Umbrella Company in Angola

Independent contracting in Angola isn’t always straightforward. You’ve got immigration issues, tax difficulties, and mountains of complex admin work. Even worse, missteps can cost you serious money, or even land you in legal trouble.

Before you consider taking a contract in Angola, you should be aware of what you’re getting into – and how you can make it simpler

Difficulties of Contracting in Angola

Generally, you need to have an employer sponsor in order to secure the appropriate work permit and work visa for Angola.

If you’re working independently, it can be difficult to find clients willing to sponsor you. Moreover, even if your client can do this, you’ll need a new sponsor each time you decide to take on a new contract. Of course, every new sponsor will mean more paperwork.

Also, are you familiar with the intricacies of the tax system in Angola, as well as your own country’s laws on overseas earnings? If so, good on you!

However, if you’re like the rest of us, figuring out (much less reducing) your tax liability in Angola and your home country can seem like full-time work in itself.

How Umbrella Companies Work

Most freelance workers aren’t superheroes who successfully tackle these issues all on their own. There are companies who specialise in helping workers make the most out of their contracts.

They’re called Umbrella Companies (or, contractor management companies).

Basically, an Umbrella Company acts as your full-time employer, even though you maintain your independence as a contractor. They collect and filter payments from your clients, filtering out the necessary social security and fees. You send them your timesheets, and they send you payments.

Because they act as your “employer,’ they can sponsor you and provide a single work permit for multiple contracts in Angola. Even better, most are experts in Angola and expat tax law, meaning they’ll also help you optimise your earnings in Angola.

Although the Umbrella Company is technically your “employer,” you’re essentially freeing yourself to work even more independently. You still dictate your contracts, your hours, your schedule. The Umbrella Company simply filters out the time-consuming admin and immigration issues, allowing you to focus on your new contract.

Why Use an Umbrella Company in Angola

Most people want to do their work, earn their money and enjoy their spare time without taking on loads of admin in a new country. That is why an umbrella company can help.

When you’re working through an Umbrella Company, you’ll essentially be outsourcing the admin and tax issues to specialists.

While the umbrella company will charge a fee, you’ll likely end up saving more money in the long run: you’ll be able to focus on your work, expertly reduce your tax liability, and comply with all laws and regulations in Angola (which means avoiding fees, fines, or even worse penalties).

How We Can Help You

There’s a huge variety of Umbrella Companies with different specialities and advantages in Angola. How do you find the right one for your circumstances?

We work closely with Umbrella Companies all throughout Angola and match contractors with the right company for them. If you’ve already secured a contract in Angola, we can help you find your best match (for free). Or, we can simply give you feedback on your situation (for free). 


A Contractor's Guide to Taxes in Angola

One of the most consistently challenging aspects of contracting in Angola is complying with the country’s tax system. As well as paying tax in Angola, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge. 

How do I calculate my taxable income in Angola

If you’re working in Angola under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Angola for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Angola, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Angola through PAYE is left with the prospect of doing everything themselves.

Do you know much about Angolan Tax Law? Does Angola have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Angola can range from 5 to 17% percent, and you need to be sure you are placed in the correct tax brackets.

Tax Filing in Angola

When Do You Need to Lodge Your Tax Return?Self-employed individuals must file returns in March following the end of the fiscal year (31 December). Employees are not required to lodge any tax returns. It is the entity that pays the income that deals with the tax administration.
Tax Filing DeadlineEnd of March for self-employed individuals and end of February for employers.
Can you file it online?Yes,

How to File Taxes in Angola

Step 1: Income taxes on employees are withheld under a Pay-as-you-earn system for each month.

Step 2: Employers pay this tax to the tax office through a tax assessment document and receive a revenue collection document which serves as a proof of payment.

Step 3: By the end of February each year, employers submit the proof of payment documents and file an Employment Income Tax annual return (‘Modelo 2’) which discloses:

  1. Number of employees:
  2. Amount of wages and other income paid to each employee during the prior year.
  3. Amount of Employment Income Tax withheld for the employee

Tax Figures in Angola

CurrencyAngola Kwanza (AOA)
Tax-free Threshold in Angola34,450 AOA
Income Tax Rates
Grossed Income Tax Rate (%)
Between 34,451 and 35,000 The excess of 34,450
Between 35,001 and 40,000 550 + 7% upon the excess of 35,000
Between 40,001 and 45,000 900 + 8% upon the excess of 40,000
Between 45,001 and 50,000 1,300 + 9% upon the excess of 45,000
Between 50,001 and 70,000 1,750 + 10% upon the excess of 50,000
Between 70,001 and 90,000 3,750 + 11% upon the excess of 70,000
Between 90,001 and 110,000 5,950 + 12% upon the excess of 90,000
Between 110,001 and 140,000 8,350 + 13% upon the excess of 110,000
Between 140,001 and 170,000 12,250 + 14% upon the excess of 140,000
Between 170,001 and 200,000 16,450 + 15% upon the excess of 170,000
Between 200,001 and 230,000 20,950 + 16% upon the excess of 200,000
More than 230,001 25,750 + 17% upon the excess of 230,000

There are 3 groups of taxation

  1. Group A: Income earned by dependent employees.
  2. Group B:  Income earned by self-employed workers, company directors, as well as board members.
  3. Group C:  Income earned by individuals carrying out an industrial or commercial activity listed in the minimum profits table.
  • Group A are taxed at progressive rates up to 17% according to the above table.
  • Group B are taxed at a flat rate of 15%. This 15% tax rate is applicable to 70% of the gross income.
  • Group C are taxed at:
    • A flat rate of 30% on the profits established in the minimum profits table and
    • A flat rate of 6.5% on the amount of sales of goods and services when turnover is in excess of 4x the maximum value established in the minimum profits table

Tax Residency in Angola

When do you become a tax resident in Angola

  • Maintains a residence (i.e. habitual residence) in Angola on 31 December of each fiscal year.
  • Spends more than 183 days, consecutive or not, in Angola in each fiscal year.

Despite an individual being deemed a tax resident in Angola, only the income sourced in Angola is subject to taxation.

Does the 183 day rule apply in Angola


Am I taxed on my global income in Angola

No. Only income paid by an Angolan entity or by an entity with a head office, residence, or permanent establishment in Angola is subject to taxation. 

Can you set up your own Limited Company in Angola

How long does it take to set up 36 days
How much does it cost15,820 AOA + fee to obtain a commercial operations permit.
Is it easy? Starting a Business rank: 134. Low rank means that setting up a limited company is difficult.

Tax Calculator in Angola

If you are a contractor and want a calculation on your tax and net retention in Angola, we can supply it to you free of charge. 

Using an Umbrella Company for Income Tax in Angola

Contractors in Angola are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. An Angolan umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Angolan taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Angola tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax in Angola

We work with numerous umbrella companies in Angola, many of whom are experts in tax and immigration laws. If you have any questions about tax in Angola, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Angolan work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Angola but without the overhead of directly dealing with the Angolan tax authorities. Get in touch with us today for some reliable advice on tax in Angola!


A Contractor's Guide to Work Permits in Angola

Immigration is one of the primary concerns for any contractor hoping to start working in Angola. Permanent employees will find it easy to get their Angolan work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer.

The Angolan work permit, is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Angola is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue. 


How Can Umbrella Companies Help You Get a Work Permit in Angola ?

As your permanent employer, umbrella companies are able to sponsor you for your work permit provided they’re on the register of approved sponsors. Many different companies offer this service, because it makes contracting in Angola infinitely simpler and saves you the hassle of continuous paperwork. Instead of changing your work permit every time you get a new contract, you can just work how you ordinarily would under the same permit. They protect you from the bureaucratic “rain” of legal compliance with the Angolan immigration authorities. They can even deal with the Angola Embassy directly. 

Through their service you may be able to use a business visa to get started quickly and then transition to a work visa in Angola. It depends on your specific visa requirements. Be aware you may have to register for a residence permit in Angola.

Client comment

"Great advice and excellent service on contracting and immigration solutions in the UK. I would highly recommend Tim and the team to assist you with accurate, clear and concise contracting advice in the UK or any other country for that matter."

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Shell International Trading & Shipping