Cabo Verde

Corporate - Significant developments

Last reviewed - 15 July 2025

January 2026

Real Estate Taxes Reform: New Tax Codes come into force

In the context of the reform of property taxation, the Real Estate Ownership (“Imposto Sobre a Propriedade de Imóveis” or IPI) Code was approved and published in the Official Gazette under Law No. 55/X/2025 of 6 June, and the Real Estate Transfer Tax (“Imposto Sobre a Transmissão de Imóveis” or ITI) Code under Law No. 54/X/2025 of 6 June.

Both came into force on 1 January 2026 and introduce significant changes to property taxation, repealing the Single Property Tax Code (“Imposto Único sobre o Património” or IUP).

From the outset, there is a clear separation between taxation on property ownership and other related matters, and taxation on its transfer.

More detail can be found in the PwC Cabo Verde Tax Flash.

December 2025

2026 State Budget published

Law No. 69/X/2025, of 31 December, published in the Official Gazette, approves the State Budget for 2026 (SB 2026). While the provisions on tax matters already included in the SB 2026 draft law have, in general, been approved, a new provision has reduced to the general Corporate Income Tax rate is reduced to 20% (previously 21%).

More detail can be found in the PwC Cabo Verde Tax Flash.

October 2025

2026 State Budget Law proposal

The 2026 State Budget Law Proposal was submitted to the Parliament on 1 October 2025. Highlights to the most relevant tax measures being proposed include the following:

Pillar Two (Qualified Global Minimum Tax): 15% minimum tax for in‑scope multinational enterprises (MNEs)/large domestic groups (≥ 750 million euros [EUR]), applied to Cabo Verde entities via standalone rules.
Withholding tax (WHT) relief for aircraft leases. Exempts rental payments to non-resident lessors for public inter‑island service where operator is AAC‑licensed and filings are made with the tax authority.
Carbon tax: Carbon tax continues in 2026. National greenhouse gas (GHG) emissions system to be established in 2026.
Incentives maintained in 2026: Continuation of existing regimes (research and development [R&D], startups, reinvestment, financing, hiring, electric mobility, sectoral/import measures, energy/water relief, etc.).

More detail can be found in the PwC Cabo Verde Tax Flash.