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Cabo Verde Wealth Tax Guide 2026

Cabo Verde does not have an annual net wealth tax, net worth tax, or any comprehensive wealth tax. The main periodic tax on wealth is the IMI (Imposto Municipal sobre Imóveis) on built properties at 0.5–2% of cadastral value. There is no tax on financial assets, shares, bank deposits, or other investment holdings. The absence of a wealth tax makes Cabo Verde attractive for high-net-worth individuals and expatriates considering relocation to the islands.

Overview — No Wealth Tax in Cabo Verde

Cabo Verde does not impose an annual tax on net wealth, net worth, or total assets. Unlike some European jurisdictions (France has the IFI, Spain has wealth tax, Norway has net worth tax), Cabo Verde relies on income taxes, consumption taxes (IVA), transaction taxes (stamp duty), and property taxes (IMI) rather than periodic wealth taxes. Financial assets including cash, bank deposits, shares, bonds, and investment fund units are not subject to any annual wealth or holding tax. There is no solidarity surcharge or wealth-based levy. The government has not announced any plans to introduce a wealth tax. This tax framework, combined with the stable Euro-pegged currency and pleasant climate, makes Cabo Verde increasingly attractive for international investors and retirees.

IMI — The Property Proxy

The IMI (Imposto Municipal sobre Imóveis) is the closest Cabo Verde has to a recurring wealth tax. It is an annual tax on built properties (urban and rural) based on the cadastral value. The rate varies by location and property characteristics:

  • Urban properties — 0.5% to 1.5% of cadastral value
  • Rural properties — 0.5% to 0.8% of cadastral value
  • Luxury properties — up to 2% depending on municipal rates

The IMI is payable by the owner regardless of whether the property is occupied or rented. The tax is relatively modest compared to the market value of the property — typically significantly less than 1% of market value annually. Revenue funds municipal services including waste collection, street lighting, and local infrastructure.

Taxes on Assets vs. No Wealth Tax

While Cabo Verde has no annual wealth tax, it does impose transaction and income taxes on assets:

  • IMI — annual tax on built properties (wealth proxy)
  • Stamp duty — 3–5% on property transfers
  • CGT — 10% on property and securities gains
  • Rental income — included in IRS at progressive rates 0–27.5%
  • Dividend WHT — 10% final tax
  • Interest WHT — 15% on interest income

These taxes apply when an asset generates income or is transferred, not on the mere holding of the asset. This is a significant advantage over jurisdictions with annual wealth taxes. For investors holding significant financial assets, the absence of wealth tax represents a material benefit.

International Comparison

Cabo Verde's position as a no-wealth-tax jurisdiction aligns it with most African and Lusophone countries that also do not tax net wealth. This contrasts with some European countries (Norway 1.1%, Switzerland cantonal up to 0.5%, Spain up to 3.5%) and Latin American countries that impose annual wealth taxes. For international investors, expatriates, and digital nomads considering relocation, Cabo Verde offers a tax-efficient environment for holding investment assets. The stable democracy, Euro-pegged currency (1 EUR = 110.265 CVE), and growing services sector further enhance the investment case. Careful planning is still needed for income tax, CGT, and property transaction taxes.

FAQs

Do I need to declare my assets annually in Cabo Verde?

There is no annual wealth declaration requirement for tax purposes in Cabo Verde. However, property owners must declare built properties for IMI purposes. Large asset transfers may need to be reported to the tax authorities.

Are there any taxes on crypto holdings if I don't sell?

No, merely holding digital assets does not trigger any tax in Cabo Verde. Tax arises only when crypto is disposed of or when income is generated (mining, staking).

Could Cabo Verde introduce a wealth tax in the future?

A wealth tax is not currently under active consideration by the Cabo Verdean government. The focus is on improving compliance with existing taxes, expanding the tax base, and supporting the tourism and services sectors.

Disclaimer

This guide provides general information about wealth taxation in Cabo Verde for the 2026 tax year. Tax laws 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.

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