Cabo Verde Corporate Tax Guide 2026

Overview — Corporate Tax in Cabo Verde

Corporate tax in Cabo Verde is governed by the Código de Imposto sobre o Rendimento (CIR) and administered by the Direção Nacional de Receitas do Estado (DNRE). A company is tax resident if it has its registered office or place of effective management in Cabo Verde. Resident companies are taxed on worldwide income; non-resident companies with a permanent establishment are taxed on Cabo Verde-source income only. Companies must register for tax with DNRE and obtain a Número de Identificação Fiscal (NIF). The tax year aligns with the calendar year. Annual returns are due by 31 May of the following year.

Standard Corporate Tax Rate — 22%

The standard IRC rate for resident companies in Cabo Verde is 22% of taxable profits. Non-resident companies with a permanent establishment in Cabo Verde are also taxed at 22% on Cabo Verde-source income. Taxable profit is computed as gross revenue less allowable deductions including operating expenses, depreciation, interest costs, and losses carried forward. Losses may be carried forward for up to 5 years. Capital gains are included in ordinary taxable income and taxed at the standard corporate rate. Cabo Verde has no minimum tax equivalent to a gross receipts tax.

Reduced Rate — Tourism & SMEs — 17%

Companies engaged in qualifying tourism activities or classified as small and medium enterprises benefit from a reduced IRC rate of 17%. This incentive is designed to promote Cabo Verde's key tourism sector and support small business growth. To qualify as an SME, the company must meet criteria based on turnover, total assets, and number of employees. Tourism businesses must be licensed by the tourism authority and derive at least 50% of their gross income from qualifying tourism activities including hotels, resorts, tour operations, and related services. Given Cabo Verde's tourism-driven economy, this reduced rate applies to a significant portion of the business sector.

Investment Incentives

Cabo Verde offers tax incentives for qualifying investments through the Investment Code (Código de Investimentos). Benefits may include:

• Tax holidays — partial or full exemption from IRC for a specified period for qualifying new investments
• Reduced customs duties — on imported capital equipment for approved projects
• IVA exemptions — on imports of qualifying capital goods
• Free trade zones — enhanced incentives for companies operating in designated economic zones

The Cabo Verde TradeInvest agency assists investors in navigating incentive applications. Minimum investment thresholds and employment creation requirements apply depending on the sector and location.

FAQs

What is the penalty for late filing of corporate tax returns?

Late filing attracts penalties including interest on unpaid tax at the statutory rate. Additional penalties may apply for failure to maintain proper records or for tax evasion. The DNRE conducts regular audits.

Can foreign companies claim treaty relief?

Yes, Cabo Verde has an expanding network of double tax treaties. Treaty relief may reduce withholding tax rates on dividends, interest, and royalties paid to non-residents. Portugal and other Lusophone countries have treaties with Cabo Verde.

How are dividends from subsidiaries taxed?

Dividends received by a resident company from another resident company may qualify for participation exemption, reducing the effective tax burden on intercorporate dividends. Dividends from foreign subsidiaries may be subject to tax with credit for foreign withholding taxes.

Disclaimer

This guide provides general information about Cabo Verdean corporate 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.