Cabo Verde Capital Gains Tax Guide 2026

Overview — CGT in Cabo Verde

Capital gains tax in Cabo Verde is governed by the Código de Imposto sobre o Rendimento (CIR). A chargeable gain arises when a person disposes of a capital asset for consideration exceeding the allowable cost. Disposal includes sale, exchange, and transfer for value. The tax applies to both individuals and companies, though the treatment differs. Resident individuals and companies are taxed on worldwide chargeable gains; non-residents are taxed only on gains from Cabo Verdean assets. For companies, capital gains are included in ordinary taxable income and taxed at the standard IRC rate (22% or 17% for tourism/SMEs). For individuals, a flat rate of 10% applies to most asset classes.

CGT on Property — 10%

Gains from the disposal of real property (land and buildings) are subject to CGT at 10% for individuals. The chargeable gain is calculated as: Selling price minus (Acquisition cost + Incidental costs + Improvement expenditure). Allowable costs include the original purchase price, notarial fees, stamp duty, and capital improvements. The gain is assessed in the year of disposal. The principal private residence may be exempt if the proceeds are reinvested in another principal residence within 24 months. Property held for more than 15 years may qualify for a phased reduction in the taxable gain. Non-residents selling Cabo Verdean property are also subject to CGT at 10%.

CGT on Securities — 10%

Gains from the disposal of securities (shares, bonds, and other financial instruments) are subject to CGT at 10% for individuals. This rate applies to gains from the sale of listed and unlisted shares, corporate bonds, and investment fund units. The cost base includes the acquisition price and associated transaction costs. Losses on securities may be offset against gains on securities in the same tax year, with unrelieved losses carried forward for up to 5 years. Gains from the disposal of government securities may be exempt from CGT.

Business Asset Disposals

For companies, capital gains on the disposal of fixed assets (property, plant, machinery, intangible assets) are included in ordinary taxable income and taxed at the standard IRC rate of 22% (or 17% for qualifying tourism/SMEs). Rollover relief is available when the proceeds from the disposal of a business asset are reinvested in a replacement asset within 2 years. The gain is deferred by reducing the cost base of the replacement asset. For individuals selling business assets, the 10% rate applies.

FAQs

How do I calculate my chargeable gain?

The chargeable gain is the difference between the disposal proceeds (net of selling costs) and the acquisition cost (plus enhancement expenditure). Example: Buy land for CVE 5,000,000, sell for CVE 8,000,000, costs of CVE 300,000. Gain = 8,000,000 − 5,000,000 − 300,000 = CVE 2,700,000. CGT at 10% = CVE 270,000.

Can I offset capital losses against capital gains?

Yes, capital losses in a tax year may be offset against capital gains in the same year. Unrelieved losses may be carried forward for up to 5 years for securities and up to 5 years for corporate assets.

What assets are exempt from CGT?

Principal residence (subject to reinvestment condition), personal motor vehicles, assets transferred on death, gifts between spouses, and gains below certain de minimis thresholds. Government securities may also be exempt.

Disclaimer

This guide provides general information about Cabo Verdean capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Cabo Verdean tax advisor or the Direção Nacional de Receitas do Estado for advice specific to your situation. InvestmentKit does not provide tax advice.