Cabo Verde's corporate income tax (Imposto sobre o Rendimento das Pessoas Colectivas, IRPC) is levied on a worldwide basis for resident companies, covering profits obtained both within and outside Cabo Verde, while non-resident companies with a permanent establishment in Cabo Verde are taxed only on Cabo Verde-source income attributable to that establishment. The system is administered by the Direcao-Geral dos Impostos (DGI) under the Codigo Geral Tributario.
The tax year generally follows the calendar year for most taxpayers, with annual IRPC returns filed with the DGI; foreign investors are subject to a separate 10% flat rate on qualifying foreign-sourced income (other than capital gains, which are also taxed at 10%).
Cabo Verde's headline corporate income tax (CIT) rate is 20.40%.
The headline personal income tax (PIT) rate is 27.5%.
The standard VAT/GST (or equivalent consumption tax) rate is 15%.
A non-resident company is deemed to have a PE in Cabo Verde if it has a fixed installation or permanent representation there, or maintains employees/personnel for 183 days or more (continuous or not) within a 12-month period, or has a dependent agent with contract-binding authority. Cabo Verdean resident individuals are taxed on worldwide income (Category B and C income must be declared; Category A employment income can optionally be included); non-resident individuals are taxed only on Cabo Verde-source income, at the same flat rates as residents.
A non-resident company is subject to IRPC on Cabo Verde-source income attributable to a permanent establishment maintained in the country. Because PEs are taxed on a territorial basis under Cabo Verde law, income obtained by the PE outside Cabo Verde is not subject to Cabo Verde tax, in contrast to the worldwide basis that applies to Cabo Verde-resident companies themselves.
Cabo Verde's CIT Code contains specific CFC rules applying to corporate (CIT) taxpayers, not individuals. Profits or income of a non-resident entity clearly subject to a more favorable tax regime are imputed to Cabo Verde-resident CIT taxpayers holding, directly or indirectly (even through a representative, fiduciary, or intermediary), at least 25% of that non-resident entity's share capital, voting rights, or income/asset attribution rights.
Net financing expenses are deductible only up to the higher of CVE 110 million or 30% of earnings before depreciation, net financing expenses, and taxes (an EBITDA-based approach) - this provision doesn't apply to public entities.
Cabo Verde classifies entities by their domestic legal form under the CIT Code rather than offering an elective check-the-box system, and no ATAD2-style anti-hybrid mismatch regime addressing double-deduction or deduction-without-inclusion outcomes has been identified.
No domestic FBAR-equivalent regime requires Cabo Verde residents to separately disclose foreign financial accounts. Per the OECD Global Forum's own May 2026 announcement, Cabo Verde has committed to begin CRS automatic exchange of financial account information by September 2027 - it is not yet currently exchanging under CRS as of 2026, resolving the apparent conflict between older "included" lists and newer "not yet exchanging" lists in secondary sources. US persons remain independently subject to FinCEN Form 114 (FBAR) and potentially Form 8938 regardless of Cabo Verde's own rules.
Capital gains on the sale of shares or other equity instruments held for at least 12 months are exempt from IRPC, whether realized by a resident, a non-resident with a Cabo Verde permanent establishment, or a non-resident without one; this exemption does not extend to gains on shareholdings acquired from entities subject to a more favorable tax regime, or to gains on companies whose assets are more than 50% Cabo Verde real estate. Separately, a 0% dividend withholding tax applies where a direct or indirect participation of at least 5% in share capital or voting rights has been held continuously for 24 months prior to the distribution.
Cabo Verde allows a foreign tax credit for tax paid abroad on income also taxed in Cabo Verde, equal to the lesser of the foreign tax actually paid or the portion of Cabo Verde CIT attributable to that foreign income (net of related costs and losses); where an applicable tax treaty exists, the credit cannot exceed the amount provided for under that treaty.
Per the US State Department's Cabo Verde Country Commercial Guide, Cabo Verde has tax treaties in force with Portugal, Macau, Spain, Guinea-Bissau, Senegal, and Luxembourg. Separately, treaties signed with Angola, Equatorial Guinea, and Sao Tome and Principe (approved for ratification in 2021) had not yet entered into force as of PwC's most recent tracking.