Published on and written by Cyril Jarnias
Moving to, working, or investing in Burundi as an expatriate means entering a specific tax universe, quite different from European systems but structured and increasingly aligned with East African Community standards. Two major areas directly concern foreigners living or investing there: income tax and the property tax (or land tax) related to owning real estate.
It is essential to master local regulations to avoid double taxation, secure investments, and obtain necessary administrative documents for daily life, such as permits, certificates, or notarized deeds.
Understanding the General Framework: Who is a Tax Resident in Burundi?
In Burundi, the entire tax system is managed by the Burundi Revenue Office (OBR). The key distinction, as in most countries, is between resident and non-resident. This determines how an expatriate will be taxed.
An individual is subject to Burundian income tax if they meet at least one of these criteria: having their tax domicile in Burundi, carrying out their main professional activity there, or having invested their capital there. Therefore, an expatriate living and working primarily in Burundi is generally considered a tax resident.
A non-resident, on the contrary, is a person who meets none of these criteria but may still have Burundian-source income, such as rental income or salaries paid for an activity performed locally for a limited period.
The distinction between tax resident and non-resident in Burundi has a major consequence: a resident is taxed on their worldwide income, while a non-resident is taxed only on their Burundian-source income. For an expatriate, this determines, for example, whether a salary paid by a foreign employer or dividends received abroad must be declared and taxed locally.
Burundi has also signed double taxation avoidance agreements with several states, particularly within the East African Community (EAC). These treaties largely follow the logic of the OECD Model Tax Convention: they address cases of possible dual residence, resolve conflicts based on successive criteria (permanent home, center of vital interests, habitual abode, nationality), and establish tax credit mechanisms to prevent the same income from being taxed twice.
Personal Income Tax: What Expatriates Need to Know
The core of the system for individuals is Law No. 1/02 of January 24, 2013, on income taxes, subsequently supplemented by other texts. This reform modernized the system, eased some burdens, and introduced new taxable categories.
Simple Progressivity, with Three Rates
For individuals, Burundi applies a progressive tax bracket system on main incomes (salaries, business income, rental income). This scale is intentionally compact, with only three rates: 0%, 20%, and 30%.
Here is the official structure of income tax for residents, expressed in annual income in Burundian francs (BIF):
| Annual Income Bracket (BIF) | Tax Rate |
|---|---|
| 0 to 1,800,000 | 0% |
| 1,800,001 to 3,600,000 | 20% |
| 3,600,001 and above | 30% |
Taxable income is rounded to the nearest thousand BIF. This scale also applies, for certain types of income, to non-residents, which is a particularity of the Burundian system: a foreigner who, for example, has a local job for a defined period may be taxed under this scale for their “first schedule” income (salaries, professional profits, rental income).
In practice, an expatriate employee earning a modest income may therefore be fully or largely exempt, while a senior executive will quickly fall into the 30% bracket. Originally, a strong political gesture was made: a large portion of low-paid civil servants was placed back in the 0% bracket thanks to this scale, while high incomes (including political figures) are now fully subject to tax.
Resident or Non-Resident: Which Incomes Are Considered?
For an expatriate, the first step must be to distinguish the origin of their income and their status as a resident or non-resident.
A Burundian resident, such as a foreigner settled permanently in the country, is taxable on their worldwide income. This includes, for example, a salary, dividends, or rental income received abroad, which must be included in their taxable base. This rule applies subject to the provisions of any applicable tax treaty. Income is categorized into two groups: employment income, business income, and rental income on one hand, and capital income and capital gains on the other.
For a non-resident, the logic is more restrictive: only salaries of Burundian source and profits attributable to a permanent establishment located in Burundi, as well as certain property income, are included in the calculation of Burundian tax. A European architect who comes to work occasionally on a Burundian construction site or a foreign consultant on a mission in Burundi thus becomes locally taxable on the remuneration for these services.
The definition of Burundian-source income is quite broad. It includes not only income from real estate located in Burundi and associated rights but also remuneration for services rendered to Burundian residents or permanent establishments, including when these services are provided remotely. Construction or development work carried out on the territory is expressly considered as services performed in Burundi.
Central Role of Withholding Tax
The Burundian system relies heavily on withholding taxes, particularly for salaries (via the PAYE mechanism, Pay As You Earn) and for certain payments made to non-residents.
For employees, the employer calculates income tax monthly by applying the progressive scale to the taxable salary and remits the amount to the OBR. Mandatory social security contributions (INSS) are deductible from gross salary to determine the taxable base. Furthermore, the employer must file an annual summary declaration per employee, detailing all compensation paid and amounts withheld.
From the expatriate employee’s perspective, this system has the advantage of simplicity: barring significant additional income (annuities, dividends, independent activities), the tax related to local employment is withheld at source and, for many employees, the annual declaration is not even mandatory when all income is already subject to a final withholding.
For non-residents, withholding taxes play an even more important role. Payments of rent or service fees to non-resident individuals or entities are generally subject to a 15% withholding tax. In the case of rent, it is the tenant who acts as a collector, withholds the tax, and remits it. For certain types of transactions, such as the sale of real estate to a non-resident, a specific 5% withholding on the transfer price is also provided for.
Capital, Capital Gains, and Financial Income
Income from movable capital and capital gains realized by individuals are treated separately from salaries and professional profits. They are subject to a single flat rate of 15%.
Rate of the final withholding tax at source applicable to dividends, interest, and capital gains for individuals
Certain exemptions exist. Dividends received from a resident company may, for example, be fully exempt if a final 15% withholding has already been applied and the legal framework is respected.
Declarations, Deadlines, and Documentary Obligations
For an expatriate who is self-employed or runs a local structure, the declaration process is more demanding. Individuals earning business income must file an annual income declaration, in principle before the end of the third month following the close of the financial year. Taxpayers whose turnover does not exceed 100 million BIF benefit from a quarterly schedule for declaration and payment, easing cash flow constraints.
The rules also stipulate that beyond a certain turnover threshold (100 million BIF), the declaration must be accompanied by detailed supporting documents, in accordance with tax procedure rules. For example, financial statements, net profit calculation tables, and documents proving taxes paid abroad when an international tax credit is claimed may be required.
Regarding deadlines, Burundian taxation follows a fairly standard scheme: individuals must file their annual declaration by March 31 of the following year for income tax. Those who have received only income subject to a final withholding tax (salaries, interest, dividends) are exempt from filing but retain the right to do so if they wish to obtain a possible refund.
Minimum Taxation and Simplified Regimes
Burundi has implemented a “minimum tax” device that affects both companies and self-employed workers. The idea is to avoid situations where a significant activity escapes tax due to declared profits being too low or aggressive tax optimization structures.
Any individual or legal entity conducting an activity in Burundi is subject to a minimum tax of 1% of turnover, regardless of the accounting result, except notably for beneficiaries of the investment code or free zone regimes. This minimum applies when taxable profit is less than one-thirtieth of turnover.
This mechanism is complemented by minimum amounts, based on activity volume:
| Annual Turnover (BIF) | Annual Minimum Tax |
|---|---|
| ≤ 50,000,000 | 100,000 BIF |
| > 50,000,000 (ordinary taxpayer) | 300,000 BIF |
| Large taxpayer | 600,000 BIF |
Below certain thresholds, a flat-rate regime applies. For example, for an individual engaged in an activity other than merchandise sales with an annual turnover of less than 3,000,000 BIF, an annual fixed contribution of approximately 30,000 BIF is provided. Another flat tax device concerns very small enterprises with receipts up to 24,000,000 BIF, with taxation at a flat rate disconnected from actual profit.
For an expatriate starting a micro-enterprise, these regimes simplify tax management but impose limits: no detailed deduction of expenses is possible, and the taxable base is calculated on a flat-rate basis (e.g., 15% of turnover for goods sales and 30% for service provision for certain small taxpayers).
Expatriate Taxation and International Treaties
An expatriate rarely lives in a single tax environment: their country of origin often retains a right to tax their income, and complex double taxation rules can arise. Burundi, aware of this issue, has signed several double taxation avoidance agreements, particularly with East African Community states (Kenya, Rwanda, Uganda, Tanzania).
Tax treaties organize the allocation of taxing rights. Rental income from a property located in Burundi is taxable in Burundi, regardless of the owner’s residence. For dividends, interest, or royalties, Burundi generally applies a limited withholding tax at source. The beneficiary’s country of residence then grants a tax credit to avoid double taxation, corresponding in whole or in part to the tax already paid in Burundi.
The general logic is that of the “source / residence” principle inspired by the OECD Model: real estate income is taxed where the property is located, salaries are generally taxed where the work is physically performed, and private pensions in the state of residence. The EAC treaties, as well as treaties under negotiation or announced with other states (e.g., with Turkey, and an advanced project with Morocco), fit into this framework.
To avoid double taxation, expatriates must be aware of tax treaties between countries. It is often necessary to provide tax residency certificates or withholding tax certificates to benefit from a tax credit in one or the other country.
Property Ownership and Foreigner Status: Rights and Limits
Owning land or property in Burundi as an expatriate means entering a universe regulated by the Land Code. This code establishes a principle of non-discrimination: foreigners and Burundians enjoy, in principle, the same rights and protections provided reciprocity is guaranteed. Concretely, a foreigner can acquire land rights, but this possibility is subject to several conditions.
The national territory is divided into rural and urban zones. Real rights include full ownership, emphyteusis, usufruct, use, habitation, servitudes, and mortgage. For foreigners, access to full ownership is limited to specific projects: industrial, agro-industrial, commercial, social, cultural, scientific, or residential. Furthermore, if acquired land is not developed within a period of five years, the property transfer may be annulled.
International treaties, when they are more favorable to foreigners, take precedence over domestic law. Conversely, in the absence of a treaty, a principle of reciprocity applies against nationals of countries that would impose stricter restrictions on Burundians.
In practice, these rules mean that a foreign investor can, under conditions, buy a house, apartment, or land for residential or professional use, obtain a land title, and dispose of the property (rent, sell, mortgage). But they must accept closer scrutiny from land authorities regarding the purpose and actual use of the property.
Property Tax: A Structured and Increasingly Enforced Local Taxation
Property tax in Burundi has several facets. On one hand, an annual tax on built-up properties and land constituting their immediate dependencies in urban and semi-urban zones; on the other, the taxation of income derived from renting these properties. For an expatriate owner, the first falls under municipal taxation, the second under income tax.
Who Pays Property Tax and on What Basis?
The 2016 Municipal Law organizes an annual real tax on built-up properties and their dependencies. The liable party is not necessarily the simple civil owner: the holder of a right of ownership, possession, emphyteusis, superficies, or usufruct is concerned. In other words, a foreigner holding a long-term emphyteusis right on developed land may be liable for the tax as if they were the owner.
This is the maximum legal rate, in BIF per square meter, for the municipal property tax.
To illustrate the logic of old rates</strong which remain indicative of the system's spirit, a previous text provided, for example, amounts per square meter based on the type of construction:
| Type of Construction | Annual Tax (old indicative base) |
|---|---|
| Solid construction | 36 BIF/m² |
| Semi-solid construction | 24 BIF/m² |
| Non-solid construction | 15 BIF/m² |
For undeveloped surfaces, old texts also provided modest unit amounts, modulated according to the level of infrastructure in the zone (minimal, average, high). The current Municipal Law has retained the logic, but with a new authorized scale (6.25 to 50 BIF/m²) allowing municipalities to finely adjust the tax pressure.
Note: if the calculated tax amount is less than 1,000 BIF, it is simply not collected, avoiding the management of micro-debts.
Declaration, Payment, and Penalties
The property tax follows a specific calendar. Taxpayers, whether Burundian or foreign, must file a declaration before March 31 of each year with the municipal tax service. This declaration must list, for each parcel, all buildings (taxable or not), their area, materials used, access and connection conditions, as well as the land area and available utilities.
Some municipalities, like Mutimbuzi, now condition the signing of any administrative document on proof of payment of the property tax. This practice aims to increase the collection rate and integrate local taxation into daily administrative life.
Penalties for non-compliance are graduated. A declaration delay of less than 30 days results in a 10% increase on the tax due. Beyond that, the tax administration makes an assessment, generally less favorable, with a penalty that can reach 50% of the tax. Voluntarily inaccurate or fraudulent declarations, on the other hand, can lead to a doubling of the assessment, with a 100% penalty.
Another important rule for expatriate buyers: in case of property transfer, the former owner must declare the transaction to the municipal service within one month. If they do not, the new purchaser becomes jointly liable for any outstanding property tax attached to the property. In other words, buying land or a house without checking the tax situation can result in retroactive payment of several years of unpaid taxes.
Exemptions and Relief
The legislation provides for a range of exemptions, mainly for reasons of public interest. Buildings belonging to the State or municipalities and used for a public service or a mission of general utility, without profit motive, are thus exempt. Similarly, properties covered by a ratified international convention may benefit from partial or total exemptions, subject to reciprocity.
Buildings used exclusively for the public exercise of a recognized religion or for housing its ministers may be exempt from tax. This exemption is conditional on the building belonging to a non-profit association having concluded a specific convention with the State. Furthermore, special exemptions also apply to premises dedicated to educational, scientific, social, cultural, or sporting purposes, as well as to facilities dedicated to water catchment, treatment, and sanitation.
To encourage construction, new buildings benefit from a two-calendar-year exemption following the completion of work. Finally, a proportional reduction mechanism allows, upon request, for a tax reduction in case of prolonged vacancy: if a building remains entirely unoccupied, unfurnished, and not generating income for at least 180 days in the year, and if this vacancy was reported within two months, proportional relief may be granted.
Historically, the law also provided for an exemption based on the owner’s overall income (e.g., below a certain annual threshold of 36,000 BIF). Even if amounts and mechanisms have evolved, this philosophy of protecting modest occupants remains perceptible.
Rental Income: Tax on Property Income
Owning a property is the first layer of taxation via the property tax. Renting it adds a second, through the tax on property income (IRF). This levy concerns rent from built or undeveloped properties, regardless of their use (residence, commerce, offices) and irrespective of whether the owner is a resident or expatriate.
The calculation of the IRF is based on the “taxable net income” of each rental contract, determined after deduction of certain expenses. The applied scale is progressive:
| Net Property Income per Contract (BIF) | IRF Rate |
|---|---|
| 0 to 100,000 | 18% |
| Above 100,000 | 25% |
A particularity often overlooked is that taxation is done “contract by contract” and not by adding all leases of the same owner. This means an expatriate owning several small rentals may be taxed on each separately under this scale, which can lead to tax combinations sometimes different from what a global total would yield.
For non-resident owners, the tenant must apply a final withholding tax of 15% on the rent and remit it to the OBR. For an expatriate, this withholding may constitute the final tax in Burundi. The modalities for claiming a tax credit in the country of residence are then determined by the applicable tax treaty.
Some rentals are exempt from the IRF, however: properties belonging to the State or non-commercial public entities, properties whose owners are themselves subject to corporate income tax on the same rents, or, according to texts inspired by other sub-regional legislation, certain social housing projects and very modest rents may be excluded or significantly reduced.
Expatriates, Foreign Companies, and Permanent Establishments
Burundian taxation is not limited to individuals. Foreign companies operating in Burundi may, voluntarily or not, create a “permanent establishment,” a central concept in international tax law. This is a fixed place of business through which a non-resident enterprise carries out all or part of its activity in Burundi: an office, a long-term construction site, a workshop, etc.
Standard corporate income tax rate applicable to profits of a permanent establishment and to property income of a resident company.
For expatriates creating a local structure – LLC, branch, joint venture – the question is therefore not so much whether there will be tax, but under what title and on what basis. In many cases, double taxation treaties will stipulate that the profits of a permanent establishment in Burundi are taxable exclusively in Burundi, with the parent company’s country of residence applying only a tax credit or exemption mechanism.
Withholding tax rate applicable to payments made by a Burundian entity to a foreign entity for services, interest, royalties, or rent.
Best Practices for Expatriates: Avoiding Pitfalls
In practice, the difficulties encountered by expatriates in Burundi stem less from the level of rates than from lack of knowledge of the rules and lack of documentation in case of an audit. A few simple principles help limit risks.
To determine your tax residence status in Burundi, assess your situation against local criteria and international treaties. A prolonged stay, the installation of your family locally, and carrying out your main professional activity there are elements that support Burundian tax residence, even if you retain strong ties with your country of origin. Conversely, frequent mobility and an employment contract tied to abroad may justify non-resident status, but you must be able to provide the necessary proof.
Next, keep proper accounts or at least clear documentation. Burundian texts require taxpayers exceeding certain turnover thresholds to produce supporting statements with their declaration, and taxes paid abroad are only considered for a tax credit on condition they are justified by withholding certificates or collection notices.
Before purchase, verify the property tax with the municipality. After acquisition, declare the property on time, keep proof (declaration and receipts), and immediately report any changes (sale, renovation, prolonged vacancy).
Regarding rental, it is prudent to include withholding tax matters in contracts (especially for non-residents), specify who bears the tax burden, and ensure the tenant is aware of their obligations when acting as a collector.
A Changing Taxation, Anchored in its Regional Environment
Since the major 2013 reform, income tax in Burundi has been progressively adjusted to align with regional standards, particularly those of the East African Community. The shift from a maximum marginal rate of 35% to 30%, for both individuals and corporate profits, is part of this dynamic, as is the reduction of the tax on real estate capital gains from 20% to 15%.
To compensate for relief measures, Kenya has expanded taxable categories and multiplied withholding taxes (on invoices, dividends paid to non-residents, and real estate transfers by foreigners). The strengthening of the OBR and the clarification of tax codes improve the system’s readability, but gray areas persist, requiring careful legislative monitoring.
For expatriates, this evolution is a double-edged sword. On one hand, it ensures a more predictable and regulated legal environment, notably through double taxation avoidance agreements under negotiation or already ratified with key partners, starting with neighbors in the region and certain investor countries. On the other hand, it reduces the possibilities of staying “off the radar” by accumulating income and real estate without worrying about declarations.
Ultimately, moving to or investing in Burundi as an expatriate requires viewing taxation not as a purely administrative constraint, but as an essential element of wealth and professional strategy. Anticipating your tax status, understanding the functioning of the income tax scale, mastering the rules of property tax and rental income, and relying when necessary on international treaty mechanisms: these are the keys to ensuring a long-term Burundian project without unpleasant tax surprises.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
