What taxes do expats pay in Cabo Verde?
Taxes in Cabo Verde will affect every paycheck you earn. Here's a clear breakdown of what expats actually pay in 2026.
Tax System Overview
| Tax Component | Rate / Details |
|---|---|
| Tax System Type | Progressive |
| Top Personal Income Tax Rate | 13% |
| Effective Rate on €90,000 | 13.1% |
| Net Monthly on €90,000 Gross | €5,790 |
| VAT (Standard Rate) | 15.0% |
| Special Expat Regime | No special tax regime for expats |
Income Tax in Cabo Verde
Cabo Verde operates a progressive income tax system, meaning higher earners pay a higher percentage on their income above certain thresholds. The top marginal rate is 13%.
What Does This Mean in Practice?
On a gross annual salary of €90,000, you would pay an effective tax rate of approximately 13.1%, resulting in a net monthly income of approximately €5,790. This accounts for income tax and mandatory social contributions.
For context, the average monthly salary in Cabo Verde is approximately €428.
Considering Cabo Verde? Our decision engine scores your profile against real visa rules, salary data, and cost of living. Get Your Free Verdict →
VAT (Value Added Tax)
The standard VAT rate in Cabo Verde is 15.0%. VAT is included in consumer prices and applies to most goods and services. Reduced rates typically apply to:
- Basic food items and groceries
- Medical supplies and pharmaceuticals
- Books and educational materials
- Public transport (in some cases)
Special Tax Regimes for Expats
No special tax regime for expats
While Cabo Verde may not have a widely publicised expat tax regime, there may be bilateral tax treaties with your home country that prevent double taxation. Check if a Double Taxation Agreement (DTA) exists.
Tax Filing Requirements
As a tax resident of Cabo Verde, you are generally required to:
- Register with tax authorities upon establishing residence
- Obtain a tax identification number
- File an annual tax return (deadlines vary)
- Declare worldwide income if you are a tax resident
- Report foreign bank accounts if applicable
Double Taxation
Cabo Verde has double taxation agreements (DTAs) with numerous countries. These treaties determine which country has the right to tax specific types of income and help prevent you from being taxed twice on the same income. Before moving, check whether a DTA exists between Cabo Verde and your home country.
Tax Tips for Expats
- Hire a local tax adviser familiar with expat situations during your first year
- Keep records of all income, deductions, and tax payments from day one
- Understand residency rules: most countries consider you a tax resident after 183 days
- Check for exit tax: some countries impose tax on unrealised gains when you leave
- Social security contributions are often separate from income tax and can add 10-20% to your total burden
Frequently Asked Questions
What deductions can expats claim in Cabo Verde?
Common deductions in Cabo Verde include pension contributions, health insurance premiums, mortgage interest (in some cases), charitable donations, and work-related expenses. Moving costs may also be deductible in some jurisdictions. A local tax adviser can maximise your deductions.
Are there special tax regimes for expats in Cabo Verde?
No special tax regime for expats. Special tax regimes can significantly reduce your tax burden during the initial years of relocation. Consult a local tax adviser to determine your eligibility.
When does tax residency start in Cabo Verde?
In most cases, you become a tax resident in Cabo Verde after spending 183 days or more in a calendar year. Some countries also consider your centre of vital interests (family, property, economic ties). Tax residency triggers worldwide income taxation in many jurisdictions.
Is freelance income taxed differently in Cabo Verde?
Freelancers in Cabo Verde are typically treated as self-employed and must pay both income tax and self-employed social security contributions. The progressive tax system applies. The effective rate on €90k is 13.1%. Quarterly estimated tax payments are usually required.
Are crypto earnings taxed in Cabo Verde?
Cryptocurrency taxation in Cabo Verde varies. Most countries treat crypto gains as capital gains or income depending on frequency of trading. Mining and staking rewards are typically taxable. Regulatory frameworks are evolving, so consult a specialist tax adviser.
Planning to move to Cabo Verde?
Get your personalised emigration verdict covering visa eligibility, cost of living, and career prospects across 200+ countries.
Get Your Free Verdict