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Cabo Verde

We have a team of professionals to help you with all your business needs, so you can focus on business expansion in Cabo Verde — one of Africa’s most stable democracies and a growing hub for tourism, services, and renewable energy.

WHY CABO VERDE?

  • Political Stability: Cabo Verde is recognized as one of the most politically and socially stable countries in Africa, with strong democratic governance and rule of law.
  • Strategic Location: Situated in the Atlantic Ocean, Cabo Verde serves as a logistical and trade hub between Africa, Europe, and the Americas.
  • Tourism Hub: Tourism contributes nearly 25% of GDP, creating opportunities in hospitality, transport, food services, and eco-tourism.
  • Renewable Energy Potential: Cabo Verde has committed to reaching 100% renewable energy by 2030, creating significant scope for investment in solar, wind, and green hydrogen.
  • Diaspora and Investment Links: A large Cabo Verdean diaspora (mainly in the U.S. and Europe) drives remittances, real estate investment, and cultural exchanges.

ADVANTAGES

  • Favorable Investment Climate: Cabo Verde welcomes FDI, offering equal treatment to domestic and foreign investors.
  • Special Economic Zones (SEZs): Investors in SEZs enjoy tax holidays, customs exemptions, and land leasing incentives.
  • Tourism Growth: The government prioritizes tourism expansion, with incentives for hotel construction, eco-resorts, and cruise ports.
  • Free Repatriation of Profits: Foreign investors can repatriate capital and profits freely under the Investment Law.
  • Stable Currency Peg: The Cabo Verdean escudo (CVE) is pegged to the Euro, ensuring exchange rate stability and investor confidence.

SIMPLE TAX REGIME

  • Corporate Income Tax (CIT): Standard rate of 22%; reduced to 15% in Special Economic Zones.
  • Value-Added Tax (VAT): Standard rate 15%, with exemptions for basic goods, health, education, and exports (zero-rated).
  • Personal Income Tax (PIT): Progressive rates from 16.5% to 27.5%.
  • Withholding Taxes:
    • Dividends – 10% (can be reduced under treaties)
    • Interest – 20%
    • Royalties – 20%
  • Social Security Contributions: Employer – 15%, Employee – 8.5% of gross salary.

TAX SLABS

INCOME TAX RATES (Residents)

Annual Income (CVE)

Rate (%)

Up to 700,000

16.5%

700,001 – 1,500,000

23.1%

Above 1,500,000

27.5%

 

Unified Income Tax Rates (Non-Residents)

  • Non-residents are generally subject to a flat 20% withholding tax on Cabo Verde-sourced income.
  • Certain exemptions and treaty reductions may apply.

 

CORPORATE TAX RATES

Category

Rate (%)

Standard Corporate Income Tax

22%

Special Economic Zones (SEZs)

15%

Agricultural & Fishing Co-ops

10%

Free Zone Companies (export-based)

0–5% (for first 5–10 years)

CABO VERDE COMPANIES

  • Legal Forms:
    • Sociedadepor Quotas (Lda.) – Limited liability company, most common for SMEs.
    • SociedadeAnónima (SA) – Public limited company, suitable for large enterprises.
    • Branch of Foreign Company – Allowed and subject to same taxation as resident companies.
  • Business Environment:
    • Cabo Verde ranks among the top African countries in ease of doing business, particularly in starting a business and protecting minority investors.
    • Business registration is streamlined via the “Casa do Cidadão” one-stop-shop, allowing incorporation in as little as 1–2 days.
  • Investment Incentives:
    • Up to 10 years tax holiday for qualified investments in tourism, renewable energy, IT, and infrastructure.
    • Customs exemptions for import of equipment and raw materials.
    • Employment incentives for companies hiring and training local staff.

SUMMARY

Cabo Verde offers a compelling mix of political stability, Euro-pegged currency security, attractive tax incentives, and strong growth in tourism and renewable energy. Its SEZs and one-stop-shop registration system make it an investor-friendly destination. While the domestic market is small (population ~600,000), its location and openness to global trade create outsized opportunities for investors targeting Africa, Europe, and transatlantic markets.

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About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.

About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.