Cabo Verde

Corporate - Significant developments

Last reviewed - 15 July 2025

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.