Taxes in Cabo Verde

The General Tax Code (Código Geral Tributário) and individual tax laws regulate the main obligations in Cabo Verde. The main authorities are the Ministry of Finance (Ministério das Finanças), the national revenue authority (DNRE) and its tax directorate (DGCI), the customs administration (DGA), tax offices (Repartições de Finanças) and the Citizen's House (Casa do Cidadão). Municipal taxes are governed by the relevant Municipal Council (Câmara Municipal) and its local rules. The NIF is the national tax identification number. Cape Verdean and foreign individuals can apply for it free of charge at a tax office or the Citizen's House. Non-residents need proof of their legal or tax status and identity in their country of origin; depending on the case, consular certification and a translation may be required. For individuals, personal income tax (IRPS) is generally based on taxable income when the person is resident in Cabo Verde. Non-residents pay tax on income from Cape Verdean sources. The system distinguishes, among other things, employment and pension income, business or professional income, property and rental income, investment income and capital gains. Many types of income are taxed at source; an annual return or assessment is mandatory or available depending on the type of income. Registration as a non-habitual resident (residente não habitual) may trigger special rules for seven years if completed in 2026. Companies and other taxable legal entities are subject to corporate income tax (IRPC). With organized accounting, the rate is 20 percent in 2026. The small-business regime (REMPE) applies turnover taxation of 4 percent to micro and small enterprises; the youth start-up regime (Start-up Jovem) may be taxed at 5 percent during its first five years, while certain TIC or research and development start-ups may be taxed at 2.5 percent during their first five years. Other investment or research incentives each require a statutory basis, approval and supporting evidence. Non-residents without a permanent establishment are subject to withholding tax depending on the type of income or, where no appropriate special rule applies, 20 percent; permanent establishments are treated under the rules for profits and advance and withholding taxes. The IVA applies to supplies of goods and services in Cabo Verde and to imports. The standard rate is 15 percent; certain accommodation and catering services are subject to a reduced rate of 10 percent, and butane gas has a special rate of 2.5 percent. Exemptions may result in a zero rate. The monthly Form 106 (Mod. 106), including its attachments, must be filed even when there is no taxable turnover. An input-tax credit is initially carried forward; after twelve months and with a credit exceeding 50,000 CVE, a refund may be requested. Independently of this, refunds may also be available when the activity ends or when the credit exceeds 250,000 CVE. For imports, customs duties vary by product and are approximately between 0 and 30 percent. They may be accompanied by a community levy of 0.5 percent, the TEA charge (TEA) of 5,000 CVE per registration and 500 CVE per additional sheet, the product- or weight-dependent ecological levy (Taxa Ecológica), and usually 15 percent IVA. Customs clearance is handled through the DGA and the SYDONIA customs clearance system (SYDONIA). Exemptions apply only where there is an appropriate legal basis and complete supporting documentation. The typical process runs from registration and obtaining a NIF through reporting the start, change or end of an activity, choosing the tax regime, filing electronically, obtaining the state payment document (DUC) and making payment. The DNRE portal supports electronic IVA, IRPS, IRPC and stamp-duty returns, validation, filing receipts, account statements and certificates of tax debt, income and tax residence. Payments can be made, among other ways, at a tax office, through commercial banks, home banking, Rede Vinti4 or Rede24, and through the payment platform (Porton di Nos Ilha). The DUC is the official proof of payment. DPR filings (DPR) and withheld taxes must each be submitted by the 15th of the following month. Form 106 and the IVA payment are generally due by the end of the following month. In 2026, advance payments for IRPC and category B IRPS are each made at 30 percent by 31 March, 31 August and 30 November; the category B DAICF declaration (DAICF) must be filed by 30 September. REMPE Form 107 and TEU are due quarterly according to the calendar. With organized accounting, category B taxpayers with more than 5,000,000 CVE are subject to the SAFT reporting requirement (SAFT). Late or missing returns may result in interest, fines and further sanctions. An additional payment after filing must be made within the statutory special period of 15 days; interest and penalties may also apply. Taxpayers must provide correct information on time. A replacement return is possible within the statutory deadlines and is generally also permitted up to 30 days after the deadline. Before an adverse deviation or audit decision, there is generally a 15-day hearing period. Tax proceedings usually take up to 90 days; certificates are generally issued within 15 days, or within 48 hours in cases of justified urgency. An assessment can first be challenged within 60 days by filing an administrative complaint (Reclamação) with the issuing authority, followed where applicable within 30 days by a hierarchical appeal and generally within 30 days by a court challenge. Suspensive effect requires an admissible guarantee or an exemption from that requirement. For cross-border matters, the relevant factors are tax residence, the source and type of income, a permanent establishment and any applicable double-tax treaty. Cabo Verde lists, among others, treaties with Portugal, Guinea-Bissau, Mauritius, Spain, Senegal and Macau. Without proof of tax residence, national law generally applies; for residents, taxation of worldwide income cannot be assumed automatically. In 2026, there is also a special exemption for income earned by non-resident employees or service providers from work aboard fishing vessels registered in Cabo Verde.