Cabo Verde

October 2025

2026 State Budget Law proposal

The 2026 State Budget Law Proposal was submitted to the Parliament on 1 October 2024. A highlight to the most relevant tax measures being proposed:

• Pillar Two (Qualified Global Minimum Tax). 15% minimum tax for in‑scope MNEs/large domestic groups (≥ EUR 750m), applied to Cabo Verde entities via standalone rules.

• WHT relief - aircraft leases. Exempts rental payments to nonresident lessors for public inter‑island service where operator is AAC‑licensed and filings made with the Tax Authority.

• Carbon Tax. Carbon tax continues in 2026; national GHG emissions system to be established in 2026.

• Incentives maintained in 2026. Continuation of existing regimes (R&D, startups, reinvestment, financing, hiring, electric mobility, sectoral/import measures, energy/water relief, etc).

• Housing access. Incentives for controlled‑price housing will be proposed; expanded individual relief (fees and stamp tax exemptions, property tax relief, higher PIT cap for rent/financing).

More detail can be found here - PwC Cabo Verde Tax Flash.