# Cape Verde

 Country code: CV · Currency: CVE · Language: 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.

## 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**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 16.5 → 27.5% | progressive · 3 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 10,087 | 16.5% |
| 10,087 – 18,913 | 23.1% |
| 18,913 + | 27.5% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | exists here |  |
| Economic interest | does not exist here |  |
| Family centre | does not exist here |  |
| Habitual abode | exists here |  |
| Extended-stay test | does not exist here |  |

## 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**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 1% | flat · +20% gains on gambling, lottery, betting, prizes awarded in sweepstakes, or contests |
| Dividend tax | 10% | flat |
| Interest income | 10% | flat |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | 0.1% | flat |
| Inheritance system | NONE | no 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**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | UNREGULATED | Fallback 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 | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | NOT SIGNED | no 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**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 20% | flat · +2% fire brigade surcharge on tax due in the municipalities of Praia and Mindelo |
| VAT standard rate | 15% | 2 distinct tiers in force |

| VAT family | Category | Rate |
| --- | --- | --- |
| Energy | electricity | 8% |
| Utilities | water | 8% |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | CRIMINAL | criminal 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 | Conservatória do Registo Comercial / Boletim Oficial |
| Directors privacy | PUBLIC PAYWALL | Conservatória 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._

| Metric | Value | Detail |
| --- | --- | --- |
| 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**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | NONE | no dividend participation exemption regime |
| CFC rules | APPLY | Income 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**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 0% | non-resident outbound |
| WHT · interest | 20% | non-resident outbound |
| WHT · royalties | 20% | non-resident outbound |
| Tax-haven WHT | 0% | penalty rate · blacklisted destinations |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 0 | active |
| Treaties pending | — | in negotiation |

## 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**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | ALLOWED | naturalised citizens may keep their existing nationality |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 5 years | available path to naturalisation |
| Marriage | — | available path to naturalisation |
| Birth | — | not available |
| Descent | — | not available |
| Investment | — | not 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**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | None | — |
| CARF | None | — |
| FATCA | In force | 2014 |
| MLI | None | — |
| BEPS | Signed | — |
| MAAC | In force | 2020 |
| GLOBAL FORUM | Signed | — |
| EOIR | None | — |
| CRYPTO TRAVEL RULE | None | — |

## 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**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | 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**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 30/180 | score 74 · ↑ 11 ranks year-on-year |

Central bank digital currency

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**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Not available | wallet payments |
| Adyen | Not available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 1/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | 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.

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  NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

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  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

 [   Argentina AR  → ](https://stateless.sx/en/country/ar) [   Puerto Rico PR  → ](https://stateless.sx/en/country/pr) [   Guinea-Bissau GW  → ](https://stateless.sx/en/country/gw)