Rwanda Benefits from Double Taxation Agreements with 18 Countries

KIGALI - December 22, 2025 - Rwanda has signed double taxation avoidance agreements with 18 countries, a move that has significantly contributed to attracting investors and strengthening the country’s position as a regional financial hub, the Minister of Finance and Economic Planning, Yusuf Murangwa, has said.

The minister made the remarks as the Chamber of Deputies approved a tax agreement between Rwanda and the Hong Kong Special Administrative Region of the People’s Republic of China. The agreement, signed in Hong Kong on October 9, 2025, aims to eliminate double taxation on income and prevent tax evasion.

According to Murangwa, the agreement will strengthen bilateral relations, promote trade and investment, enhance cooperation in tax matters, and facilitate the exchange of information related to tax evasion and avoidance, while ensuring respect for taxpayers’ rights.

“This agreement also helps us make Kigali a financial services hub,” Murangwa said.

He explained that Rwanda prioritizes signing such agreements with major trade and investment partners, as part of a broader strategy to attract foreign investors by creating a predictable and favorable tax environment.

“The Government of Rwanda is committed to increasing the number of countries with which it has agreements to eliminate double taxation on income and prevent tax evasion,” he added.

During the parliamentary session, MP Phoibe Kanyange questioned the tangible benefits Rwanda has gained from these agreements and asked how the country selects its partners.

In response, Murangwa said Rwanda has already approached 75 countries that could potentially sign similar agreements, while 18 agreements are currently in force and others are under negotiation.

“This requires a strong monitoring mechanism, because circumstances can change either in Rwanda or in partner countries,” he said. “These agreements are meant to facilitate financial investments, and monitoring them is part of the responsibilities of the Kigali International Financial Centre (KIFC).”

Murangwa noted that although Rwanda has only recently begun positioning itself as a financial hub in Africa through the KIFC, the results are already becoming visible.

“We are still at an early stage, but the benefits are starting to show. Some financial-sector investors have already established operations in Rwanda,” he said.

He added that Rwanda benefits not only through taxation but also through fees and service-related revenues, which in some cases generate more income than direct taxes, while remaining attractive to investors.

On the criteria for selecting partner countries, Murangwa emphasized that Rwanda focuses on strategic national interests and partners with countries that have strong financial influence and integrity.

“Hong Kong, for example, is a very strong international financial center. Working with such partners helps attract investment to the region and ensures that capital is spent in Rwanda,” he said.

Murangwa also stressed that investors themselves seek jurisdictions with double taxation agreements to avoid being taxed twice.

“We are careful and work only with countries that have integrity. We would not cooperate with countries that could create financial risks for Rwanda,” he said.

Earlier this month, on December 11, 2025, the Kigali International Financial Centre (KIFC) marked five years of operation, during which more than 200 investors established operations in Rwanda, with investments exceeding $1 billion.