Mundo´s freedom rating is essentially a freedom index whereby our teams of specialists rate a combination of freedoms which include freedom from violence and personal attacks, financial freedom from high taxes, business freedom from government interference, and especially from socialism and communism.

Political Stability: 7

Not many countries are able to recover from political turmoil, especially when the conflict last decades and involves an overwhelming majority of the nation. However, Angola proved how there are paths towards an almost complete pacification through the application of democratically-based principles and the selection of agile politicians to guide such a process.

Since 2002, the country entered one of the most politically stable periods since its very existence, allowing for different political parties and associations to participate in the system through semi-democratic methods. It’s important to highlight that African nations are more than often entangled with traditions that limit the implementation of representative democracies as we know them in the West, but Angola has been able to deploy both fair and effective political structures.

Therefore, we can say the country is living its best years in terms of political stability, allowing for foreign investors to look closely into a country that year after year is seeking to look like some of its Western partners. 

Personal Safety: 6

Personal safety might be the least attractive feature of this country, as it has been listed by some Western countries as a dangerous nation. Nonetheless, a set of efforts deployed by the local government have managed to reduce criminal activities especially in areas full of foreign enterprises.

Luanda is the perfect example of such policies, as it has experienced major advances in terms of interpersonal safety. However, it’s necessary to remember anyone traveling to areas outside the capital (specifically those with diamond-mining activities) to look after their belongings at all times. Ultimately, the best advice is to always be careful, regardless of the country one is visiting.

Taxation: 7

When compared to other countries within the African continent, Angola has one of the most attractive taxation systems. Through its scheduler tax system, Angola currently has an industrial tax, the work-related income tax, the investment income tax, and the real estate tax. Taxes on consumption can include a 1% turnover tax.

Back in 2014, tax reform was set in place seeking to optimize the way in which businesses produced profits within the country. These adjustments included the reformation of the General Tax Code, in which the most significant change is the amnesty regime. This regime allows amnesty for all debt-related taxation including payment penalties, compensatory interests, and judicial costs. 

Bank transfers below 300,000$ are not eligible for taxation as long as they are made in compliance with Angolan banking regulations, and residents are allowed to carry up to 15,000$ when traveling and also be exempt from taxation.

The National Agency for Private Investment has a set of tax incentives applicable to industrial tax, investment income tax, and real estate tax. The very specifics of such incentives are settled according to the amount of money being invested as well as the particular business sector in which the investment is being made.

For companies only practicing a specific set of operations within Angolan territory, costs and losses needed to obtain revenue are not eligible for taxation purposes. Also, taxpayers from these companies that have complied with accounting legislation are subject to only a 6.5% tax rate.

Furthermore, business income is subject to up to 30% of taxation ratio, in which a 15% reduction is applicable if the business is related to agriculture, aquaculture, aviculture, livestock, fishing, and forestry activities.

Investment Potential: 7

According to the World Bank, Angola is one of the most unexplored investment environments in the world. Only 3% of its fertile land is currently being used for production, the reason why many financial agencies across the world are turning their eyes towards this African gem.

Commonly, is the oil industry that monopolizes the focus of foreign investment in Angola, as this business sector accounts for up to 90% of the country’s nominal GDP. And even when introducing oneself in this area of the economy can probably mean a safe step towards big streams of revenue, it would be naïve to underestimate the potential of both the agricultural and telecommunications sectors.

Considering the relatively friendly taxation system present in Angola, on top of the uplifting advances in terms of political stability and personal safety, this African nation gains a spot amongst the most attractive countries to do business in the continent. 

Joining efforts with our partners in Pulsar Development, a world-known financial consulting agency with one of the largest investment portfolios in Africa will more than likely provide any smart investor with unprecedented sources of income. 

If you got interested in this country, MUNDO’s specialists can assist you with any business idea or venture you might be up to. Don't hesitate to contact us! 

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