DoubleTaxationTaxes on salary: Cape Verde preliminary data
How much income tax and social contributions are paid on a salary in Cape Verde, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | CVE 6,591,726 ≈ €60,000 |
|---|---|
| Income tax | CVE 1,452,332 ≈ €13,220 |
| Employee contributions | CVE 560,297 ≈ €5,100 |
| Take-home pay | CVE 4,579,098 ≈ €41,680 |
| Employer contributions and payroll taxes | CVE 1,054,676 ≈ €9,600 |
| Employer's labour cost | CVE 7,646,403 ≈ €69,600 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 CVE 3,295,863 | €60,000 CVE 6,591,726 | €120,000 CVE 13,183,453 |
|---|---|---|---|
| Sole proprietor | CVE 612,666 20.7 % | CVE 1,428,392 24.1 % | CVE 3,059,845 25.8 % |
| Company | CVE 830,558 28.0 % | CVE 1,661,115 28.0 % | CVE 3,322,230 28.0 % |
| Sole proprietor · Regime Jurídico Especial das Micro e Pequenas Empresas (REMPE) — Tributo Especial Unificado (TEU) | CVE 131,835 4.4 % | CVE 263,669 4.4 % | above the regime's limit |
Special tax regimes
Residentes não habituais (IRPS art. 22)
For people relocating · rate 10.0 %
Who: Individuals who become tax resident in Cabo Verde and were not resident in any of the previous five years, registering as non-habitual residents by 31 March of the following year.
Employment and business income from high value-added scientific, artistic or technical activities (list approved by Portaria 26/2018) taxed at 10% (IRPS art. 46(1)(d)); withholding 10% on employment income and 5% on business income (arts. 47(2), 48(4)). Status lasts 7 consecutive years from registration as resident (art. 22(2) as amended by the 2026 Budget Law; 10 years before).
Incentivo ao exercício de atividade profissional prestada de forma remota
For employees · rate 0.0 %
Who: Non-resident employees and independent professionals working remotely for persons or companies domiciled outside Cabo Verde.
Income tax exemption for one year on income from remote work for clients or employers abroad; after one year of stay the non-habitual resident regime applies; customs duty exemption on work equipment.
Legal basis: Lei n.º 69/X/2025 (Orçamento do Estado 2026) art. 47
Tax residence
The tax residence check does not cover Cape Verde yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 109.862105 CVE (UN Treasury operational rate of exchange effective 31 Dec 2025 (in force on 2 Jan 2026), 02/01/2026) ↗
Sources
- Boletim Oficial I Série n.º 133, 1.º Supl., 31 Dec 2025 — Lei n.º 69/X/2025, Orçamento do Estado 2026 (arts. 29, 30, 38-39, 47)
- Ministério das Finanças (DNRE) — Boletim Oficial I Série n.º 10, 2 Feb 2021: Lei n.º 116/IX/2021 with republication of the IRPS Code (as amended by Laws 5/IX/2016, 20/IX/2018, 86/IX/2020) and of the REMPE law
- Boletim Oficial I Série n.º 7, 23 Jan 2015 — Decreto-Lei n.º 6/2015, regime das retenções na fonte (category A withholding formula)
- US SSA — Social Security Programs Throughout the World: Africa, 2019 — Cabo Verde (INPS)
- UN Treasury — UN operational rates of exchange (rate effective 31 Dec 2025)
Data checked: 08/11/2026. An indicative calculation for a typical case. Not tax advice.