The Cape Verdean tax system is a central element in the strategy for attracting foreign investment and enhancing the value of the diaspora. This article aims to clearly and thoroughly decipher the tax mechanisms applicable to emigrants and international investors, and to present strategies for optimising current taxes. <\/p>\n\n\n\n
Cape Verde establishes the tax system through the General Directorate of Contributions and Taxes (DGCI). The national tax policy recognises the weight of the diaspora, whose remittances account for a significant portion of GDP, and simulates an environment of incentives for repatriation and investment. The central legal instruments include the Code of Fiscal Benefits (CBF) and investment laws, which grant special regimes for foreign investors and emigrants. (Ministry of Finance<\/a>)<\/p>\n\n\n\n Any non-resident investor must obtain a Tax Identification Number (NIF) in order to operate legally in Cape Verde. In addition, when generating income or owning assets in the country, they must appoint a resident tax representative. This figure is responsible for receiving tax notices, filing returns and ensuring local compliance. Failure to choose this representative carries a high risk of penalisation.<\/p>\n\n\n\n Law 82\/VIII\/2015 approved the new IRPC code in Cape Verde, repealing previous regimes. Check it out here<\/a> In the IRPS system, two main methods apply:<\/p>\n\n\n\n The progressive rates vary according to the bracket and can be between 16.5 % and 27.5 %. (LAW NO. 78 \/VIII\/2014<\/a>) The standard VAT rate is 15 %<\/strong>. Transactions and imports linked to tax benefit schemes may be exempt under Article 12 of the VAT Code. (Portal Comercio)<\/a> The Emigrant Investor Statute provides for IRPC exemption on dividends and distributed profits<\/strong> in authorised investments. Consular Portal<\/a> The exemption on the import of materials represents a real advantage for those who want to build or renovate their first home. This exemption significantly reduces the cost of construction or rehabilitation - but requires extreme attention to the documents that support eligibility.<\/p>\n\n\n\n On their final return, the emigrant investor enjoys customs exemptions on personal belongings, furniture and even a car, as provided for in the provisions of the Investor Statute. Consular Portal<\/a><\/p>\n\n\n\n Projects considered to be of national interest can sign agreements with the state, guaranteeing exemptions or reductions on IRPC, Stamp Duty, IUP and customs taxes for periods of up to 10 years<\/strong>. The CIN-CV offers reduced IRPC rates to licensed entities operating in international services, industry or international trade. Resident vs. Non-Resident for Tax Purposes<\/h3>\n\n\n\n
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This distinction is decisive for choosing withholding tax regimes and for applying Double Taxation Conventions (DTTs).<\/li>\n<\/ul>\n\n\n\nTIN and Tax Representative Required<\/h3>\n\n\n\n
II. Income Taxation: IRPC and IRPS<\/h2>\n\n\n\n
Corporate Income Tax (IRPC)<\/h3>\n\n\n\n
The nominal base rate is 25 %<\/strong> for entities with organised accounts. (Cape Verde Tax System)<\/a>
For foreign investors or high-impact projects, it is possible to negotiate contractual benefits<\/strong>, These allow fee reductions or exemptions for up to 10 years. (Summary of the main tax incentives)<\/a><\/p>\n\n\n\nSingle Personal Income Tax (IRPS)<\/h3>\n\n\n\n
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For non-residents, IRPS applies only to Cape Verdean source income, often via withholding tax (WHT). <\/p>\n\n\n\nIII. Indirect and Property Taxes<\/h2>\n\n\n\n
VAT and Special Regimes (REMPE)<\/h3>\n\n\n\n
O REMPE (Special Regime for Micro and Small Enterprises)<\/strong> offers a simplified regime: those who join don't charge traditional VAT, but a special unified tax. However, invoices issued by REMPE companies do not generate the right to deduct VAT for customers - which may discourage B2B companies from hiring REMPE suppliers. (PwC)<\/a><\/p>\n\n\n\nIUP, IMT and Stamp Duty<\/h3>\n\n\n\n
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Tax Opportunities for the Diaspora (Emigrant-Investor)<\/h2>\n\n\n\n
Incentives for Capital Repatriation and Income<\/h3>\n\n\n\n
In addition, emigrant enterprises can import materials for building or renovating their first home free of VAT, customs duties and ICE (Special Consumption Tax), provided they fulfil the legal conditions. Consular Portal<\/a><\/p>\n\n\n\nConstruction or Acquisition of Own Housing<\/h3>\n\n\n\n
Final Return and Other Benefits<\/h3>\n\n\n\n
Special Regimes for Corporate Investors<\/h2>\n\n\n\n
5.1 Contractual Benefits (Establishment Convention)<\/h3>\n\n\n\n
To access this scheme, minimum investment and job creation are generally required, varying according to geographical location (less stringent criteria apply in less developed municipalities). <\/p>\n\n\n\n5.2 International Business Centre (CIN-CV)<\/h3>\n\n\n\n
However, sectors such as tourism, real estate, construction, banking and insurance are excluded<\/strong> the scope of the RCN. UCP Repository<\/a>
In addition, resident companies can deduct up to 40 % of eligible expenditure on research and development (R&D)<\/strong> of the IRPC collection. (Law no. 102\/VIII\/2016)<\/a><\/p>\n\n\n\nInternational Double Taxation and Withholding Taxes<\/h2>\n\n\n\n
Double Taxation Conventions (DTCs)<\/h3>\n\n\n\n