# Cabo Verde: taxes, residence and cost of living Source: https://domicile.wiki/places/cabo-verde/ (domicile.wiki, researched 2026-10-15). Data licence CC BY-SA 4.0. Research, not tax or legal advice. ## At a glance For an EU-citizen family of five living off a EUR 30M portfolio (the guide's default reader). - Wealth tax: none - Children inherit: tax-free - EU member: no - Currency: CVE - Capital: Praia ## Tax on investments, inheritance and wealth Cabo Verde taxes residents on worldwide income. Capital gains on shares and real estate are taxed at a flat 1%, Cabo Verdean dividends at a flat 10%, and foreign income goes into the declared income taxed at 16.5-27.5% with a credit for foreign tax. There is no wealth tax, inheritance or gift tax; inherited or donated Cabo Verdean real estate bears the 1% municipal transfer tax (ITI). A property-ownership tax (IPI) of 0.1% replaced the old IUP from 2026. - **Cabo Verde tax resident**: Worldwide PIT; flat 1% on capital gains, 10% on dividends; foreign income at 16.5-27.5%. ## Inheritance law and trusts The Civil Code protects a reserved share (legítima) for compulsory heirs, so a will cannot dispose of it. The fractions were not retrieved. Rules for foreigners, trusts and foundations were not sourced. ## Daily life (0-100, higher is better) - Safety and personal security: 48 - Political and institutional stability: 60 - Corruption and government integrity: 64 - Legal system and property rights: 62 - Healthcare quality and access: 64 - Human development and quality of life: 34 - Infrastructure and connectivity: 75 - Business opportunities and economy: 46 ## Research notes ### Cabo Verde — family-office tax dossier Last reviewed: 2026-10-15 Tax year: 2026 Reviewer: research agent (Claude), unreviewed by a tax adviser #### Summary Cabo Verde taxes residents on worldwide income. Capital gains on shares and real estate are taxed at a flat 1%, Cabo Verdean dividends at a flat 10%, and foreign income goes into the declared income taxed at 16.5-27.5% with a credit for foreign tax. There is no wealth tax, inheritance or gift tax; inherited or donated Cabo Verdean real estate bears the 1% municipal transfer tax (ITI). A property-ownership tax (IPI) of 0.1% replaced the old IUP from 2026. US citizens: US citizens remain fully US-taxed on worldwide income and estates; the app adds the US federal layer. No US-Cabo Verde income tax treaty. #### Residence and eligibility More than 183 days in aggregate in the calendar year, or fewer days with a dwelling at 31 December suggesting habitual residence (PwC). - **Residence permit** (EU, US, OTHER): Non-nationals need a residence permit; investor-residence options exist but were not verified in this session. #### Capital gains ##### Standard regime Capital gains of individuals on the disposal of immovable property, intellectual property or shareholdings are taxed at a flat 1% (Category E, final withholding method). Foreign income of residents is taxed under the declarative method at 16.5-27.5%; whether foreign share gains stay at the flat 1% or are taxed at those rates was not established. - **Important exceptions, statute references and announced changes:** From 1 January 2026 the IUP (which also taxed certain real estate gains) was repealed and replaced by IPI/ITI; real estate transfer tax ITI 1% on acquisitions. - **Tax year / confidence / verification:** 2026 / low / partially_verified (checked 2026-10-15) - **JSON numbers:** headline 1% (0.01); listed domestic 1% (0.01); listed foreign n/a (null); private business sale 1% (0.01); local real estate 1% (0.01); foreign real estate n/a (null). - **How derived:** Category E flat 1% for domestic listed shares, private company shares and Cabo Verde real estate. Foreign listed shares and foreign real estate: null (1% or 16.5-27.5% under the declarative method). - **Trader recharacterisation:** Habitual dealing would be Category B business income at the PIT rates. - **Foreign assets:** Worldwide taxation; credit for foreign tax up to the Cabo Verde tax on that income. Open points for this tax: Rate on a resident's gains on foreign securities and foreign property (1% flat or progressive 16.5-27.5%). #### Dividends ##### Standard regime Dividends are investment income (Category D) taxed at a flat 10%. Income obtained abroad by residents is taxed under the declarative method at 16.5% to 27.5% with a credit for foreign tax up to the Cabo Verde tax. - **Tax year / confidence / verification:** 2026 / medium / partially_verified (checked 2026-10-15) - **JSON numbers:** headline 27.5% (0.275); domestic 10% (0.1); foreign gross 27.5% (0.275); foreign tax relief: credit. - **How derived:** Domestic 10% flat. Foreign: top declarative rate 27.5% (above CVE 1.8 million) before credit. - **Outbound withholding:** 10% on dividends (Category D rate; non-residents taxed at the same flat rates). - **Treaty network:** Only three treaties: Portugal, Guinea-Bissau and Macau. US and most EU dividends would bear full statutory source WHT. - **Holding companies:** CIT 20% plus fire-brigade surtax (not verified); worldwide basis. Open points for this tax: Whether foreign dividends can instead be taxed at the 10% Category D flat rate. #### Inheritance and gifts to children ##### Standard regime No inheritance or gift tax was found. From 2026, ITI (municipal real estate transfer tax) of 1% applies to free transfers by death or donation of Cabo Verde real estate, paid by the acquirer. Movable property such as securities is not covered by ITI. - **Important exceptions, statute references and announced changes:** Stamp duty on gratuitous transfers (as in Portugal's model) was not found in PwC's stamp duty table but was not ruled out. - **Tax year / confidence / verification:** 2026 / low / partially_verified (checked 2026-10-15) - **JSON numbers:** basis `none`, children `fully_exempt`, exemption 0 CVE, brackets (marginal): none; other transfer costs 0% (0.0). - **Gifts:** No gift tax found; 1% ITI on donated Cabo Verde real estate. (same as inheritance: True; tax-free after years: None) - **Foreign assets:** No tax found. - **Residence/domicile rules:** Not applicable. - **Business relief covers listed shares:** False Open points for this tax: Whether the Stamp Duty Code taxes gratuitous acquisitions (inheritance/gifts) of movables. #### Wealth tax ##### Standard regime No net wealth tax. - **Tax year / confidence / verification:** 2026 / medium / partially_verified (checked 2026-10-15) - **JSON type:** `none` - **Property tax (not a wealth tax):** From 1 January 2026: IPI (property-ownership tax) 0.1% of taxable value (0.15% land), replacing the 1.5% IUP; ITI transfer tax 1% (3% if a party uses a privileged tax regime). #### Special regimes None modelled; see Residence and eligibility. #### Company taxation (kept separate from personal tax) Headline CIT rate: 20% (0.2). CIT 20% on worldwide profits of resident companies; micro and small companies pay a 4% single special tax on turnover. #### Cost of living notes Not researched. #### Open questions - The 1% capital gains rate is low enough that its scope for foreign assets matters greatly; it should be confirmed in the PIT Code. #### Sources - Cabo Verde - Individual - Income determination (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/individual/income-determination - Cabo Verde - Individual - Taxes on personal income (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/individual/taxes-on-personal-income - Cabo Verde - Individual - Foreign tax relief and tax treaties (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/individual/foreign-tax-relief-and-tax-treaties - Cabo Verde - Individual - Other taxes (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/individual/other-taxes - Cabo Verde - Corporate - Other taxes (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/corporate/other-taxes - Cabo Verde - Individual - Residence (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/individual/residence - Cabo Verde - Corporate - Taxes on corporate income (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/cabo-verde/corporate/taxes-on-corporate-income #### Change log - 2026-10-15: initial research. ## Residence and succession sources - [Ficha informativa: Cabo Verde (sucessões)](https://atlascplp.csm.org.pt/assets/docs/Ficha_Informativa_CaboVerde.pdf) — Atlas CPLP / Conselho Superior da Magistratura - [HCCH status table: Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition](https://www.hcch.net/en/instruments/conventions/status-table/?cid=59) — Hague Conference on Private International Law