Cabo Verde Inheritance & Gift Tax Guide 2026

Overview — Inheritance & Gift Taxation

Cabo Verde taxes the transfer of assets both during life (gifts) and upon death (inheritance). The tax is based on the net value of the assets transferred, after deducting liabilities and applicable allowances. The rate depends on the relationship between the parties — closer relatives pay lower rates. The Direção Nacional de Receitas do Estado (DNRE) administers these taxes. The Código Civil governs succession law, including forced heirship rules that reserve a portion of the estate for certain heirs (descendants and spouse).

Inheritance Tax — Imposto sobre as Sucessões

Inheritance tax is payable on the net value of assets inherited upon death. The rates vary by relationship:

• Spouse and direct descendants (children) — progressive rates from 0% to 15%, with a substantial tax-free allowance
• Direct ascendants (parents) — rates from 5% to 20%
• Siblings — rates from 15% to 30%
• Other relatives — rates from 20% to 40%
• Non-relatives — rates up to 50%

The tax-free allowance for spouses and children is significant, meaning most middle-class estates pass tax-free to direct heirs. The tax is payable within 6 months of the date of death. The executor or heir must file a declaration of succession with DNRE detailing all assets and liabilities of the deceased. Late filing attracts penalties and interest.

Gift Tax — Imposto sobre as Doações

Lifetime gifts are subject to gift tax at the same progressive rates as inheritance tax, based on the relationship between donor and recipient. However, certain lifetime gifts may qualify for reduced rates or exemptions:

• Gifts to spouse — exempt from gift tax (within certain limits)
• Gifts to children — preferential rates with annual tax-free allowances
• Gifts for marriage — reduced rates for wedding gifts within limits
• Charitable gifts — exempt if to recognised charitable or religious organisations

The donor is primarily liable for the gift tax, though the recipient may assume liability. The gift must be formalised through a notarial deed for immovable property. Undeclared gifts may be subject to reassessment by DNRE.

Succession Law — Código Civil

Cabo Verde's succession law under the Código Civil includes forced heirship provisions (legítima). Certain heirs are entitled to a minimum share of the estate regardless of the deceased's will. The forced heirs are:

• Children — entitled to a reserved portion of the estate
• Spouse — entitled to a minimum share, with rights varying by marriage regime

The freely disposable portion depends on the number of children. With one child, 50% is free; with two children, 33%; with three or more, 25%. Wills must respect these forced heirship rules. Non-residents should note that Cabo Verdean succession law may apply to assets located in Cabo Verde, even if the deceased was domiciled elsewhere.

Estate Planning Considerations

Effective estate planning in Cabo Verde can reduce the inheritance tax burden. Common strategies include:

• Life insurance — proceeds paid to named beneficiaries are generally exempt from inheritance tax
• Gifting during lifetime — using annual allowances to transfer wealth gradually
• Joint ownership — property held in joint names passes to the survivor without full succession proceedings
• Wills — a properly drafted will can optimise tax outcomes while respecting forced heirship
• Offshore structures — international estate planning using Cabo Verdean or foreign vehicles

Professional advice from a notário or tax advisor is strongly recommended for estate planning in Cabo Verde.

FAQs

Do I need to pay inheritance tax if I inherit property as a child?

Children benefit from a significant tax-free allowance. Estates below the allowance threshold pass tax-free. Above the threshold, progressive rates apply starting at relatively low percentages.

Is there a way to avoid gift tax when transferring assets to family?

Transfers between spouses are generally exempt. Annual tax-free allowances for gifts to children can be used to transfer wealth gradually without triggering gift tax.

Does Cabo Verde recognise foreign wills?

Foreign wills may be recognised in Cabo Verde but must go through the probate process to be effective for Cabo Verdean assets. It is generally advisable to have a separate Cabo Verdean will for assets located in Cabo Verde.

Disclaimer

This guide provides general information about Cabo Verdean inheritance and gift tax for the 2026 tax year. Succession law is complex. Always consult with a qualified Cabo Verdean notário or tax advisor for advice specific to your situation. InvestmentKit does not provide tax or legal advice.