This article provides a clear, updated overview of tax residency rules for individuals in Cabo Verde for 2025. The framework outlined below details who is considered tax resident, which is crucial for understanding local taxation, legal obligations, and compliance.
Key Rules for Tax Residency in Cabo Verde (2025)
Cabo Verde applies straightforward and practical tax residency rules. In 2025, both the 183-day physical presence test and the habitual residence rule are in effect. There is no minimum days-of-stay threshold beyond these main rules, and other common international tests such as center of economic interest, center of family, citizenship, or extended temporary stay are not considered relevant for the Cabo Verdean context at this time.
| Rule | Applies in 2025 | Description |
|---|---|---|
| 183-Day Presence Test | Yes | An individual is tax resident if present in Cabo Verde for 183 days or more within any calendar year. |
| Habitual Residence | Yes | If an individual spends fewer than 183 days in Cabo Verde but maintains a habitual residence there as of December 31, they are still considered a tax resident. |
| Center of Economic Interest | No | Not considered for tax residency status in 2025. |
| Center of Family Life | No | Does not apply under current legislation. |
| Citizenship | No | Being a Cabo Verdean citizen does not determine tax residency in itself. |
| Extended Temporary Stay | No | Temporary stays beyond a typical period do not affect residency status unless one of the above criteria is met. |
The 183-Day Rule
The core of Cabo Verde’s personal tax residency framework is the 183-day rule. If you spend 183 days or more in Cabo Verde during the calendar year 2025, you are considered a tax resident for that year regardless of your citizenship, ties to other countries, or business activities abroad. This aligns Cabo Verde with many jurisdictions worldwide that rely on clear-cut physical presence as the primary determining factor for residency.
Habitual Residence Test
Even if you spend fewer than 183 days in the country in 2025, you can still be classified as tax resident. Cabo Verde recognizes a second threshold: individuals who maintain a habitual residence in the country as of December 31 are deemed tax resident, even without meeting the annual day-count threshold. The law does not provide a detailed definition of “habitual residence,” but this generally denotes a stable dwelling or a factual long-term living arrangement in Cabo Verde at the close of the tax year.
Unapplied Tests
Tests that are common in many other countries—such as the tie-breaker based on economic interest or family connections—are not part of the official legal framework in Cabo Verde as of 2025. Similarly, your citizenship alone does not make you a tax resident. Temporary or seasonal stays are only relevant if the key criteria above are met.
Summary Table: Cabo Verde Tax Residency Criteria (2025)
| Criteria | Status in 2025 | Details |
|---|---|---|
| Days of Stay | No minimum globally, but 183 days activates residency | Presence in Cabo Verde for 183+ days – considered resident |
| Habitual Residence | Applies | If house/dwelling is considered habitual residence on December 31, residency applies regardless of days spent |
| Other Economic or Family Tests | Does not apply | These are currently not recognized triggers for status |
Additional Considerations
One critical note from the official guidance is that, in some cases, even individuals spending very little time in the country may be classified as residents if their home in Cabo Verde is seen as their habitual residence at year’s end. Maintaining, leasing, or owning a property and demonstrating that it is your usual base could thus be determinative for tax status, regardless of where you physically spend most of the year.
Pro Tips for Navigating Cabo Verde Tax Residency
- If you plan extensive travel, track your days precisely; crossing the 183-day mark automatically triggers residency.
- Consider how Cabo Verdean authorities might view your main home: if it’s readily available to you as of December 31 and appears to be your usual residence, residency may apply even with limited presence.
- Retain documentation proving periods of absence or presence, such as flight tickets or rental contracts, in case of audit questions on residency.
- If your living arrangements change during the year (moving out, leasing property long term), record these changes and their effective dates for clear evidence.
Official Government Resources
For authoritative information and updates, refer to the Cabo Verde Ministry of Finance (Direcção-Geral das Contribuições e Impostos) official website.
To summarize, Cabo Verde’s tax residence framework in 2025 is driven by the classic 183-day rule and a practical habitual residence test at year-end. There are no recognized economic, family, or citizenship-based triggers. Anyone considering time in Cabo Verde for personal or professional purposes should pay close attention to both their physical presence and the status of their local residence to avoid unexpected residency classification. Keeping careful records and understanding these clear criteria are the keys to safe, compliant tax planning.