Jurisdiction overviewTax in Cabo Verde
Last reviewed: · by TaxProsRated editorial
Key points
Cabo Verde's Direcção Nacional de Receitas do Estado (DNRE) administers personal income tax (IRPS) at progressive rates of 16.5%, 23.1%, and 27.5%. Corporate income tax (IRPC) is 22% standard, 15% for qualifying SMEs, and effectively 2.5% for International Business Center (IBC) operators. IVA (VAT) is 15%. The Cape Verdean Escudo (CVE) is pegged to the Euro at CVE 110.265 — not the West African CFA Franc. Cabo Verde has approximately 8 active double-tax agreements; the OECD MLI is signed but Pillar Two is not yet adopted.
Who is the tax authority?
The Direcção Nacional de Receitas do Estado (DNRE) is Cabo Verde's revenue body. It operates under the Ministério das Finanças in Praia, the capital city on Santiago Island.
Three codes form the substantive legal foundation. The Código do IRPS covers personal income tax. The Código do IRPC governs corporate income tax. The Código do IVA establishes the VAT framework. Professional accounting and auditing practice falls under the Ordem Profissional dos Auditores e Contabilistas Certificados (OPACC).
Cabo Verde also participates in the CPLP framework (Community of Portuguese-Speaking Countries) and holds associate status in ECOWAS. Both memberships shape the country's regional compliance posture.
What is the tax year and when are returns due?
Cabo Verde uses the calendar year (1 January to 31 December). IRPS is withheld monthly from employee wages by employers.
IVA-registered businesses file monthly returns and remit by the end of the following month. Corporate IRPC payers make quarterly provisional payments and submit the annual declaration by 31 May.
Who counts as a Cabo Verde tax resident?
Under the Código do IRPS, an individual is tax resident in Cabo Verde if any of two conditions applies:
- Physical presence of 183 or more days in the tax year in Cabo Verde
- Habitual residence on any island of the archipelago (centre of vital interests)
Residents pay IRPS on worldwide income. Non-residents pay tax on Cabo Verde-source income only. The diaspora dimension is significant: the Cape Verdean diaspora (concentrated in Portugal, the USA, the Netherlands, and France) outnumbers the resident population of roughly 560,000.
Deep-dive: see expat and cross-border tax in Cabo Verde for practical rules around diaspora-resident dual filing.
What are the IRPS personal income tax rates?
Cabo Verde's Imposto sobre o Rendimento das Pessoas Singulares (IRPS) uses three progressive brackets. The compact structure keeps the top rate lower than many comparable Lusophone African peers.
| Yearly income (CVE) | IRPS rate |
|---|---|
| First bracket | 16.5% |
| Second bracket | 23.1% |
| Third bracket (highest) | 27.5% |
The three-bracket structure is relatively compact. The top rate of 27.5% is lower than Portugal (48%), Angola (25% standard but with different bracket thresholds), and many Sub-Saharan African peers.
Deep-dive: see self-employed tax in Cabo Verde for how IRPS applies to freelancers and sole traders.
How does IRPC (corporate tax) work?
Cabo Verde's Imposto sobre o Rendimento das Pessoas Colectivas (IRPC) has three distinct rate tiers, making it one of the more differentiated corporate-tax structures in West Africa.
General rate for most companies — services, hospitality, trade, manufacturing. Applies across all 10 islands unless a specific regime qualifies the entity.
Available to small and medium-sized enterprises below defined gross income thresholds. Eligible entities elect the SME rate at filing. Threshold and qualification rules in the Código do IRPC.
International Business Center entities in the Praia special-regime area qualify for a substantially reduced effective rate. IBC status requires separate DNRE licensing and compliance with substance requirements.
Withholding tax on dividends paid to non-residents is 10%. Tax losses may be carried forward. Cabo Verde has not yet adopted the OECD Pillar Two global minimum tax.
IBC — International Business Center: 2.5% effective IRPC
The International Business Center framework targets international holding, finance, and services companies. Licensing requires substance in Cabo Verde — the rate is not a simple registration-only regime. IBC entities benefit from the CVE/EUR peg, a civil-law legal system, and the CPLP Lusophone network while operating at a 2.5% effective rate.
Deep-dive: see IBC and offshore structures in Cabo Verde for licensing requirements and substance rules.
What is the IVA (VAT) framework?
Imposto sobre o Valor Acrescentado (IVA) is Cabo Verde's VAT system. The standard rate is 15% under the Código do IVA.
| IVA rate | Applies to |
|---|---|
| 15% | Standard — most goods and services |
| 0% | Exports (zero-rated, not exempt) |
| Exempt | Financial services, healthcare, education |
Mandatory IVA registration applies once annual turnover crosses the DNRE threshold. Below that threshold, voluntary registration is available. Zero-rating on exports allows registered exporters to recover input IVA on business costs without a cash-flow cost on the exported revenue.
Deep-dive: see IVA and indirect tax in Cabo Verde for registration thresholds and recovery mechanics.
What is the CVE currency framework?
Cabo Verde uses the Cape Verdean Escudo (CVE), pegged to the Euro at the fixed rate of CVE 110.265 since 1998 under an agreement with Portugal supported by the ECOWAS Currency Agreement.
Cabo Verde is an ECOWAS associate, but it is NOT a member of the UEMOA monetary union and does NOT use the West African CFA Franc (XOF). The CVE/EUR peg is a bilateral arrangement with Portugal backed by a Portuguese Treasury guarantee. This gives Cabo Verde a de facto Euro-zone monetary framework that most of its West African neighbours lack.
For tax purposes, the EUR peg reduces foreign-exchange conversion complexity for transactions with Portugal, the EU, and other Euro-zone partners. IBC companies and exporters with Euro-denominated contracts benefit from this structural stability. CVE thresholds in the tax codes are set in nominal CVE amounts; the EUR peg means they have roughly stable real-value benchmarks.
How are cryptoassets treated?
Cabo Verde has no dedicated legislative framework for cryptoassets as of 2026. The Banco de Cabo Verde (BCV) has issued cautionary advisories about virtual currencies but has not enacted a formal ban.
Where a taxpayer declares cryptoasset gains, the DNRE applies the nearest applicable existing income category — typically capital income or business income under IRPS or IRPC depending on classification. No dedicated reporting portal, crypto register, or formal ruling procedure exists. Obtain written guidance from DNRE before structuring transactions above material thresholds.
Deep-dive: see crypto taxation in Cabo Verde for the current BCV advisory framework.
What is the treaty network?
Cabo Verde has approximately 8 active bilateral double-tax agreements. Portugal is the anchor treaty, reflecting the colonial-era and modern economic relationship. There is no Cabo Verde–USA DTA.
Cabo Verde has signed the OECD Multilateral Instrument (MLI) but has not yet adopted Pillar Two. Treaty modifications from the MLI apply to covered bilateral agreements.
Deep-dive: see tax treaty relief in Cabo Verde for bilateral rate schedules.
Where does Cabo Verde sit in the regional cohort?
Cabo Verde anchors the Atlantic Lusophone island cohort within the broader Lusophone Africa grouping. The wider PALOP and Atlantic-island landscape splits into five distinct tax archetypes:
Cabo Verde's Lusophone peer islands (Sao Tome and Principe, Equatorial Guinea as partial associate) share civil-law-derived tax systems and the CPLP regional framework. The CVE/EUR peg distinguishes Cabo Verde sharply from the XOF-using UEMOA zone.
Common pitfalls and compliance pressure-points
Foreign companies and individuals frequently encounter a set of Cabo Verde-specific compliance traps:
Cabo Verde is NOT in the UEMOA monetary union and does not use the West African CFA Franc. The CVE/EUR peg is a bilateral Portugal arrangement. Operators pricing contracts in XOF or USD bear currency-conversion obligations under CVE tax thresholds.
Cabo Verde and the United States have no bilateral double-tax agreement. Cape Verdean-Americans (a significant community in Massachusetts and Rhode Island) who receive income from Cabo Verde face full double-tax exposure — no treaty-reduced withholding, no competent-authority mechanism.
Cabo Verde holds ECOWAS associate status, not full membership. Trade-facilitation concessions available to full ECOWAS members may apply only partially or under specific bilateral protocols. Verify current status before assuming full ECOWAS trade-tax benefits.
The 2.5% effective IBC rate is not a registration-only regime. The DNRE applies substance criteria — real economic presence, local staff, qualifying activity definitions. Companies using the IBC framework without adequate substance risk reclassification to the standard 22% IRPC rate.
The Cape Verdean diaspora outnumbers the resident population. Diaspora members who retain real-estate, rental income, or business income in Cabo Verde may be liable for IRPS on that Cabo Verde-source income regardless of foreign residence. Applicable DTA determines the relief — for US-based diaspora, no DTA exists.
Cabo Verde covers 10 inhabited islands across two island groups (Barlavento and Sotavento). Business registrations, property ownership, and labor contracts can span multiple islands with logistical complexity for documentation and DNRE filing. All islands are within the single national DNRE jurisdiction.
The 15% SME rate under IRPC is not automatic. Companies must elect it and demonstrate they meet the gross income threshold. Failing to elect correctly at annual filing locks in the standard 22% rate for that period.
Cabo Verde's regional integrations (CPLP, ECOWAS associate, AfCFTA) facilitate trade and information-exchange within specific partner sets. Common-law and Anglophone trading partners do not benefit from the same treaty infrastructure — the network is Lusophone-first.
When should you talk to a Cabo Verde Tax-Adviser or Contabilista?
Some DNRE filings are routine. Other situations call for a qualified Contabilista (OPACC-registered) or an experienced Tax-Adviser with Cabo Verde IRPC and IBC expertise:
- Your company is exploring or already licensed under the IBC framework and needs substance verification
- You receive Cabo Verde-source income (rental, dividends, royalties) while based in the USA — no DTA protects against double taxation
- Your income bracket sits near the IRPC SME threshold and the 22% vs 15% rate election matters
- Your business activity spans multiple islands and requires multi-site registration and payroll compliance
- You received a DNRE assessment notice, transfer-pricing query, or IBC-status review letter
- You are a diaspora member (Portugal, USA, Netherlands, France) with ongoing Cabo Verde income and uncertain IRPS exposure
- Your company operates in tourism, fishing, or export activities where zero-rated IVA recovery is material
- You need to understand whether your cross-border transaction with a non-DTA partner triggers full withholding
You can find vetted Cabo Verde practitioners through the directory below.
This page presents general information. It is not personal guidance for your specific situation. Tax rules change. Always check current figures on the DNRE website (www.dnre.gov.cv) or with a licensed Cabo Verde practitioner before filing.
Frequently asked
Who is the Cabo Verde tax authority?
The Direção Nacional de Receitas do Estado (DNRE), under the Ministério das Finanças. The DNRE administers IRPS, IRPC, and IVA under the three corresponding tax codes. Professional accounting practice is regulated by OPACC (Ordem Profissional dos Auditores e Contabilistas Certificados).
When are Cabo Verde tax returns due?
Individual IRPS annual returns are due 31 March for the prior calendar year. Corporate IRPC annual returns are due 31 May. IVA-registered businesses file monthly returns. Quarterly provisional IRPC payments are also required during the year.
What are the Cabo Verde personal income tax (IRPS) rates?
IRPS uses three progressive brackets: 16.5% (first bracket), 23.1% (second bracket), and 27.5% (third and top bracket). The compact structure keeps the top rate lower than many comparable Lusophone African peers.
What is the Cabo Verde corporate tax rate?
Standard IRPC is 22%. SMEs meeting gross income thresholds qualify for a reduced 15% rate by election at filing. Licensed International Business Center (IBC) entities in Praia qualify for a 2.5% effective rate subject to substance requirements. Non-resident dividend withholding is 10%.
What is the Cabo Verde VAT (IVA) rate?
IVA is 15% standard rate under the Código do IVA. Exports are zero-rated at 0%. Financial services, healthcare, and education are exempt. IVA registration is mandatory above DNRE turnover thresholds; voluntary registration is available below.
Is the Cape Verdean Escudo pegged to the Euro or the CFA Franc?
The Cape Verdean Escudo (CVE) is pegged to the Euro at CVE 110.265 — not to the West African CFA Franc (XOF). Cabo Verde is an ECOWAS associate but is NOT in the UEMOA monetary union. The CVE/EUR peg is a bilateral arrangement backed by Portugal's Treasury, in place since 1998.
Does Cabo Verde have a tax treaty with the USA?
No. There is no Cabo Verde–USA double-tax agreement. Cape Verdean-Americans (large communities in Massachusetts and Rhode Island) who receive Cabo Verde-source income face full double-tax exposure with no treaty relief mechanism.
How many double-tax agreements does Cabo Verde have?
Approximately 8 active bilateral double-tax agreements. Major partners include Portugal (anchor treaty), Senegal, Macau, Mauritius, Spain, Luxembourg, the Netherlands, and Morocco. The OECD Multilateral Instrument (MLI) is signed. Pillar Two is not yet adopted.
How are cryptoassets taxed in Cabo Verde?
Cabo Verde has no dedicated crypto-asset tax framework as of 2026. The Banco de Cabo Verde (BCV) has issued cautionary advisories but no formal ban. Where declared, gains fall under existing IRPS or IRPC income categories depending on classification. No dedicated reporting portal or ruling procedure exists.
Major tax firms in Cabo Verde
Verified directory of the largest accounting + tax practices operating in Cabo Verde. Listings are entity-level reference cards — claim flow is open to firm representatives.
- Big 4
Deloitte Cabo Verde
- Big 4
PwC Cape Verde
- National
BDO Cape Verde
- National
Mazars Cabo Verde
- Regional
PKF Cabo Verde
Find a tax pro in Cabo Verde
Browse credentialed pros serving Cabo Verde — filter by specialty, language, and credential type.
Browse the Cabo Verde directorySources
The figures, dates, and rules on this page are sourced from the documents listed below. Where two sources disagree, both are listed.
- Direção Nacional de Receitas do Estado (Cabo Verde) · accessed
- Government of Cabo Verde · accessed
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Cabo Verde as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.