Banking, money and taxes in Mozambique

The banking system in Mozambique is gradually undergoing modernisation, although certain aspects, like the language barrier, can still be challenging for expats. Understanding the intricacies of banking, money and taxes in Mozambique can help you better manage your finances when moving to the country.

Money in Mozambique

The country’s currency is the Mozambican Metical (MZN), which is divided into 100 centavos. The plural is meticais.

• Notes: MZN 20, MZN 50, MZN 100, MZN 200, MZN 500, and MZN 1,000
• Coins: MZN 1, MZN 2, MZN 5, and MZN 10, and 50 centavos 

Both South African Rands (ZAR) and United States Dollars (USD) are also widely accepted and used in Mozambique.

Banking in Mozambique

A variety of banks are available to expats in Mozambique. International banks like Barclays Bank, and a few South African banks such as First National Bank and Standard Bank, operate in the country.

Most of the head offices are located in Maputo, with branches across Mozambique. Withdrawing large amounts of currency out of a Mozambican bank account can prove difficult, as can transferring funds out of the country. Expats often choose to keep a non-Mozambican bank account for working with larger sums of money, and make use of specialised companies to send money abroad.

Opening a bank account

Banks in Mozambique are open from Monday to Friday between 8am and 3pm. Non-residents are able to open a bank account. You will need a number of documents, though the exact requirements can vary depending on the bank. Most banks offer some form of online banking, but some transactions may require a visit to the physical branch.

ATMs and credit cards

ATMs are easy to find in the capital, Maputo. Most ATMs have limits on how much money can be withdrawn in a single transaction. There are also limits on the amount that can be withdrawn throughout the day. ATMs are less common in more rural areas and have a tendency to run out, so it’s a good idea to carry some spare cash.

ATMs will generally accept international debit and credit cards alongside local cards. Most banks charge a transaction fee for international withdrawals. However, some have partnered with Mozambican banks to waive these fees.

Credit cards are readily accepted in major Mozambican cities and towns, although some expats report issues with Mastercard. It is advisable to use a Visa card and have spare cash on hand, especially in rural areas.

Taxes in Mozambique

All residents of Mozambique are eligible to pay tax. For tax purposes, a resident is classified as a person who has lived in Mozambique for at least 180 days during a 12-month period. Income tax is charged above a certain minimum income threshold, with the amount ranging from 10 to 32 percent, depending on your salary. Non-residents are only taxed on income earned in Mozambique, with a flat rate determining the amount due. 

As expat tax matters can be complex, we recommend consulting a tax practitioner with experience in the area.