This article presents a comprehensive overview of the individual income tax structure in Cabo Verde for the 2025 tax year. Readers will find a distilled guide on tax rates, progressive brackets, the assessment basis, and essential considerations unique to Cabo Verde’s current tax system.
Overview of Cabo Verde Individual Income Tax Framework
Cabo Verde uses a progressive income tax system, meaning tax rates increase with higher income levels. All individual income taxes are assessed directly on the taxpayer’s total income, denominated in the national currency, the Cabo Verdean Escudo (CVE).
Key Facts for 2025
- Tax Structure: Progressive
- Assessment Basis: Tax is applied on total individual income
- Currency: Cabo Verdean Escudo (CVE)
- Type of Tax: Income tax on individuals, with rates applied according to income brackets
Income Tax Brackets and Rates in 2025
Below is a detailed table outlining the current income tax brackets in Cabo Verde. For international comparison, an indicative conversion to USD has been added, using an approximate rate of 1 USD = 104 CVE (as of early 2025).
| Income Range (CVE) | Income Range (USD) | Tax Rate (%) |
|---|---|---|
| 0 – 960,000 CVE | $0 – $9,230 | 16.5% |
| 960,001 – 1,800,000 CVE | $9,231 – $17,308 | 23.1% |
| 1,800,001 CVE and above | $17,309 and above | 27.5% |
There are no publicly reported surtaxes or additional levies associated with personal income tax in Cabo Verde, based on the latest available information.
Assessment and Taxation Details
The tax is calculated annually based on a taxpayer’s total reported income. Since the tax structure is progressive, higher earnings are taxed at correspondingly higher percentages. No public information is available concerning minimum holding periods for income, meaning tax is applied according to annual earnings regardless of the income source’s duration.
Understanding Tax Bracket Application
Each bracket applies only to the portion of income within its range. For instance, if an individual earns 2,000,000 CVE in 2025, their income up to 960,000 CVE is taxed at 16.5%, the next portion up to 1,800,000 CVE at 23.1%, and any amount above that at 27.5%. This approach ensures a progressive and equitable application of tax obligations.
Pro Tips for Navigating Cabo Verde Individual Income Tax
- Maintain Clear Income Records: Keep precise and organized records of all income sources. This simplifies the annual assessment and supports any verification requests from the tax authority.
- Monitor Bracket Thresholds: Recognize when income approaches the next tax bracket. This can help with accurate withholding or anticipated payment calculations.
- Utilize Digital Filing Systems: Where available, use official electronic filing platforms provided by Cabo Verdean tax authorities to streamline reporting and reduce administrative burden.
- Consult Regularly with Qualified Local Experts: Engage periodically with a professional advisor familiar with Cabo Verde tax law to stay informed on rule changes that may affect your tax liability.
- Be Mindful of Deadlines: Always confirm annual filing deadlines and payment dates; penalties for late submission may apply.
Further Reading & Official Sources
For direct and up-to-date guidance on individual income taxation and compliance in Cabo Verde, consult the main page of the Ministry of Finance of Cabo Verde.
In summary, Cabo Verde’s income tax system for 2025 is straightforward, employing a clear set of progressive rates without additional surtaxes. Accurate record-keeping, bracket awareness, and regular information review are crucial. Staying informed through official channels and seeking professional advice ensure compliance and optimal handling of your fiscal duties in Cabo Verde.