This stunning island nation off the West African coast is gaining popularity among expats for its laid-back lifestyle, year-round sunshine, and growing opportunities in remote work and entrepreneurship.
In this guide, we’ll walk you through everything you need to know about relocating to Cape Verde from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Cape Verde follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if you spend more than 183 days in Cape Verde during the tax year.
if your main residence is located in Cape Verde during the tax year.
Providing that you hold the digital nomad visa, employment income or self-employment income will be exempt from taxation in Cape Verde for one year. Cape Verde can be a very tax efficient place to live for expats and nomads and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
Exempt from CV taxation.
Applied for one year.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Cape Verde, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Cape Verde has three double taxation agreements signed.
