New law for private investment in the Republic of Angola

Available languages: PT

The new law for private investment in the Republic of Angola, Law 14/15, was published on 11 August. It went in to force on the same day and this revokes the previous Law 20/11.

This new regime applies to any amount of foreign investments, and to domestic investments whose total amount corresponds to the same amount or more than Kz. 50,000,000.00 (fifty million Kwanzas). The benefits and incentives, namely tax benefits, are applicable only to foreign investments whose total amount corresponds to the equivalent in Kwanzas to or exceeding USD. 1,000,000.00 (one million dollars of the United States).

The new law establishes that foreign investment in the sectors listed below is only allowed when made in partnership with Angolan citizens, with state owned companies or with Angolan companies where the Angolan partner holds at least 35% of capital and effective participation in the management reflected in the shareholders' agreement:

  • Electricity and Water;
  • Hotels and Tourism;
  • Transport and Logistics;
  • Construction;
  • Telecommunications and IT;
  • Media.

Shareholders' loans may not represent more than 30% of the investment made by the incorporated company and are only repayable after three years. It also brings an additional tax rate on distribution of dividends or profits which exceeds the participation in the share capital. The granting of tax incentives and benefits is now made in accordance with objective criteria set out in the published law; namely number of jobs created, amount of the investment and the investment location.

Further regulation to this law is being prepared, but it is not yet published.