Djibouti

Eastern Africa

Africa

A low-cost East African economy with low local wage costs, but a weak passport (~45 destinations), limited English and a long 10-year naturalization wait.

30
Overall score
Limited · Penalty applied · 88% data coverage
Language
Arabic, French
Currency
DJF
Citizenship
10 years
Personal tax
PwC does not publish a headline personal tax rate for Djibouti.
Cost of living
Consumer price level 50 (world = 100, 2025)

Rules change often. Confirm any immigration, tax or legal decision with a qualified professional.

Score breakdown
53
Access
17%
54Residence12%
51Citizenship and passport5%
43
Earning power
25%
23Salary and work12%
61Buying power13%
40
Business and wealth
20%
40Taxes7%
39Business8%
41Investment5%
35
Daily life
25%
37Quality of life18%
30Education7%
27
Rights and institutions
13%
24Freedom6%
30Rule of law7%

Severe safety risk (36) cut the overall score from 40 to 37.

Healthcare collapse (30) cut the overall score from 37 to 32.

Weak rights and institutions (27) cut the overall score from 32 to 30.

Pros

  • Internet use 65%
  • Relative affordability score 63/100
  • Human development score 51/100

Cons

  • Passport mobility score 23/100
  • Institutional environment score 33/100
  • Tax friendliness score 40/100

Best for

Applicants prepared to use local languagesResidents prioritizing opportunity over low pricesPeople with a confirmed local employment or study route

Score profile

Access
Residence
54
Citizenship
63
Passport
31
Earning power
Salary & work
23
Buying power
61
Cost of living
76
Economy
61
Business and wealth
Taxes
40
Personal tax
40
Corporate tax
40
Business
39
Investment
41
Wealth building
41
Daily life
Safety
36
Healthcare
30
Environment
53
Infrastructure
51
Education
30
HDI
51
Rights and institutions
Freedom
24
Rule of law
30
How the scores are calculated

Access

Residence
Openness to residents
Moderate
54
Migrant stock10.8% of population (2024)
Regulatory quality-0.85 (−2.5 to 2.5) (2024)

Source: World Bank World Development Indicators

Main pathways
Employment residenceStudy residenceFamily reunificationBusiness or investment residence where eligible
StudentAdmission, proof of funds, accommodation, insurance, and immigration approval are normally required; work rights vary.
WorkA local employer, qualifying occupation, or other work authorization is normally required; labour-market tests may apply.
Self-employedBusiness registration, tax registration, and a residence or work authorization suitable for self-employment are generally required.
PermanentEligibility depends on years and continuity of lawful residence, route, income, character, and country-specific legislation.
Citizenship
Citizenship accessibility
Moderate
63
Years required10 years
Dual allowedYes
LanguageLanguage, integration, character, and documentation requirements depend on the nationality law and route.
ResidenceHeadline ordinary naturalization period: 10 years. Continuous residence and absence rules may apply.
NotesThis is a statutory headline from a sourced comparison table. Confirm the current nationality law and administrative practice before relying on it.
Passport
Passport power
Limited
31
61 / 198
Mobility
#80
Global rank
Yes
Biometric
  • Visa-free24
  • On arrival34
  • eTA3
  • Visa required137

Placeholder estimates for 2024 to 2025. Check entry rules with each destination before travelling.

Earning power

Salary & work
Labour-market strength
Low
23
Output per worker$41,264 PPP (2024)
Unemployment26.0% (2025)
Participation31.7% of 15+ (2025)

Source: World Bank World Development Indicators

Mean monthly earnings of employees
Overall$450 · $812 PPP (2017)

Source: ILOSTAT (International Labour Organization)

Tech salary (estimate)GNI per capita benchmark: $8,660 PPP (2025); this is not a technology salary quote.
FreelanceInternet use is 65%; remote and freelance access still depends on payments, language, regulation, and immigration status.
Job marketLatest comparable unemployment rate: 26.0%. Role-specific demand varies substantially by city and sector.
Buying power
Purchasing power score
Moderate
61
GNI / person$8,660 PPP (2025)
Consumption / person$4,854 PPP (2024)
Price level50 (US = 100) (2025)
Income inequality41.6 Gini (2017)
Inflation-0.3% / yr (2025)

Source: World Bank World Development Indicators

Cost of living
Affordability
Good
76
Price level50 (US = 100) (2025)

Source: World Bank World Development Indicators

RentModel benchmark: about $300 monthly housing share; derived from the World Bank consumer price level, not a market listing.
MonthlyModel benchmark: about $750 / month at a US$1,500 world-price baseline.
CitiesDjibouti City, Ali Sabieh
Economy
Economic strength
Moderate
61
Output & income
GDP$4.6B (2025)
GDP / person$3,906 (2025)
GNI / person$8,660 PPP (2025)
GDP growth7.0% / yr (2024)

Source: World Bank World Development Indicators

Stability & labour
Inflation-0.3% / yr (2025)
Unemployment26.0% (2025)
Output per worker$41,264 PPP (2024)

Source: World Bank World Development Indicators

Sector composition
Agriculture2.3% of GDP (2025)
Industry16.6% of GDP (2025)
Services75.7% of GDP (2025)

Source: World Bank World Development Indicators

Main industries
Port & logisticsMilitary basesServicesConstruction
Top exports
Re-exports & transit servicesLive animals
TypeLower-middle-income, logistics-driven
Key sectorsStrategic ports (the gateway for Ethiopia), Foreign military bases, Logistics
SummaryA small economy built on its strategic location, serving as a port, logistics and military-base hub on the Red Sea.
CurrencyDjiboutian franc (pegged to the US dollar)

Business and wealth

Taxes
Tax friendliness
Limited
40
PersonalPwC does not publish a headline personal tax rate for Djibouti.
CorporatePwC does not publish a headline corporate tax rate for Djibouti.
Capital gainsTreatment varies by asset, entity, residence, holding period, and domestic exemptions; consult the current country summary.
DividendsDomestic and withholding rates vary with residence, ownership, and treaty eligibility.
Exit taxNo harmonized cross-country answer; verify current deemed-disposal and residence-cessation rules.
Foreign companiesPermanent-establishment, management-and-control, transfer-pricing, withholding, and reporting rules may apply.
Personal tax
Personal tax
Limited
40
PersonalPwC does not publish a headline personal tax rate for Djibouti.
FreelanceFreelancers typically need appropriate immigration permission plus business and tax registration.
Capital gainsTreatment varies by asset, entity, residence, holding period, and domestic exemptions; consult the current country summary.
DividendsDomestic and withholding rates vary with residence, ownership, and treaty eligibility.
Exit taxNo harmonized cross-country answer; verify current deemed-disposal and residence-cessation rules.
Corporate tax
Corporate tax
Limited
40
CorporatePwC does not publish a headline corporate tax rate for Djibouti.
Capital gainsTreatment varies by asset, entity, residence, holding period, and domestic exemptions; consult the current country summary.
DividendsDomestic and withholding rates vary with residence, ownership, and treaty eligibility.
Foreign companiesPermanent-establishment, management-and-control, transfer-pricing, withholding, and reporting rules may apply.
Business
Business friendliness
Limited
39
Regulation & bureaucracy
Regulatory quality-0.85 (−2.5 to 2.5) (2024)
Government effectiveness-0.49 (−2.5 to 2.5) (2024)

Source: World Bank World Development Indicators

Operating rules
Foreign companyForeign ownership is generally possible, subject to sector restrictions, licensing, local-participation rules, and beneficial-ownership checks.
Local companyLocal company forms are available; registration, tax, capital, director, address, and licensing requirements vary.
FreelanceFreelancers typically need appropriate immigration permission plus business and tax registration.
Investment
Investing environment
Limited
41
Private credit25% of GDP (2025)

Source: World Bank World Development Indicators

Capital gainsCapital-gains treatment varies by asset, holding structure, residence, and treaty position.
DividendsData not available yet
ETFs & fundsData not available yet
Wealth taxVerify current national and subnational net-wealth, property, inheritance, and transfer taxes.
BrokersLocal and international broker access depends on residency, exchange controls, sanctions screening, and platform onboarding.
Foreign accessData not available yet
Tax-advantagedData not available yet
Wealth building
Wealth accumulation
Limited
41
Salary & work
Low
23
Business
Limited
39
Investment
Limited
41
Tax friendliness
Limited
40
Cost of living
Good
76

Daily life

Safety
Safety & stability
Limited
36
Institutions & stability
Control of corruption-0.89 (−2.5 to 2.5) (2024)
Political stability-0.56 (−2.5 to 2.5) (2024)

Source: World Bank World Development Indicators

Check current government travel and security advice before relocating.

Healthcare
Healthcare score
Limited
30
Outcomes
Life expectancy66.2 years (2024)
Under-5 mortality48.9 per 1,000 births (2024)

Source: World Bank World Development Indicators

Capacity & resourcing
Physicians0.21 per 1,000 (2022)
Hospital beds1.40 per 1,000 (2018)
Health spending$155 PPP / person (2023)

Source: World Bank World Development Indicators

System & costs
SystemPublic and private provision coexist; eligibility, service quality, and capacity vary by location.
InsuranceInsurance and proof-of-cover requirements depend on immigration status, employer, and residence route.
Average costHealth expenditure: $155 PPP per person (2023).
Environment
Environment score
Moderate
53
Environmental pressure
PM2.5 exposure40.3 μg/m³ annually (2023)
Water stress6.3% (2022)

Source: World Bank World Development Indicators

Infrastructure
Infrastructure score
Moderate
51
Digital infrastructure
Internet use65.3% (2024)
Internet resilience45 / 100 (2026)
Fixed speed46 / 100 download index (2026)
Mobile speed44 / 100 download index (2026)

Sources: World Bank World Development Indicators · Internet Society Pulse Internet Resilience Index

Utilities
Electricity access65.2% (2023)

Source: World Bank World Development Indicators

Transport
Transport quality2.30 / 5 (2022)
Rail density33.7 km / 1,000 km² (2003)
Air connectivity3,294 departures / million people (1991)

Source: World Bank World Development Indicators

Education
Education score
Limited
30
Attainment
Expected schooling6.2 years (2023)
Mean schooling4.0 years (2023)

Source: UNDP Human Development Report 2025

Participation & investment
Tertiary enrolment5% gross (2011)
Education spending3.8% of GDP (2018)

Source: World Bank World Development Indicators

TuitionFees vary by institution, programme, level, and nationality; no harmonized official tuition series is used.
Public universityCheck current public-university fee schedules and scholarship rules directly with each institution.
LanguagesArabic, French
Student workStudent employment rights vary by permit and may require separate authorization or hour limits.
HDI
Human development score
Moderate
51
HDI0.513 (2023)

Source: UNDP Human Development Report 2025

Long & healthy life
Life expectancy66.0 years (2023)

Source: UNDP Human Development Report 2025

Knowledge
Expected schooling6.2 years (2023)
Mean schooling4.0 years (2023)

Source: UNDP Human Development Report 2025

Standard of living
GNI / person$6,368 PPP (2023)

Source: UNDP Human Development Report 2025

Rights and institutions

Freedom
Freedom score
Low
24
Freedom in the World24 / 100 (Not free)
Rule of law
Rule of law score
Limited
30
Rule of Law percentile30 / 100
Resources

Data is illustrative. Not legal or tax advice.