Feeling overwhelmed by the maze of international tax rules? You’re not alone. For digital nomads and entrepreneurs considering Cabo Verde as a potential base in 2025, understanding the country’s tax residency framework is crucial for optimizing your global tax strategy and protecting your financial freedom. This guide breaks down Cabo Verde’s tax residency rules with clarity, precision, and actionable insights—so you can make informed decisions and avoid costly surprises.
Understanding Cabo Verde’s Tax Residency Rules in 2025
Cabo Verde’s approach to tax residency is refreshingly straightforward compared to many jurisdictions. The country’s framework is built around two primary criteria: the 183-day rule and the habitual residence rule. Let’s examine how each applies and what it means for your tax planning.
Key Tax Residency Criteria: At a Glance
| Rule | Applies in Cabo Verde? | Details |
|---|---|---|
| 183-Day Rule | Yes | Stay 183 days or more in Cabo Verde during the tax year |
| Habitual Residence Rule | Yes | Maintain a habitual residence as of 31 December, even if you spend less than 183 days in the country |
| Center of Economic Interest | No | Not considered for tax residency |
| Center of Family Life | No | Not considered for tax residency |
| Citizenship | No | Citizenship alone does not trigger tax residency |
| Extended Temporary Stay | No | No special rule for extended temporary stays |
How the 183-Day Rule Works
Pro Tip #1: If you spend 183 days or more in Cabo Verde during the calendar year, you are automatically considered a tax resident for 2025. This is a classic threshold used by many countries, but it’s important to track your days carefully—especially if you’re splitting time between multiple jurisdictions.
Habitual Residence: The Subtle Trap
Pro Tip #2: Even if you spend less than 183 days in Cabo Verde, you can still be deemed a tax resident if you maintain a residence that is considered your habitual residence as of 31 December. In practice, this means that simply keeping a home or apartment in Cabo Verde—even if you’re rarely there—could trigger tax residency status.
Example: Imagine you spend only 90 days in Cabo Verde in 2025, but you keep a furnished apartment there and return every year. If that apartment is considered your habitual residence on December 31, you may be classified as a tax resident, regardless of your actual time spent in the country.
What’s Not Considered for Tax Residency in Cabo Verde?
- Center of Economic Interest: Unlike some countries, Cabo Verde does not assess where your main business or economic activities are located when determining tax residency.
- Center of Family Life: Your family’s location is not a factor in the residency test.
- Citizenship: Merely holding Cabo Verdean citizenship does not make you a tax resident.
- Extended Temporary Stay: There is no special rule for those who stay for extended periods without establishing habitual residence.
Checklist: Optimizing Your Tax Residency in Cabo Verde (2025)
- Track Your Days: Keep a detailed log of your physical presence in Cabo Verde. Crossing the 183-day threshold means automatic tax residency.
- Review Your Housing Situation: If you maintain a residence in Cabo Verde, assess whether it could be deemed your habitual residence as of December 31. Consider the risks of keeping a permanent home if you wish to avoid residency.
- Document Your Global Ties: Since Cabo Verde does not use economic or family center rules, focus on minimizing ties that could be interpreted as habitual residence.
- Plan Year-End Moves: If you’re close to the 183-day mark or have a habitual residence, consider your location and housing status as the year closes.
Summary: Key Takeaways for 2025
- Cabo Verde’s tax residency hinges on the 183-day rule and habitual residence as of December 31.
- Economic, family, and citizenship ties are not relevant for residency status.
- Maintaining a home in Cabo Verde—even with minimal physical presence—can trigger tax residency.
- Careful planning and documentation are essential for digital nomads and entrepreneurs seeking to optimize their global tax footprint.
For more details on international tax residency and digital nomad strategies, consult reputable resources such as the OECD’s tax residency portal or seek advice from a qualified cross-border tax advisor.