Investment Incentives

INVESTMENT OPPORTUNITIES

Sana Hosseini

5/20/20251 min read

a large boat floating on top of a body of water
a large boat floating on top of a body of water

To attract and encourage investment, the Government of Timor-Leste offers a range of incentives, designed to make the country a more competitive and attractive destination for capital.

To attract and encourage investment, the Government of Timor-Leste offers a range of incentives, designed to make the country a more competitive and attractive destination for capital. These incentives may include:

  • Tax Benefits: This can involve reduced corporate tax rates, tax holidays for a specified period, or exemptions for certain types of investments or in specific priority sectors. These are designed to lower the initial cost of investment and improve profitability.

  • Import Duty Exemptions: Exemptions on import duties for machinery, equipment, and raw materials used in approved investment projects. This reduces the cost of setting up and operating businesses, particularly for manufacturing and industrial projects.

  • Special Economic Zones (SEZs): Designated geographical areas with special regulatory and tax regimes designed to attract investment, promote economic activity, and create employment. These zones often offer streamlined administrative procedures and enhanced incentives.

Investors are strongly encouraged to consult with TradeInvest Timor-Leste and local legal/financial advisors to understand the specific eligibility criteria and benefits associated with available incentive schemes. The applicability and extent of these incentives often depend on the sector, size of investment, and contribution to national development goals.

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