Somalia

Eastern Africa

Africa

A very low-cost East African economy with low local wage costs, but a weak passport (~32 destinations), limited English and weak institutions.

3
Overall score
Low · Penalty applied · 84% data coverage
Language
Somali, Arabic
Currency
SOS
Citizenship
7 years
Personal tax
PwC does not publish a headline personal tax rate for Somalia.
Cost of living
Consumer price level 40 (world = 100, 2021)

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

Score breakdown
35
Access
17%
33Residence12%
39Citizenship and passport5%
26
Earning power
25%
9Salary and work12%
41Buying power13%
30
Business and wealth
20%
40Taxes7%
17Business8%
37Investment5%
16
Daily life
25%
16Quality of life18%
17Education7%
5
Rights and institutions
13%
8Freedom6%
2Rule of law7%

Severe safety risk (9) cut the overall score from 24 to 9.

Healthcare collapse (11) cut the overall score from 9 to 6.

Weak rights and institutions (5) cut the overall score from 6 to 3.

Pros

  • Relative affordability score 75/100
  • Human development score 40/100
  • Internet use 28%

Cons

  • Institutional environment score 15/100
  • Passport mobility score 17/100
  • Tax friendliness score 40/100

Best for

Applicants prepared to use local languagesCost-conscious residentsPeople with a confirmed local employment or study route

Score profile

Access
Residence
33
Citizenship
49
Passport
23
Earning power
Salary & work
9
Buying power
41
Cost of living
86
Economy
28
Business and wealth
Taxes
40
Personal tax
40
Corporate tax
40
Business
17
Investment
37
Wealth building
34
Daily life
Safety
9
Healthcare
11
Environment
82
Infrastructure
34
Education
17
HDI
40
Rights and institutions
Freedom
8
Rule of law
2
How the scores are calculated

Access

Residence
Openness to residents
Limited
33
Migrant stock0.4% of population (2024)
Regulatory quality-1.73 (−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
49
Years required7 years
Dual allowedConditional or route-dependent
LanguageLanguage, integration, character, and documentation requirements depend on the nationality law and route.
ResidenceHeadline ordinary naturalization period: 7 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
Low
23
45 / 198
Mobility
#96
Global rank
No
Biometric
  • Visa-free14
  • On arrival30
  • eTA1
  • Visa required153

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

Earning power

Salary & work
Labour-market strength
Low
9
Output per worker$9,604 PPP (2024)
Unemployment18.9% (2025)
Participation33.8% of 15+ (2025)

Source: World Bank World Development Indicators

Tech salary (estimate)GNI per capita benchmark: $1,640 PPP (2025); this is not a technology salary quote.
FreelanceInternet use is 28%; remote and freelance access still depends on payments, language, regulation, and immigration status.
Job marketLatest comparable unemployment rate: 18.9%. Role-specific demand varies substantially by city and sector.
Buying power
Purchasing power score
Limited
41
GNI / person$1,640 PPP (2025)
Consumption / person$1,471 PPP (2021)
Price level40 (US = 100) (2021)

Source: World Bank World Development Indicators

Cost of living
Affordability
Excellent
86
Price level40 (US = 100) (2021)

Source: World Bank World Development Indicators

RentModel benchmark: about $240 monthly housing share; derived from the World Bank consumer price level, not a market listing.
MonthlyModel benchmark: about $600 / month at a US$1,500 world-price baseline.
CitiesMogadishu, Hargeisa, Kismayo
Economy
Economic strength
Low
28
Output & income
GDP$13B (2025)
GDP / person$661 (2025)
GNI / person$1,640 PPP (2025)
GDP growth4.1% / yr (2024)

Source: World Bank World Development Indicators

Stability & labour
Unemployment18.9% (2025)
Output per worker$9,604 PPP (2024)

Source: World Bank World Development Indicators

Sector composition
Agriculture55.8% of GDP (1990)
Industry9.7% of GDP (1986)

Source: World Bank World Development Indicators

Main industries
LivestockAgricultureTelecomsFishingRemittance-fed services
Top exports
Live animalsCharcoalBananasFish
TypeLow-income, livestock- and remittance-led
Key sectorsLivestock (the export mainstay), Telecoms, Remittances
SummaryA largely informal economy built on livestock exports, telecoms and large diaspora remittances amid fragility.
CurrencySomali shilling (US dollars widely used)

Business and wealth

Taxes
Tax friendliness
Limited
40
PersonalPwC does not publish a headline personal tax rate for Somalia.
CorporatePwC does not publish a headline corporate tax rate for Somalia.
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 Somalia.
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 Somalia.
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
Low
17
Regulation & bureaucracy
Regulatory quality-1.73 (−2.5 to 2.5) (2024)
Government effectiveness-1.95 (−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
37
Private credit5% of GDP (2024)

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
34
Salary & work
Low
9
Business
Low
17
Investment
Limited
37
Tax friendliness
Limited
40
Cost of living
Excellent
86

Daily life

Safety
Safety & stability
Low
9
Institutions & stability
Control of corruption-1.79 (−2.5 to 2.5) (2024)
Political stability-2.26 (−2.5 to 2.5) (2024)

Source: World Bank World Development Indicators

Check current government travel and security advice before relocating.

Healthcare
Healthcare score
Low
11
Outcomes
Life expectancy59.0 years (2024)
Under-5 mortality101.1 per 1,000 births (2024)

Source: World Bank World Development Indicators

Capacity & resourcing
Physicians0.05 per 1,000 (2014)
Hospital beds0.87 per 1,000 (2019)
Health spending$52 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: $52 PPP per person (2023).
Environment
Environment score
Excellent
82
Environmental pressure
PM2.5 exposure18.5 μg/m³ annually (2023)
Water stress24.5% (2022)

Source: World Bank World Development Indicators

Infrastructure
Infrastructure score
Limited
34
Digital infrastructure
Internet use27.9% (2024)
Internet resilience36 / 100 (2026)
Fixed speed49 / 100 download index (2026)
Mobile speed46 / 100 download index (2026)

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

Utilities
Electricity access50.3% (2023)

Source: World Bank World Development Indicators

Transport
Transport quality1.90 / 5 (2022)
Air connectivity54 departures / million people (2019)

Source: World Bank World Development Indicators

Education
Education score
Low
17
Attainment
Expected schooling7.5 years (2023)
Mean schooling1.9 years (2023)

Source: UNDP Human Development Report 2025

Participation & investment
Tertiary enrolment2% gross (1987)
Education spending0.0% of GDP (2023)

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.
LanguagesSomali, Arabic
Student workStudent employment rights vary by permit and may require separate authorization or hour limits.
HDI
Human development score
Limited
40
HDI0.404 (2023)

Source: UNDP Human Development Report 2025

Long & healthy life
Life expectancy58.8 years (2023)

Source: UNDP Human Development Report 2025

Knowledge
Expected schooling7.5 years (2023)
Mean schooling1.9 years (2023)

Source: UNDP Human Development Report 2025

Standard of living
GNI / person$1,475 PPP (2023)

Source: UNDP Human Development Report 2025

Rights and institutions

Freedom
Freedom score
Low
8
Freedom in the World8 / 100 (Not free)
Sources
Rule of law
Rule of law score
Low
2
Rule of Law percentile2 / 100
Sources
Resources
Official references
UN Statistics: M49 country and area codesunstats.un.orgUNDP Human Development Report 2025hdr.undp.orgInternet Society Pulse Internet Resilience Indexpulse.internetsociety.orgWorld Bank World Development Indicatorsdata.worldbank.orgPwC: Somalia corporate tax headlinetaxsummaries.pwc.comPwC: Somalia personal tax headlinetaxsummaries.pwc.comNaturalization comparison and linked nationality lawsen.wikipedia.orgHenley Passport Index 2026 summaryen.wikipedia.org
Quick links
Somalia visa & immigrationgoogle.comSomalia tax residency rulesgoogle.comSomalia citizenship requirementsgoogle.comCost of living in Somaliagoogle.com

Data is illustrative. Not legal or tax advice.