Govt moves to strengthen incentives for major private investments

DÍLI, October 21, 2026 (TATOLI) — The Goverment of Timor-Leste approved a draft amendment to the country’s Private Investment Law aimed at attracting large-scale investments and reinvestment projects considered strategically important to national development.

The proposed amendment to Law No. 15/2017 of August 23 seeks to strengthen the conditions for attracting investment while encouraging projects that contribute to the country’s economic and social development.

“The proposal retains the general scheme for granting tax benefits and customs incentives and introduces a specific scheme for investment or reinvestment projects deemed to be of major national interest, within the framework of the Strategic Development Plan. For these projects, benefits may be granted for 25 years, renewable for an equal period, subject to recognition by Government Resolution, considering the scale or nature of the investment and its economic, social, environmental, or technological impact,” said in a statement.

The legislation also clarifies and expands the framework for special investment agreements, setting out in greater detail the conditions for their conclusion and investors’ commitments, particularly regarding the creation of jobs for Timorese workers and their vocational training, the procurement of goods and services from local suppliers, environmental protection, and support for local communities.

Guarantees of legal and fiscal stability are also established in relation to the benefits granted, without prejudice to the application of rules in the public interest.

Mechanisms for monitoring and supervising projects are strengthened, as are the consequences in the event of non-compliance, including the possibility of terminating the agreement and forfeiting the benefits granted.

TATOLI