Starting a business in Cape Verde requires a comprehensive understanding of the sectoral regulations governing the local economy. This report aims to provide a detailed overview of the main legal and regulatory aspects that entrepreneurs should consider before establishing their operations in the country. Cape Verde, with an evolving business environment, offers diverse opportunities, but also presents regulatory challenges that need to be carefully navigated.
The recently enacted State Budget for 2025 introduces several tax measures and incentives that could directly impact new businesses. Among the new measures is the introduction of a carbon taxThis is intended to finance actions to mitigate and adapt to climate change. In addition, the government is proposing a minimum tax on import duties, reflecting an effort to rationalise tax benefits.
The tax incentives maintained for 2025 include support for young start-ups, reinvestment of profits and company financing, as well as specific exemptions for imports carried out by local authorities and for remote professional activities. These incentives are crucial to fostering economic development and innovation in the country.
Cape Verde's budget strategy for 2025 emphasises cohesion, sustainability and inclusion, with a particular focus on improving technological connectivity and the digital transition. The government expects these initiatives to contribute to GDP growth of up to 5.3% in 2025, despite global challenges. A new Electronic Official Bulletin platform was also launched to ensure greater transparency and accessibility in the publication of normative acts, facilitating access to legislative information for citizens and companies.
For entrepreneurs, it is essential to be aware of the licensing requirements and permits needed to operate in Cape Verde. The country's business licensing website offers a detailed list of all the licences required, as well as an overview of economic regulations. It is recommended that new entrepreneurs take the time to research and prepare for the licensing process, which can be complex and time-consuming.
This report is intended to serve as an essential guide for anyone interested in exploring business opportunities in Cape Verde, providing a solid base of knowledge about sector regulations and current economic conditions.
Contents
O primeiro passo para estabelecer um negócio em Cabo Verde é o registo da empresa junto às autoridades governamentais competentes, tipicamente o Registo Comercial. Este processo é essencial para formalizar a existência da entidade empresarial dentro do quadro legal cabo-verdiano. A inscrição no Registo Comercial é um requisito fundamental que assegura a legitimidade operacional e a conformidade legal das empresas.
In addition to registration, it is necessary to obtain specific business licences that vary according to the type of business activity. These licences are issued by different government bodies, depending on the nature of the business, and can include specific licences for sectors such as tourism, food trade and transport. (Cape Verdean Lawyers)
Companies operating in the retail sector in Cape Verde must fulfil specific licensing requirements that guarantee compliance with health and safety standards. This type of licensing is crucial to protecting consumers and ensuring fair business practices. The licensing process can include obtaining import and export permits, depending on the products traded. (CCS - Commercial Licensing)
Para as indústrias de manufatura, o licenciamento envolve a conformidade com normas ambientais e de segurança no trabalho. As empresas devem obter licenças que assegurem que as suas operações não prejudicam o meio ambiente e que os locais de trabalho são seguros para os funcionários. Este tipo de licenciamento é frequentemente mais complexo devido à necessidade de avaliações de impacto ambiental e inspeções regulares.
The financial sector in Cape Verde is strictly regulated to guarantee economic stability and protect consumers. Financial institutions must obtain specific licences that prove their ability to operate safely and effectively. This licensing process includes background checks on key executives and an assessment of the institution's financial soundness. (Generis Online)
Compliance with Cape Verde's licensing regulations is vital to avoid significant risks, such as closures and legal repercussions. Companies operating without the necessary licences face severe penalties, including fines and the suspension of their activities. Adherence to the legal framework not only protects the company from sanctions, but also contributes to its reputation and long-term financial health. (Generis Online)
Entrepreneurs in Cape Verde have access to various resources that can help with the licensing process. The website of the General Inspection of Real Estate and Construction, for example, offers detailed information on the legislation applicable to the construction and real estate sectors, allowing operators to carry out simulations to determine the costs associated with complying with legal formalities. (Government of Cape Verde)
In addition, the Sotavento Chamber of Commerce provides support services for internationalisation and commercial licensing, offering essential documentation for commercial activity, such as importer, exporter and commercial agent certificates. (CCS - Commercial Licensing)
Each sector in Cape Verde faces unique challenges when it comes to licensing. For example, the tourism sector, which is one of the pillars of the Cape Verdean economy, requires specific licences that ensure the quality of the services provided and the safety of tourists. The technology sector, on the other hand, faces challenges related to data protection and compliance with international cyber security standards. (Cape Verdean Lawyers)
To overcome these challenges, it is advisable for companies to work with experienced legal and tax advisors who can help navigate the complexities of the licensing process. Proper financial planning and market research are also essential to ensure that the licensing process is efficient and problem-free. (S&D Consultancy Cape Verde)
In short, understanding and complying with Cape Verde's licensing requirements is a crucial step for any entrepreneur wishing to establish a business in the archipelago. This process not only guarantees legal compliance, but also positions the company for success and sustainable growth in the Cape Verdean market.
Cape Verde offers a variety of tax incentives designed to attract investment and foster economic growth. These incentives are particularly advantageous for companies operating in strategic sectors such as tourism, renewable energies and information and communication technologies. The favourable tax regimes include tax exemptions, rate reductions and specific deductions that allow companies to reinvest more capital in their development (S&D Consultancy).
Cape Verdean legislation provides for significant tax credits for investments in industrial activities. According to the Investment Law, eligible investments can benefit from a tax credit of up to 50% of the amount invested. This incentive is a powerful tool for reducing the tax burden on companies, encouraging expansion and innovation in the industrial sector (PwC Portugal).
The Cape Verdean government has implemented specific tax incentives for companies that create new jobs, especially in less developed areas. These incentives include tax deductions ranging from CVE 26,000 to CVE 35,000 for each new job created. This policy aims to promote economic decentralisation and regional development, offering benefits to both companies and local communities (Tax Summaries PwC).
Companies that establish themselves in the Cape Verde International Business Centre (CIN) can benefit from significant tax exemptions and reductions. These include exemption from taxation on dividends and interest for partners of licensed entities, as well as reduced rates of Corporate Income Tax (IRPC) until 2030. This initiative aims to make Cape Verde an attractive destination for international business and increase the country's competitiveness in the global market (PwC Portugal).
The Cape Verdean government, in collaboration with international institutions, has created several development funds aimed at supporting innovation and business growth. One example is the Business Development Fund, which offers financing for innovative projects with growth potential and positive economic impact. This fund is especially focused on supporting small and medium-sized enterprises (SMEs) that face difficulties in accessing traditional financing (S&D Consultancy).
To promote the internationalisation of Cape Verdean companies, there is a scheme that offers tax and financial incentives for investment projects. These benefits include a reduction of up to 50% in the Corporate Income Tax (CIT) rate and exemption from CIT on income earned by qualified expatriate employees. This policy aims to facilitate the expansion of Cape Verdean companies into international markets, increasing their competitiveness and global reach (Tax Summaries PwC).
Cape Verde has also introduced tax incentives to support companies in recovery or insolvency processes. These include tax benefits in terms of IRPS, IRPC, Stamp Duty and Single Property Tax. The implementation of these incentives is conditional on the entry into force of the Business Recovery and Insolvency Code, reflecting the government's commitment to supporting the sustainability and recovery of companies in difficulty (PwC Portugal).
The Cape Verdean government promotes public-private partnerships (PPPs) as a strategy to leverage private sector resources and expertise in projects of public interest. These partnerships are often accompanied by tax incentives and government support, facilitating companies' access to international markets and promoting the development of essential infrastructure. In addition, training and consultancy programmes are offered to help companies maximise their potential for growth and innovation (S&D Consultancy).
Tax incentives and benefits in Cape Verde are designed to create a favourable business environment, promoting investment, innovation and economic growth. With a variety of tax regimes and support programmes, the country offers significant opportunities for companies looking to expand or establish operations in the region. These incentives not only reduce the tax burden, but also encourage job creation and regional development, contributing to a robust and dynamic business sector.
One of the most significant tax measures introduced in Cape Verde's 2025 State Budget is the reduction in the Corporate Income Tax (IRC) rate. This measure aims to ease the tax burden on companies and stimulate economic growth. The CIT rate has been reduced from 21% to 20%, with an even lower rate of 16% applied to the first 50,000 euros of taxable income for Small and Medium-sized Enterprises (SMEs) (S&D Consultancy). This reduction is designed to increase the competitiveness of Cape Verdean companies by encouraging both local and foreign investment.
The Cape Verdean government continues to promote innovation and business development through specific tax incentives. Companies that invest in research and development projects can benefit from significant tax deductions. This incentive is crucial to fostering competitiveness in the global market, allowing Cape Verdean companies to develop new products and services that can compete internationally (Government of Cape Verde).
The 2025 State Budget also provides for import exemptions for local authorities and incentives to import public passenger transport vehicles, taxis and heavy goods vehicles for tourism. These measures aim to reduce the operating costs of companies that depend on imports and improve the transport infrastructure, which is essential for economic growth and social inclusion.
In line with sustainability goals, the government has introduced a carbon tax to incentivise greener business practices. This measure aims not only to increase public revenue, but also to promote the transition to a more sustainable economy. Companies that adopt sustainable practices can benefit from tax incentives, including income tax deductions for renewable energy projects (S&D Consultancy).
Despite the opportunities created by the new tax measures, companies in Cape Verde should be aware of the associated challenges and risks. Global economic volatility remains a concern, with fluctuations in international markets that can negatively impact exports and tourism in Cape Verde. In addition, dependence on imports for essential goods can result in high costs, especially if there are currency fluctuations or interruptions in supply chains (Balai News).
Fiscal reforms are positioning Cape Verde as a more competitive and attractive jurisdiction for international investment. The government's commitment to reducing public debt ratios and increasing tax revenue, while at the same time promoting measures to attract investment, is a strategic step to highlight the country as a pole of development and competitiveness in the African region (Ministry of Finance).
The 2025 State Budget identifies priority sectors for investment and development, which are fundamental for economic diversification and job creation. These include renewable energies, information technology and tourism. Companies that invest in these sectors can benefit from tax incentives and other facilities, thus promoting sustainable economic growth (CV Consultancy).
The Cape Verdean government is betting heavily on the transition to renewable energies and the digitalisation of services. This commitment aims to make the country more resilient and competitive, offering significant opportunities for companies in the technology and energy sectors. However, the digital transformation in tax and customs administration has posed significant challenges for companies, with many finding it difficult to keep up with the pace of change (Balai News).
The tax reforms implemented in Cape Verde are a reflection of the government's commitment to promoting a more favourable and competitive business environment. By reducing the tax burden and incentivising innovation and investment, Cape Verde is positioning itself as an attractive destination for international entrepreneurs and investors. However, companies must remain vigilant to global economic challenges and adapt to changes in order to maximise the opportunities offered by this new fiscal framework.
The research report emphasises the crucial importance of complying with licensing requirements and sector regulations for starting a business in Cape Verde. Commercial registration and obtaining specific licences are fundamental steps in ensuring the legitimacy and legal compliance of companies. Sectors such as retail, manufacturing and financial services have distinct licensing requirements that aim to protect consumers, ensure safe practices and promote economic stability. Non-compliance can result in severe penalties, underlining the need for specialised legal and tax assistance to navigate regulatory complexities (Generis Online).
In addition, Cape Verde offers a series of tax incentives designed to attract investment and foster economic growth, especially in strategic sectors such as tourism, renewable energies and technology. Recent tax reforms, including a reduction in the corporate income tax rate and incentives for innovation, aim to increase the competitiveness of Cape Verdean companies and attract foreign investment. However, companies should be aware of the associated challenges, such as global economic volatility and dependence on imports. The government's commitment to promoting a favourable business environment, coupled with tax incentives and public-private partnerships, positions Cape Verde as an attractive destination for investors, but requires continuous adaptation to changes in order to maximise the opportunities offered (PwC Portugal).
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