Banking, Money and Taxes in Zambia

Managing your banking, money, and taxes in Zambia is becoming much easier as the system becomes more digitised. Zambia’s banking system has also become more competitive in recent years, with both local and international banks offering a range of services to Zambians and expats alike.

Money in Zambia

The national currency is the Zambian Kwacha (ZMW) which is subdivided into 100 ngwee. The kwacha is available in the following denominations:

• Notes: 2 ZMW, 5 ZMW, 10 ZMW, 20 ZMW, 50 ZMW and 100 ZMW
• Coins: 5, 10 and 50 ngwee and 1 ZMW

Foreign currency exchange can be expensive in Zambian bureaux de change. It's important not to change money on the streets, as many of these operations are part of a scam and unsuspecting expats risk being ripped off.

Banking in Zambia

Expats can choose from several banks in Zambia, including local and international options. Mobile and online banking services are available at most banks.

Opening a bank account in Zambia

While it is possible to open a bank account in Zambia, many expats maintain an account in their own country. If opening a local account, it may be safer and easier to use an international bank with a presence in the country.

The process for opening a bank account in Zambia is fairly straightforward. You'll need to provide the bank with a copy of your passport, proof of your residence in Zambia, proof of your source of income, and a taxpayer identification number (TPIN). Most banks allow customers to open a bank account online, but you may need to visit a branch for verification after submitting your application. 

ATMS and credit cards

There are many ATMs in the main cities, such as Lusaka and Livingstone, but very few in rural areas. Due to the unreliability of some ATMS, you should carefully plan how much you'll spend ahead of time.

While Zambia remains a largely cash-based society, credit cards are accepted at most large establishments in Zambian cities.

Taxes in Zambia

Income taxes in Zambia are implemented along a progressive scale from 0 to 37 percent, depending on income and resident status. Anyone living in Zambia for 183 days or more per tax year is considered a tax resident of the country. This means they are taxed on the income earned in the country as well as on certain incomes like interest and dividends earned in foreign countries. 

Non-tax residents are generally only taxed on income earned in Zambia. Corporate tax is higher, and there is a specialised mining tax. 

Tax regulations in Zambia are subject to change, and expats should enlist the services of a registered tax consultant to assist them with their Zambian taxes. 

Useful links

• Zambia Revenue Authority