Cape Verde

CV CVEEsc Portuguese
Pros
High political stability and low corruption levels compared to regional peers.
Strategic Atlantic location and Remote Working Program for digital entrepreneurs.
Strong protection of property rights and commitment to democratic governance.
Cons
High costs for electricity and water due to limited natural resources.
Small domestic market size and logistical challenges between the islands.
Relatively high corporate tax rates and complex bureaucratic procedures for business.

Long story short: Here, you won't need to grease anyone's palm: Cape Verde is one of the least corrupt countries in Africa, with an administration that runs almost European style.

The flip side: you'll still pay your taxes, paperwork will eat up your time, and since everything arrives by boat, the cost of living climbs and infrastructure stays thin outside Praia.

Beyond that: you'll find a solid but credit-shy banking system, rock-solid security in Praia's upscale neighborhoods, tasty cachupa, and jaw-dropping volcanic landscapes.

VERYLOW TAX 5.5/10 HOLDING 1.8/10 DIVIDENDPIPELINE 1.7/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 4.2/10

Will your income be taxed?

Long story short: YES, A LOT.
Income gets fleeced in Cape Verde (top marginal rate 27.5%), but the residency test is surprisingly hands-off.

The bill is brutal for residents; the whole game is simply not to become one by accident.

01.1 Income tax
Personal income tax
16.5 → 27.5%
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De quoi s’agit-il ?What residents pay on what they earn: salary, freelance income, sometimes dividends too. We show the system (flat or progressive) and the top rate.
Source et informations complémentairesprogressive · 3 brackets
Bracket (USD)Rate
0 – 10,08716.5%
10,087 – 18,91323.1%
18,913 +27.5%
01.2 Tax residence test
A single active rule is enough to make you tax-resident.
183-day rule
Economic interest
does not exist here
Family centre
does not exist here
Habitual abode
Extended-stay test
does not exist here
Income tax simulatori

If you earn a year, you will pay .

Roughly effective, with a marginal rate of .

Will your wealth be taxed?

Long story short: YES, BUT LIGHTLY.
Capital gains get off easy in Cape Verde (1%); the annual wealth tax doesn't (top rate 0.1%). It nibbles your pile every year, sold or not, and over a long hold the nibbling out-eats the sale tax entirely.

Watch the stock, not just the flow.

02.1 Investment income
Capital gains
1%
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De quoi s’agit-il ?The tax on your profit when you sell something that gained value: stocks, property, crypto, a business. Some countries skip it entirely.
Source et informations complémentairesflat · +20% gains on gambling, lottery, betting, prizes awarded in sweepstakes, or contests
Dividend tax
10%
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De quoi s’agit-il ?What you pay when your company sends you dividends. It stacks on top of corporate tax, so the combined bill is what really counts.
Source et informations complémentairesflat
Interest income
10%
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De quoi s’agit-il ?The tax on income from savings, bonds and loans. Matters when choosing where to park your cash.
Source et informations complémentairesflat
02.2 Wealth & estate
Wealth tax
0.1%
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De quoi s’agit-il ?A yearly tax on what you own above a threshold, whether you sell or not. Most countries scrapped it; a few still run one.
Source et informations complémentairesflat
Inheritance system
NONE
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De quoi s’agit-il ?What heirs pay on what they inherit, by category (spouse, children, others), with allowances and top rates. Plenty of countries charge nothing at all.
Source et informations complémentairesno estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply.
02.3 Crypto
Crypto · tax regime
UNREGULATED
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De quoi s’agit-il ?How crypto gains are taxed here: zero, flat, progressive or grey zone. Includes whether crypto-to-crypto swaps count as taxable events.
Source et informations complémentairesFallback rate: 35% · Cape Verde regulates virtual asset service providers (VASPs) under Law 30/X/2023, but has not yet introduced specific tax legislation for individual crypto holders. Consequently, crypto-assets are treated as intangible property under general tax law. Gains are subject to Personal Income Tax (IRPS) under Category G (Capital Gains) or Category B (Business Income) at progressive rates up to 35%. Crypto-to-crypto exchanges are considered taxable events as they constitute a disposal of assets (permuta) under Article 5 of the IRPS Code. The Central Bank (BCV) has issued formal warnings that virtual assets are not legal tender.
Crypto-to-crypto
TAXABLE
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De quoi s’agit-il ?How crypto gains are taxed here: zero, flat, progressive or grey zone. Includes whether crypto-to-crypto swaps count as taxable events.
Source et informations complémentaireseach swap counts as a disposal — gains realised at every trade
FATF travel rule
NOT SIGNED
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De quoi s’agit-il ?Does this country enforce the crypto Travel Rule? If yes, exchanges must identify senders and recipients, like banks do for wire transfers.
Source et informations complémentairesno information-sharing obligation on VASP transfers

Easy to run a company there?

Long story short: NO.
Corporate tax in Cape Verde is 20%, but the rate isn't what hurts. Misuse of corporate assets is a criminal offense; the textbook case is the French abus de biens sociaux: spend your own company's money on yourself and you can end up prosecuted, even as sole shareholder, because the company is a separate legal person and your consent means nothing.

And the registries are public: your name as shareholder, free to browse.

For an owner-operator, those two together weigh far more than the rate, and unlike the rate they don't negotiate. Run it clean and you're fine; run it casually and you'll get burned.

03.1 Rates
Corporate tax
20%
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De quoi s’agit-il ?What companies pay on their profits. The headline rate is a starting point: IP boxes and holding regimes often pull the real rate lower.
Source et informations complémentairesflat · +2% fire brigade surcharge on tax due in the municipalities of Praia and Mindelo
VAT standard rate
15%
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De quoi s’agit-il ?The sales tax baked into almost everything you buy here. One standard rate, plus reduced rates on things like food or books.
Source et informations complémentaires2 distinct tiers in force
8%15%
Energy
8%
electricity
Utilities
8%
water
03.2 Regime & registry
IP Box · Patent Box
NONE
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De quoi s’agit-il ?A discounted tax rate on income from patents, software and designs, often 5 to 10%. A magnet for tech and licensing businesses.
Source et informations complémentairesno IP regime · IP income taxed under standard corporate rules
Misuse of corporate assets
CRIMINAL
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De quoi s’agit-il ?If you spend company money on yourself, is it a crime (prison possible) or a civil matter? Some countries prosecute even sole shareholders.
Source et informations complémentairescriminal liability · Article 493 of the Código das Empresas Comerciais (Legislative Decree No. 3/99) · Cape Verdean law strictly upholds the 'Autonomy of the Legal Entity' (Autonomia da Pessoa Coletiva). Under Article 493 of the Commercial Companies Code (CEC), the misuse of corporate assets or credit for personal benefit is a criminal offense (Abuso de bens ou de crédito da sociedade). This applies even to a sole shareholder-director because the company's assets are legally distinct from the individual's personal patrimony. The crime is committed regardless of the company's solvency or the shareholder's consent, as the law protects the patrimonial integrity of the legal entity itself.
Shareholders privacy
PUBLIC PAYWALL
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De quoi s’agit-il ?How visible a company's shareholders and directors are: free public registry, paywalled, restricted or fully private. More privacy, but sometimes warier banks.
Source et informations complémentairesConservatória do Registo Comercial / Boletim Oficial
Directors privacy
PUBLIC PAYWALL
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De quoi s’agit-il ?How visible a company's shareholders and directors are: free public registry, paywalled, restricted or fully private. More privacy, but sometimes warier banks.
Source et informations complémentairesConservatória do Registo Comercial / Boletim Oficial
03.3 Incorporation cost
In this country, the most standard company form is called Sociedade por Quotas (Lda.) (Limited Liability Company). The costs below are for incorporating a company in its simplest form, for reference only.
State Registration Fee (Empresa no Dia)
USD 105
Name Reservation Certificate (Certidão de Admissibilidade)
USD 6
Chamber of Commerce Fee
USD 11
Professional Incorporation Service (Legal & Fiscal Representation)
USD 1,156
Total
USD 1,278

A good fit for a holding?

Long story short: NO.
Cape Verde has no treaty network at all, which buries the holding question, full stop.

Every dividend in or out eats the statutory withholding at full rate, and no domestic regime can patch a hole that sits on the source side. Don't park a holding here.

04.1 Substance & exemptions
Territorial · individuals
WORLDWIDE
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De quoi s’agit-il ?Does this country tax only local income (territorial) or everything you earn worldwide? Territorial means your foreign income stays untaxed here. Huge.
Source et informations complémentairesworldwide income taxation regardless of source
Territorial · corporates
WORLDWIDE
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Source et informations complémentairesworldwide corporate taxation
Participation exemption
NONE
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De quoi s’agit-il ?Can a holding company receive dividends from its subsidiaries tax-free? The cornerstone of any serious holding structure.
Source et informations complémentairesno dividend participation exemption regime
CFC rules
APPLY
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De quoi s’agit-il ?Anti-offshore rules: they tax you at home on your foreign company's profits, even if nothing was distributed. Where they exist, offshore setups get tricky.
Source et informations complémentairesIncome or profits generated by non-resident entities subject to a more favorable tax regime are attributed to resident taxpayers who hold, directly or indirectly, at least 25% of the capital, voting rights, or rights to income or assets of those entities.
04.2 Withholding tax · non-resident
WHT · dividends
0%
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De quoi s’agit-il ?The cut this country takes when it sends dividends, interest or royalties abroad. Tax treaties can shrink it; blacklists can inflate it.
Source et informations complémentairesnon-resident outbound
WHT · interest
20%
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Source et informations complémentairesnon-resident outbound
WHT · royalties
20%
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Source et informations complémentairesnon-resident outbound
Tax-haven WHT
0%
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Source et informations complémentairespenalty rate · blacklisted destinations
04.3 Treaty network
Treaties signed
0
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De quoi s’agit-il ?Deals with other countries to avoid double taxation and cut withholding taxes. The bigger the network, the easier your money moves across borders.
Source et informations complémentairesactive
Treaties pending
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Source et informations complémentairesin negotiation
Tax treaty network
origin · CV 0% > 0% no treaty
Inspect a country
Hover any country on the map to read its withholding-tax treaty with CV.
Country Status Dividends Interest Royalties
// no treaties match

Easy to come and go?

Long story short: SOME.
Cape Verde taxes your worldwide income while you're resident, but at least the exit is free: no exit tax on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

05.1 Exit & dual nationality
Exit tax
NONE
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De quoi s’agit-il ?What the country charges you for leaving: tax on your unrealized gains, as if you'd sold everything at the border. Here you'll see if it exists and when it triggers.
Source et informations complémentairesno triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
ALLOWED
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Source et informations complémentairesnaturalised citizens may keep their existing nationality
05.2 Citizenship paths
Residence
5 years
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Source et informations complémentairesavailable path to naturalisation
Marriage
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Source et informations complémentairesavailable path to naturalisation
Birth
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Source et informations complémentairesnot available
Descent
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Source et informations complémentairesnot available
Investment
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Source et informations complémentairesnot available

Is your money watched?

Long story short: PARTLY.
Cape Verde has signed most of the standard exchange frameworks and runs a public corporate registry. Your accounts get reported to your home tax office, and your shareholdings sit in the shop window.

Watched on both axes: not wall-to-wall, but don't come here for discretion.

Multilateral reporting frameworks 2/9 active · 2 pending
CRS
CARF
FATCA
2014
MLI
BEPS
MAAC
2020
GLOBAL FORUM
EOIR
CRYPTO TRAVEL RULE

Is it blacklisted?

Long story short: NO.
Cape Verde sits on no major blacklist, though it's outside the FATF club.

Some counterparties will run a bit of extra due diligence out of habit, but there's no formal stigma: you won't get hassled for dealing with it.

Blacklist exposure Clear everywhere
EMBARGO
un / us / eu sanctions
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list

Do you feel free there?

Long story short: YES.
Cape Verde scores high on press freedom (rank #30) and files crypto as a taxable but legitimate asset class: regulated, not banned, no CBDC brewing.

Free speech, free markets; just declare what you make.

08.1 Press freedom
Press freedom · RSF index
30/180
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De quoi s’agit-il ?The RSF world ranking of press freedom. A good proxy for censorship and civil liberties. The lower the rank, the freer the press.
Source et informations complémentairesscore 74 · ↑ 11 ranks year-on-year
Central bank digital currencyi
NONE
no announced CBDC program · no pilot · no retail or wholesale prototype on record

Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in Cape Verde. Stripe won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. Amazon doesn't deliver either.

Some secondary services run (3/11), but for an online business this is swimming against the current.

Accept payments 1/6 available
Stripe
card payments
PayPal
wallet payments
Adyen
enterprise psp
Mollie
eu payments
GoCardless
direct debit
Paddle
merchant of record
Bank and move money 1/3 available
Wise
multi-currency
Revolut
personal banking
Revolut Business
business banking
Buy and sell on Amazon 1/2 available
Amazon
consumer delivery
Amazon Seller
marketplace selling
SEE ALSO

Other jurisdictions worth comparing

Picked by similarity of strategic profile to Cape Verde. No editorial ranking — neighbours in the same scoring space.

PROFILE-ADJACENT Same shape, comparable overall friction.
NOTABLY MORE FAVORABLE Same family of strategies, higher total score.
NOTABLY LESS FAVORABLE Same family of strategies, lower total score.