Cabo Verde

Double economic taxation relief

Taxpayers have the possibility of deducting 50% of the income from dividends in order to partially avoid economic double taxation.

Non-habitual residents tax regime

A taxpayer who has become a tax resident in Cabo Verde for a certain year and has not been taxed as resident in Cabo Verde for any of the previous five years may apply for the special tax regime for non-habitual tax residents.

In general terms, non-habitual residents are taxed at a flat rate of 10% in respect of employment income (Category A) and self-employment income (Category B) arising from 'high value-added activities' exercised in Cabo Verdean territory, as per the list published by the Cabo Verdean tax authorities.

A tax exemption applies on foreign-source income (e.g. property income, interest, and dividends), provided certain conditions are met.

A non-habitual resident acquires the right to be taxed as such during a ten-year period.

An application for the non-habitual residents tax regime has to be submitted electronically by 31 March, inclusive, of the year following the one in which the taxpayer became tax resident in Cabo Verde.

Tax benefits for emigrants

An exemption from taxation applies to income from corporate bonds and treasury certificates, publicly placed and listed in the stock exchange, subscribed and already held by Cabo Verde emigrants.

Incentives to professional activity carried out remotely outside the national territory 

An exemption from taxation applies, for a one-year period, on income earned by non-resident employees and self-employees who work remotely for entities with domicile or headquarters outside the territory of Cabo Verde. Proof of labour relationship is required. 

These workers are allowed the same incentives as foreseen for non-habitual residents. It is required that they remain in the country for a period of more than one year.