Retiring in Ethiopia: Right of Residence, Taxation of the Pension, Health

The Ethiopian immigration and citizenship service describes a temporary residence permit for company employees, students, shareholders and journalists, and a permanent five-year renewable permit linked to an employer; the documents requested (employer’s letter, commercial certificate, valid visa) correspond to an employment situation. The pages consulted mention neither a permit dedicated to retirees nor a pension income condition. A plan to settle is therefore prepared with the Ethiopian embassy in Paris and Ethiopian immigration.

France Diplomatie specifies that the visa is requested online before departure, that the visa on arrival is unreliable and strongly advised against, that an extension costs USD 100 a month (tourism) and that an overstay is punished by USD 3,000 plus USD 30 a day. Residence permits cost USD 150 to 1,500. For a trial stay, a tourist e-visa is enough, with no paid activity.

• Entry: e-visa with a paper copy; keep proof of entry and exit and check the stamps, above all at land border posts.
• Currency: up to USD 10,000 without declaration for a stay of three months at most; unjustified possession of foreign currency may lead to prosecution; do not buy dollars without the immigration document.
• Extension: USD 100 for one month (tourism), USD 160 (business), up to USD 300 for three months; to be requested ten days before expiry.
• Consular registration: France Diplomatie recommends registering with the Ariane system to receive alerts.

See also the page on living in Ethiopia.

The France-Ethiopia tax treaty, signed in Paris on 15 June 2006 and in force since 17 July 2008, distinguishes several regimes. Article 18 provides that pensions and annuities paid to a resident in respect of past employment are taxable only in the State of residence (paragraph 1), but that pensions and similar payments made under the social security legislation of a State are taxable only in that State (paragraph 2). Public pensions fall under Article 19: they are taxable only in the State that pays them, unless the beneficiary is a resident and a national of the other State.

For a French retiree living in Ethiopia, a basic pension paid under French social security legislation therefore falls, according to the text read on impots.gouv.fr, under taxation in France; the classification of other pensions (supplementary schemes, annuities) is checked case by case with the non-resident tax office. Tax residence is determined under Article 4; Article 23 provides a tax credit to eliminate double taxation. The Ethiopian taxation regime for a resident is confirmed with the Ethiopian tax authorities.

Form S1, which allows a retiree to receive care at France’s expense in the European Union, does not apply in Ethiopia: no social security agreement links the two countries (CLEISS list; the CLEISS is the French liaison centre for international social security). The CLEISS indicates that the retiree finds out what the local scheme covers, joins the CFE or takes out private insurance. The CFE offers its retirees’ plan (with a contribution that depends on age and the plan chosen), with no health questionnaire, with a three- or six-month waiting period in case of late enrolment. Ethiopian community-based insurance is aimed mainly at the informal sector (WHO).

During a temporary stay in France, cover requires a pension from a French basic scheme corresponding to at least fifteen years of insurance; the CNAREFE handles the files of retirees of the general scheme outside the European Union. Outside France, the CSG, the CRDS and the Casa are no longer withheld; a health insurance contribution of 3.2% (basic) and 4.2% (complementary) applies in case of affiliation to a French scheme. See the guide to retirees’ health insurance abroad and the page on healthcare reimbursement in Ethiopia.

French residents live mainly in Addis Ababa, where the embassy, the Franco-Ethiopian lycée and the most extensive provision of care in the country are found. France Diplomatie classes the city under heightened vigilance, reports rising crime that targets foreigners and recommends travelling by car. The capital is free of malaria, but the altitude and air pollution deserve the attention of people with a heart or respiratory history.

The “Economic reference points” block above presents inflation and the birr exchange rate. The official pages consulted publish no rent scale: amounts are requested from local agents and checked in writing. The budget includes health insurance with evacuation, secure travel and the costs of the stay.

France Diplomatie classes Tigray, Amhara, several border strips, Gambela and parts of western Oromia as formally advised against, and a large part of Oromia and certain areas of Afar and Ogaden as advised against except for compelling reasons. The road risk is “very high”: avoid public transport, never drive at night outside the large towns. Ethiopian law punishes homosexuality (1 to 15 years in prison) and heavily penalises visa overstay.

On the health side, the French vaccination schedule must be up to date; yellow fever is recommended; malaria is present below 1,500 metres but absent from Addis Ababa; cholera affects several regions. For a retiree with a chronic condition, the handling of medical history, medical evacuation and the return to France determine the choice of contract: see Ethiopia’s healthcare system and expat health insurance.