Tax Residency in Eritrea: Residence Tests, the 2% Diaspora Tax and Practical Steps

Last reviewed: October 2026

Eritrea tax residency at a glance

Who is a tax resident in Eritrea?

Eritrea's income tax law defines residence mainly through two connecting factors:

1. Domicile. An individual whose permanent home and centre of life are in Eritrea, as defined by Eritrean civil law, is treated as resident.
2. Physical presence. An individual present in Eritrea for more than 183 days in a year is generally treated as resident for that year.

For companies, residence typically follows incorporation in Eritrea or effective management there. Foreign companies and individuals who are not resident are taxed only on Eritrean-source income, such as salary for work performed in Eritrea, local business profits or rent from Eritrean property.

Two cautions apply:

• Primary texts are hard to access. Eritrea's tax proclamations are not consistently published in an official online database, and the major Big-4 global tax guides do not include an Eritrea chapter. Any figure you rely on should be confirmed in writing by the Inland Revenue Department or a local lawyer.
• Residence is not the only basis of tax for Eritreans. The diaspora tax applies to nationals abroad whatever their residence status.

What is Eritrea's 2% diaspora tax?

Eritrea levies a 2% tax on the income of Eritrean citizens living abroad, usually called the Diaspora Tax or Recovery and Rehabilitation Tax. It was introduced in the 1990s. In practice, payment is often requested by Eritrean embassies and consulates before they provide consular services such as passports, document legalisation or permits relating to property in Eritrea.

Key points:

• It applies by nationality, not residence. An Eritrean national who has lived in Germany for 20 years and is fully tax resident there can still be asked to pay it.
• It is not a tax under the laws of the host country, so it is generally not creditable against the host country's income tax.
• In Resolution 2023 (2011), the UN Security Council condemned the use of the tax for destabilising purposes and decided that Eritrea must cease collecting it through extortion, threats of violence, fraud and other illicit means. It also called on States to take appropriate measures against individuals acting on Eritrea's behalf in breach of this.
• Resolution 2444 (2018) lifted the UN sanctions regime on Eritrea (arms embargo, travel ban, asset freeze and targeted sanctions). It does not mention the diaspora tax. Collection remains a sensitive issue in several host countries.

Example. An Eritrean-born software engineer resident in the Netherlands earns EUR 80,000. Dutch tax is due under Dutch residence rules. If he applies for a service at an Eritrean consulate, he may be asked to show payment of 2% of his income (EUR 1,600) for the relevant years. That payment does not reduce his Dutch tax.

How do you become tax resident in Eritrea as a foreigner?

Eritrea is not a destination designed for incoming professionals: there is no digital nomad visa, tourist visas are short, and foreign residence is generally tied to employment, investment or family links. The usual sequence is:

1. Obtain a visa and residence permit from the Department of Immigration and Nationality, normally sponsored by an employer, a licensed business or an international organisation. Requirements and processing times vary and should be checked with the nearest Eritrean embassy.
2. Register your address with the local administration (kebabi/sub-zone) where you live, which is required for most administrative steps.
3. Register with the Inland Revenue Department to obtain a taxpayer identification number if you earn local income or run a business.
4. Open a local bank account with a state-owned bank if you will receive local salary or pay local expenses. Foreign-exchange controls are strict, so plan how funds will be brought in and out.
5. File returns or have tax withheld. Employees are usually taxed through employer withholding; business owners file annual returns. Check filing deadlines and rates with the authority.
6. Keep evidence of your days in the country, your home and your income sources, since you may need to prove residence or non-residence later.

What does this mean for location-independent professionals?

For foreign remote workers. Spending more than 183 days in Eritrea while working for foreign clients could expose you to Eritrean residence and taxation on income, with no treaty to settle a dual-residence conflict. Infrastructure is a further constraint: internet access is limited and expensive, and international payment and banking channels are restricted. Eritrea is rarely a practical base for remote work.

For Eritrean nationals abroad. Your income tax is decided by your country of residence. Make sure you are clearly resident there (home, registered address, day counts) and keep records of any diaspora tax paid. The absence of treaties means Eritrea cannot be used as a tie-breaker jurisdiction, and the 2% levy should be budgeted as a non-creditable cost.

For companies. A foreign company with staff or a fixed place of business in Eritrea may create a taxable presence there. Because there is no treaty, the domestic definition of a permanent establishment applies without the protections of an OECD-style treaty. See our overview of corporate income taxes in Eritrea.

Double taxation without a treaty. Without a treaty, relief depends on each country's domestic rules. Many residence countries give a unilateral foreign tax credit for income tax paid abroad on foreign-source income, but not for nationality-based levies such as the diaspora tax.

For broader context, read our tax landscape overview of Eritrea, our guide to personal tax deductions and benefits in Eritrea and, for the neighbouring country, the practical guide to obtaining tax residency in Ethiopia.

How do you stop being tax resident in Eritrea?

1. Leave and stay out for more than 183 days in a year, and give up your Eritrean home.
2. Settle outstanding taxes and obtain any clearance the authorities require before departure, particularly for business owners.
3. Establish residence elsewhere with clear evidence (lease, registration, local tax number), since no treaty tie-breaker will settle the question.
4. Note that Eritrean citizens leaving the country need an exit visa, and that the 2% diaspora tax will then apply to your foreign income for consular purposes.

Frequently asked questions

How do you become a tax resident of Eritrea?

Residence in Eritrea is generally established by having your domicile there or spending more than 183 days in the country in a year. Foreigners first need a visa and residence permit, usually sponsored by an employer or business, then register their address and register with the Inland Revenue Department if they earn local income. Because official texts are hard to access, confirm the rules with the authority or a local lawyer.

Do Eritreans living abroad have to pay tax to Eritrea?

Eritrea asks its nationals living abroad to pay a 2% Recovery and Rehabilitation Tax on their income, often as a condition for consular services. This applies by nationality, not residence. Your main income tax is still due in your country of residence, which generally does not give a credit for the 2% levy. UN Resolution 2023 (2011) condemned collecting it by coercion.

Does Eritrea have double tax treaties?

We could not identify any comprehensive double tax treaty in force for Eritrea. The UK's official list of tax treaties does not include Eritrea, contrary to some online claims. Without a treaty, there is no tie-breaker rule for dual residence and no reduced withholding rates, so relief depends on unilateral foreign tax credits in your residence country.

Can I work remotely from Eritrea as a digital nomad?

Eritrea has no digital nomad visa, and visitor visas are short and not intended for working stays. Internet access is limited and international banking and currency transfers are restricted. Staying more than 183 days could also make you tax resident with no treaty protection. In practice, Eritrea is not a suitable base for location-independent professionals.

Related guides

• Corporate income tax in Eritrea
• Tax system overview: Eritrea
• Personal tax deductions in Eritrea
• How to obtain tax residency in Ethiopia

Sources

• UN Security Council Resolution 2023 (2011) – press release SC/10471
• UN Security Council Resolution 2444 (2018) lifting sanctions on Eritrea – press release SC/13576
• GOV.UK – Tax treaties (list of UK double taxation agreements)
• EY Worldwide Personal Tax and Immigration Guide 2026 (Eritrea not covered)

This article is general information based on the sources available as of October 2026, not personalised tax or legal advice. Eritrean tax texts are difficult to access; confirm every rule locally.

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