Cape Verde
Western Africa • UTC-1 • Atlantic/Cape_VerdeCape Verdean Income Tax System
Cape Verde employs a progressive tax system for personal income, with corporate taxes and VAT also in place. The system is designed to support economic growth while ensuring fair taxation.
Income Tax
11%–27.5%
Progressive rates based on income
Corporate Tax
25%
Standard corporate tax rate
VAT / GST
15%
Standard VAT rate
Nomad Visa
Available
Digital Nomad Visa
Tax System Overview
Cape Verde's tax system is progressive, taxing residents on worldwide income and non-residents on Cape Verdean-source income. It includes personal income tax, corporate tax, and VAT.
System Type
Progressive personal income tax
Resident Taxation
Residents are taxed on their worldwide income.
Non-Resident Taxation
Non-residents are taxed only on income sourced within Cape Verde.
Tax Year
January 1 – December 31
Income Tax Bands
Cape Verde's progressive income tax bands based on annual taxable income in CVE (2025).
Tax Treaty
Double Taxation Agreements help avoid double taxation on income earned in multiple countries.
Portugal
Treaty ActiveThe treaty between Cape Verde and Portugal prevents double taxation and reduces withholding taxes on dividends, interest, and royalties.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
- Clarifies tax residency to determine where taxes should be paid.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
Portugal
Agreement ActiveCape Verde and Portugal have a social security totalization agreement that prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for Cape Verde–Portugal workers.
- Allows workers who split careers between the two countries to combine contribution periods.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
25% standard rate with potential incentives for certain sectors
VAT Registration
Mandatory for businesses with annual turnover exceeding CVE 3,000,000.
Freelancer Rules
Freelancers must register for tax and may benefit from simplified tax regimes.
Crypto Policy
Cryptocurrency gains are subject to capital gains tax.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- No wealth tax on global assets
- Potential tax incentives for remote workers
Filing Roadmap
Register for a Tax Identification Number
Obtain a tax identification number from the local tax office to begin the tax filing process.
Gather Income Documentation
Collect all necessary documents, including income statements and proof of deductions.
Complete the Tax Return Form
Fill out the appropriate tax return form, ensuring all income and deductions are accurately reported.
Submit the Tax Return
File the completed tax return with the tax authorities by the March 31 deadline.
Pay Any Taxes Owed
Ensure any taxes owed are paid by the deadline to avoid penalties.