Cape Verde

Last update: 2026-06-09
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.
Personal income
16.5 → 27.5%
progressive
Corporate
20%
flat
Capital gains
1%
flat
VAT (standard)
15%
standard rate
i 5.5 VERY LOW TAX
i 4.2 PRIVACY GRADE
i 2 CRYPTO HAVEN
i 2 EASY CITIZENSHIP
i 1.8 HOLDING
i 1.7 DIVIDEND PIPELINE
VERYLOW TAX 5.5/10 HOLDING 1.8/10 DIVIDENDPIPELINE 1.7/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 4.2/10 EASYCITIZENSHIP 2/10
01/08

Will Cape Verde tax what you earn?

income tax tax residency territorial system

YES, A LOT. Personal income is taxed heavily in Cape Verde (top marginal rate 27.5%), but the residency test is unusually permissive. The bill is steep; the trick is not to trip into resident status without meaning to.

Personal income taxi
16.5 → 27.5%
progressive · 3 brackets
Income simulatori
Income
Tax due
Effective rate
all-in
Marginal rate
Tax residence testi
183days
183-day rule
Economic interest
Family centre
Habitual abode
Extended-stay test
Just one rule above is enough to make you tax-resident here.
02/08

Will Cape Verde tax what you own?

capital gains wealth tax inheritance dividends interest

YES, BUT LIGHTLY. Capital gains are taxed at a low 1% in Cape Verde, but the country also applies an annual wealth tax (top rate 0.1%). Over a long holding period, the recurring charge can outweigh the realisation tax entirely.

Capital gainsi
1%
flat · +20% applies to gains on gambling, lottery, betting, prizes awarded in sweepstakes, or contests
Dividend taxi
10%
flat
Interest incomei
10%
flat
Wealth taxi
0.1%
flat
Crypto · tax regimei
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-cryptoi
TAXABLE
each swap counts as a disposal — gains realised at every trade
FATF travel rulei
NOT SIGNED
no information-sharing obligation on VASP transfers
Inheritance systemi
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.
03/08

Is it easy to run a company in Cape Verde?

corporate tax criminal liability public registry VAT IP box

YES, BUT TAXED. Corporate tax in Cape Verde is 20%, but the tax isn't where this country hurts. It treats misuse of corporate assets as a criminal offense (the textbook case is the French abus de biens sociaux doctrine: using your own company's money for personal purposes can trigger prosecution, even as sole shareholder, because the company is a distinct legal person and your consent doesn't waive the offense). And it runs public corporate registries: your name as shareholder is queryable by anyone with a browser. For an owner-operator, those two combined are the real friction. Heavier than the rate, and far less negotiable. Running a clean structure is straightforward; running it casually isn't.

Corporate taxi
20%
flat · +2% Fire brigade surcharge (Taxa de Incêndio) applied in the municipalities of Praia (Island of Santiago) and Mindelo (Island of São Vicente)
IP Box · Patent Boxi
NONE
no IP regime · IP income taxed under standard corporate rules
Misuse of corporate assetsi
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 privacyi
PUBLIC PAYWALL
Conservatória do Registo Comercial / Boletim Oficial
Directors privacyi
PUBLIC PAYWALL
Conservatória do Registo Comercial / Boletim Oficial
Incorporation costi
Limited Liability Company
Sociedade por Quotas (Lda.)
State Registration Fee (Empresa no Dia) USD 105
Name Reservation Certificate (Certidão de Admissibilidade) USD 6
Chamber of Commerce Fee USD 10
Professional Incorporation Service (Legal & Fiscal Representation) USD 1,154
Total USD 1,276
VAT standard ratei
15%
3 distinct tiers in force
0% 8% 15%
Food & drink
0%
food
Transport
0%
public transit
0%
air
Hospitality
15%
hotels
15%
restaurants
15%
takeaway
Health
0%
pharma
0%
medical dev.
Energy
8%
electricity
Utilities
8%
water
0%
waste
Digital & telecom
15%
digital
15%
telecom
Construction
15%
construction
Personal services
0%
funeral
Finance
0%
insurance
0%
financial svc.
04/08

Is Cape Verde good for your holding company?

treaty network participation exemption withholding

NO. Cape Verde doesn't carry a treaty network, which makes it unsuitable as a holding jurisdiction. Any dividend flowing in or out faces full statutory withholding, and no domestic participation exemption can compensate for missing relief on the source side.

Territorial systemi
Individuals
WORLDWIDE
Corporates
WORLDWIDE
Individuals: worldwide income taxation regardless of source. Corporates: worldwide.
Participation exemptioni
NONE
no dividend participation exemption regime
CFC rulesi
APPLY
Cabo Verde taxes resident companies on profits of foreign entities in low-tax jurisdictions if they hold at least 25% of the capital, voting, or rights to income or assets, whether directly or indirectly.
WHT · dividendsi
0%
non-resident outbound
WHT · interest
20%
non-resident outbound
WHT · royalties
20%
non-resident outbound
Tax-haven WHT
no punitive rate on record
Treaties signedi
0
active
Treaties pending
in negotiation
Tax treaty networki
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
05/08

What does it cost to come and go from Cape Verde?

exit tax territorial system dual citizenship

SOME. Cape Verde taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.

Exit taxi
NONE
no triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
ALLOWED
naturalised citizens may keep their existing nationality
Citizenship paths
Residence
Marriage
Birth
Descent
Investment
06/08

Will Cape Verde protect your privacy?

info exchange corporate registries

PARTLY. Cape Verde has signed most of the standard exchange frameworks and operates a public corporate registry. Financial accounts are reported to your home tax authority, and your shareholdings are visible to anyone. Privacy is shallow on both axes.

Multilateral reporting frameworks 2/10 active · 2 pending
CRS
CARF
FATCA
2014
MLI
BEPS
MAAC
2020
GLOBAL FORUM
EOIR
CRYPTO-CARF
CRYPTO TRAVEL RULE
07/08

Is Cape Verde itself a liability?

blacklists FATF standing

NO. Cape Verde carries no entries on any major blacklist, though it sits outside FATF membership. Counterparties may apply light extra due diligence, but no formal stigma attaches to dealing with it.

Blacklist exposure Clear everywhere
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list
08/08

Will you feel free in Cape Verde?

press freedom crypto CBDC EU

YES. Cape Verde scores high on press freedom (rank #30) and treats crypto as a taxable but legitimate asset class: regulated, not banned, and no CBDC in the pipeline. Free speech and free markets, with tax compliance.

Press freedom · RSF indexi
30/180
score 74 · ↑ 11 ranks year-on-year
Central bank digital currencyi
NONE
no announced CBDC program · no pilot · no retail or wholesale prototype on record
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.