. | Insurgency ongoing. Travel to southern Cabo Delgado (Pemba) possible with precautions. Northern districts: high risk. | Same classification in 2025 | Ongoing |
January Checklist
Actions to take each January when new rates take effect.
- 1
Review IRPS tax bands for the new year — check if your salary band has changed and adjust withholding with your employer's HR/payroll
- 2
Confirm INSS employer contributions are current — request a contribution statement from INSS
- 3
Review your medical insurance policy renewal date and coverage — ensure evacuation coverage remains adequate
- 4
Check DIRE residence permit expiry date — allow 3 months before expiry to begin renewal process
- 5
Review lease agreement for rent increase clauses — many landlords adjust annually in January
- 6
Check malaria prophylaxis supply — ensure you have adequate supply for the coming months
- 7
Update emergency contact numbers in your phone — medical evacuation provider, employer security officer, Aga Khan Hospital emergency line
- 8
Review vehicle insurance renewal — Seguro RC must be current
- 9
Check Vinheta (vehicle road tax disc) expiry — renew if due
- 10
Review minimum wage update from January — adjust domestic worker salaries if required by law
- 11
Check travel advisory status for any planned travel within Mozambique (especially northern provinces)
- 12
Confirm home-country pension contributions are continuing if applicable
Where to Track Annual Changes
-
ATM (Autoridade Tributária de Moçambique) — at.gov.mz — for tax rate changes, IRPS bands, IVA, IRPC
-
INSS (Instituto Nacional de Segurança Social) — inss.gov.mz — for contribution rates and benefit changes
-
MITESS (Ministry of Labour) — mitess.gov.mz — for minimum wage, work permit quotas, labour law updates
-
DIRE (Direcção de Imigração) — for visa, permit, and immigration fee updates
-
Banco de Moçambique — bm.moz.com — for exchange rate reference and banking regulations
-
EDM (Electricidade de Moçambique) — edm.co.mz — for electricity tariff updates
-
Expats in Mozambique Facebook group — community alerts for practical changes affecting expats
-
FCDO (UK Foreign Office), US State Department, DFAT (Australia) — current travel advisories for Mozambique
-
TotalEnergies Mozambique and ENI Mozambique corporate pages — LNG project status updates
Sources for this annual changes data: ATM official publications, INSS bulletins, MITESS wage orders (portaria de salário mínimo), Banco de Moçambique exchange rate data, DIRE fee schedules, and the Expats in Mozambique community network as of mid-2026. Always verify current figures directly with the relevant authority before making financial or legal decisions. Currency exchange rates are indicative — check Banco de Moçambique for official daily rates.
Annual Changes
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