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INVESTMENT
The Eritrean investment centre promotes investment and assists investors to acquire the necessary legality for their investment activities. Also, the business licensing office ensures a speedy licensing process.
The investment code provides unrestricted access to all spheres of economic activity for investors. Total foreign ownership is permitted in all areas of activity. There is a 2 per cent nominal duty on all capital goods, semi-processed material, industrial parts and raw materials. There is an exemption from export duties and sales tax for exports.
Income taxes range from 25 per cent -35 per cent on corporate profit; 2per cent-20 per cent on commercial agricultural profit and 1 per to 48 per cent on rent income. Foreign exchange may be remitted out of Eritrea for net profits and dividends accrued from investment capital, debt service payments on foreign loans and salaries of expatriate staff as well as sale or transfer of shares.
There is freedom to recruit expatriate staff for companies. Foreign investors have usufructuary rights to land for various purposes although ownership of land is the exclusive right of government. Foreigners may apply for land without citizenship for investment purposes. Eritrea is a member of the IMF, the World Bank and the Hague convention for the Pacific settlement of international disputes and a member of the multinational guarantee agency.
Principles guiding the process of privatisation in Eritrea
Methods of privatisation
Eritrea Investment Centre , PO BOX 921,Asmara,Eritrea.Tel.:291-1-124923 |
