How do paid employment and business setup differ as work options in Cabo Verde?

Paid employment creates a work relationship with an employer and involves contracts, working hours, wages and social protection. Business setup creates an independent company or activity that needs formal registration, tax arrangements, possible permits and continuing obligations.

What does the formal and informal distinction change when assessing work in Cabo Verde?

It affects how work is recorded and how employment, employer and social-protection arrangements are documented. In the second quarter of 2025, almost half of employed people in Cabo Verde worked informally.

Work in Cabo Verde

Q: Which work activities in Cabo Verde require checking a professional card or an industry licence?

Regulated occupations may require the Carteira Profissional, which applies across eight occupational families covering 45 qualifications and 207 occupations or occupational pathways. A business may also need an industry licence even after obtaining a NIF and entering the commercial register.

Work in Cabo Verde includes jobs, employers, unemployment, labor market conditions, occupations and business setup. In the second quarter of 2025, more than 200,000 people were employed, and almost half worked informally. Services provide most recorded jobs, while tourism is concentrated on Sal and Boa Vista.

Tip

Choose the route that matches your situation: compare an employment relationship with starting a business, and verify the obligations attached to the specific activity. Do not treat a NIF or commercial registration as proof that every required licence or professional card is in place. Unclear contracts, informal arrangements and missing occupational permissions can create avoidable risks for income, protection and continued work.

byAna&Manuel

Employment

Employment in Cabo Verde covers job searching, employment contracts, working hours, wages and social protection. In the second quarter of 2025, more than two hundred thousand people were employed. Almost half of employed people worked informally.

Employer

An employer in Cabo Verde organizes hiring, work processes, pay, safety, and the representation of the company before employees and authorities. The formal employer role is established, while many units in the informal economy operate without employees. Depending on the matter, the responsible bodies include the labour administration, labour inspectorate, and social security.

Unemployment

Unemployment in Cabo Verde means the involuntary loss of paid work when a person is able and available to work. For 2024, the INE reported 17,373 unemployed people and an unemployment rate of 8.0 percent; the rate was 20.1 percent for people aged 15 to 24 and 4.3 percent for people aged 35 to 64. Registration, job seeking, possible income support and access to the unemployment benefit depend on insurance status, residence, employment history and the responsible institution.

Labor market

Cabo Verde has a formal and informal labor market across its islands. Services provide most recorded jobs, while tourism is concentrated on Sal and Boa Vista. Youth, women, qualifications, wages and migration affect access to work. Annual unemployment was 6 point 2 percent in 2025, but labor underutilization remained 23 point 3 percent.

Professions

The occupational system in Cabo Verde covers occupations, qualification pathways, and special rules for certain professions. A professional card known as Carteira Profissional is required for regulated activities in eight occupational families, covering 45 qualifications and 207 occupations or occupational pathways. Other occupations are subject to freedom of occupation but may have their own requirements set by an industry, institution, or public authority.

Business

Businesses in Cabo Verde go through formation, tax registration, permits, ongoing obligations and closure. The NIF and commercial register provide the formal basis but do not replace an industry licence. Legal form, activity and location determine costs, deadlines and responsibilities.

Paid employment in Cabo Verde covers job searches, employment contracts, working hours, wages and social protection. Employers organize hiring, work processes, pay and safety, and may deal with the labor administration, labor inspectorate and social security. Business setup follows a different path: the NIF and commercial register establish a formal basis, but an industry licence may still be required. The legal form, activity and location affect costs, deadlines and ongoing responsibilities. The labor market combines formal and informal work across the islands. Youth, women, qualifications, wages and migration influence access to work. Annual unemployment was 6.2 percent in 2025, while labor underutilization was 23.3 percent. These figures describe different pressures on the labor market. In 2024, INE recorded 17,373 unemployed people and an unemployment rate of 8.0 percent; the rate was 20.1 percent for people aged 15 to 24 and 4.3 percent for people aged 35 to 64. Occupational rules matter when a job belongs to a regulated activity. The Carteira Profissional is required for regulated activities in eight occupational families covering 45 qualifications and 207 occupations or occupational pathways. Other occupations follow freedom of occupation but can still have requirements set by an industry, institution or public authority. A work-related assessment therefore needs to distinguish employment from self-employment or business activity, general labor-market conditions from individual unemployment, and unrestricted occupations from work requiring a professional card or licence.