The tax system of Cabo Verde

Cabo Verde tax rates in 2026: at a glance

Cabo Verde taxes individuals on a scale up to 27.5%, but investments are taxed lightly, and new residents can get a special 10% regime for 7 years. Here are the main taxes in one table.

The escudo is pegged to the euro. Dollar amounts are at about 98 escudos to the dollar, rounded up.

Compare taxes in 146 countries: relocation taxes 2026

What changed in 2026

• Corporate tax cut from 21% to 20% from 1 January 2026.
• New property taxes. The former single property tax has been abolished. It is replaced by an annual ownership tax of 0.1% of assessed value, 0.15% for land, and a 1% transfer tax on purchase.
• A shorter special regime for new residents. It now lasts 7 consecutive years instead of 10.
• Income from securities. Interest and other income on bonds is taxed at 10% at source.

Who pays tax and on what

Individuals who are tax residents of Cabo Verde are taxed on their worldwide income.

Non-resident individuals pay personal income tax only on income from sources in Cabo Verde, at flat tax rates.

Resident and non-resident

Cabo Verde tax residency: 183 days and the 31 December rule

Cabo Verde, also known as Cape Verde, makes you resident in two ways, and the second works in a single day. Article 21 of the Personal Income Tax Code, Law 78/VIII/2014, requires more than 183 days in any 12 months. Or a home that serves as your usual residence on 31 December.

A resident pays tax on worldwide income, a non-resident only on local income. Investments are taxed lightly: capital gains on property and shares are taxed at 1%, dividends at 10%. New Year plans on the islands are worth checking against more than the weather forecast: the home you have on 31 December decides your status for the whole year. The calculator below counts days in any 12 months.

Mistakes cost more: the 31 December rule works even without 183 days, and if two countries claim you and no double tax treaty applies, the same income can be taxed twice. Murblz support removes these risks: we count days, assess your home, obtain the tax residency certificate and apply treaties where they are in force. We guarantee professional work and a transparent process, and in most cases a result on the first filing.

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Personal income tax: rates

Annual income is taxed on a progressive scale, and the first 220,000 escudos (about $2,300) of net income a year are tax-free.

Employers withhold tax from salary every month: 15% on salaries up to 80,000 escudos (about $820), 21% up to 150,000 escudos (about $1,600) and 25% above, minus a fixed amount. Non-residents pay at the same rates, but only on income from Cabo Verde.

Investment income

The low rate on capital gains makes Cabo Verde convenient for buyers who expect property prices to rise: the tax on sale is barely noticeable.

A special regime for new residents

A person who becomes tax resident in Cabo Verde and was not resident in any of the previous five years can apply for a special regime for 7 consecutive years.

• Earnings in the country. Salary and self-employment income from high value-added activities on the tax authority's list are taxed at a flat 10% instead of the scale up to 27.5%.
• Foreign income. Rent, interest and dividends from other countries may be exempt in Cabo Verde if the conditions of the regime are met.
• Application deadline. It must be filed online by 31 March of the year after the one in which you became resident. Missing it means the ordinary scale.

Example: ordinary scale and special regime

A specialist with income of 3 million escudos a year (about $31,000) in an activity on the high value-added list.

The difference is about $3,900 a year, more than $27,000 over the 7 years of the regime. If the specialist also receives dividends or rent from abroad, under the conditions of the regime they are not taxed in Cabo Verde at all.

Remote workers

A participant in the government remote work programme receives a temporary residence permit but does not become tax resident. Their income from a foreign employer or clients is exempt from Cabo Verde income tax. Obligations to the country where they remain resident still apply. More on the Cabo Verde remote work visa page.

Companies and business

• Corporate income tax is 20%. In Praia and Mindelo a 2% fire brigade surcharge on the tax is added, 20.4% in total.
• Micro and small companies can pay a single 4% tax on turnover every quarter. It replaces corporate income tax, the fire brigade surcharge, VAT and social security contributions.
• VAT is 15%.
• Social security contributions are 24.5% of salary: 8.5% paid by the employee and 16% by the employer. They are due by the 15th of the following month.

Property: buying, owning, selling

The transfer tax is paid at the municipality within three working days and before the deal is registered. The assessed value for the ownership tax is set by municipal commissions based on area, location, condition and construction cost. For a flat worth 5 million escudos (about $52,000) the transfer tax is 50,000 escudos, and the annual ownership tax no more than 5,000 escudos.

Deadlines and reporting

The tax year is the calendar year. Employers withhold income tax from salary monthly, and tax on dividends, interest and rent is withheld at source. Companies file an annual corporate tax return for the previous year and make advance payments during the year, while micro and small companies on the single tax pay it every quarter.

Common mistakes

• Forgetting the 31 December rule. A home that is your usual residence on that day makes you resident even without 183 days.
• Missing the special regime application. The deadline is 31 March of the following year; after that the ordinary scale applies.
• Using old rates. Corporate tax is 20% from 2026, and the single property tax has been replaced by two new ones.
• Ignoring the country of previous residency. Without a double tax treaty the same income can be taxed twice.

How we help

We count days and check the 31 December rule, file for the special regime for new residents on time, and support property purchases and company registration. We obtain a tax residency certificate and apply treaties where they are in force.

Related pages: Cabo Verde residence permit, remote work visa, personal account, business account and investment property.

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