Africa · MWK
Malawi
Reviewed 2026-06-21
Top income tax
40%
Self-employed SS
Yes
VAT
17.5%
Capital gains
30%
Exit tax
No
Nomad visa
No
53
/ 100
Tax efficiency41
Ease to enter42
Ease to exit77
Cost of living92
Internet0
English100
Malawi taxes individuals on a source basis, so foreign income earned by residents is generally outside the net, while local earnings face steep progressive PAYE rates that now top out at 40 percent. Self-employed people must contribute 15 percent of earnings to the national pension scheme, and VAT rose to 17.5 percent in January 2026. The country is very low cost but has weak infrastructure, slow broadband, and no dedicated digital nomad or entrepreneur visa, so it suits few location-independent founders.
Personal income tax
Income tax structureProgressive
Top income tax rate40%
Entry income tax rate30%
Top rate threshold$69,000
Taxation basisTerritorial
Local/state income taxNo
Social security
Self-employed social securityYes
Employee SS rate5%
Employer SS rate10%
Indirect & other taxes
VAT standard rate17.5%
Capital gains rate30%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxYes
Inheritance top rate11%
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate30%
WHT on dividends10%
CFC rulesNo
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaNo
Entrepreneur visaNo
Ease of setup2 / 5
Lifestyle
Cost of living index30
Internet speed12 Mbps
English proficiencyHigh
Civil liberties63
Sources
- Malawi Revenue Authority — New Tax Measures, 2025/26 Mid-Year Budget Review (Public Notice)
- Malawi Revenue Authority — Withholding Tax (rates and 14th Schedule)
- BDO — Taxation of expatriates in Malawi (source basis, 183-day residency)
- ISSA — Country profile: Malawi (national pension scheme contributions)
- EF EPI — Malawi English proficiency
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.