Tax Treaties in Sao Tome and Principe

Cross-border taxation in Sao Tome and Principe covers how the country taxes foreign investments, income from abroad, and transactions between related parties. This guide provides an overview of the key rules and considerations for international investors.

Withholding Taxes

Sao Tome and Principe imposes withholding tax on payments to non-residents:

Income Type Domestic Rate
Dividends 10%
Interest 10%
Royalties 15%
Service Fees 15%
Rental Income 15%

Tax Treaties (DTTs)

Sao Tome and Principe has limited double tax treaty coverage. As of 2026, the country has signed a limited number of tax treaties, primarily with Portugal. Where treaties apply, they may reduce withholding tax rates and provide mechanisms for resolving double taxation disputes.

Transfer Pricing

Sao Tome and Principe follows the arm's length principle for related-party transactions. Transfer pricing documentation is required for:

Foreign Tax Credit

Resident taxpayers can claim a foreign tax credit for taxes paid abroad on foreign-source income. The credit is limited to the Sao Tome and Principe tax payable on that income.

Exchange of Information

Sao Tome and Principe participates in international tax cooperation. The country is not currently on any major tax haven blacklists but is working toward greater transparency.

Inbound Investment

Foreign investors in Sao Tome and Principe are subject to:

Outbound Investment

Sao Tome and Principe residents investing abroad are taxed on their worldwide income, with foreign tax credits available.

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