Feeling boxed in by high corporate taxes and endless compliance headaches? You’re not alone. For entrepreneurs and digital nomads seeking a smarter, more agile approach to global business, understanding the corporate tax regime in Cape Verde (CV) can be a game-changer. This guide delivers a clear, data-driven breakdown of Cape Verde’s 2025 corporate tax system—so you can make informed decisions, optimize your tax burden, and keep more of what you earn.
Corporate Tax in Cape Verde: 2025 Snapshot
Cape Verde offers a straightforward, flat-rate corporate tax regime. Here’s what you need to know for 2025:
| Tax Feature | Details |
|---|---|
| Tax Type | Flat rate |
| Standard Corporate Tax Rate | 21% (applied to corporate profits) |
| Currency | Cape Verdean Escudo (CVE) |
| Assessment Basis | Corporate profits |
| Progressive Brackets | None (flat rate applies to all profits) |
| Surtaxes | 2% Fire brigade surcharge in Praia (Santiago) and Mindelo (São Vicente) |
What Does This Mean in Practice?
Let’s say your Cape Verdean company earns CVE 10,000,000 in profits (about $97,000 USD at an exchange rate of 1 CVE ≈ 0.0097 USD). Here’s how your tax liability would break down in 2025:
- Standard corporate tax: 21% of CVE 10,000,000 = CVE 2,100,000 (≈ $20,370 USD)
- Fire brigade surcharge (if applicable): 2% of CVE 2,100,000 = CVE 42,000 (≈ $407 USD)
- Total tax (in Praia or Mindelo): CVE 2,142,000 (≈ $20,777 USD)
Outside Praia and Mindelo, you skip the surcharge and pay only the flat 21%.
Pro Tips: Optimizing Your Corporate Tax in Cape Verde
While Cape Verde’s system is refreshingly simple, a few strategic moves can help you minimize your effective tax rate and maximize flexibility.
Pro Tip 1: Choose Your Municipality Wisely
- Before incorporating, research whether your business will be based in Praia or Mindelo.
- If you can operate elsewhere, you’ll avoid the 2% fire brigade surcharge—an easy win for your bottom line.
Pro Tip 2: Leverage the Flat Rate for Predictable Planning
- With no progressive brackets, you can accurately forecast your tax liability regardless of profit size.
- Use this predictability to plan reinvestment, dividends, or international expansion without nasty surprises.
Pro Tip 3: Convert and Compare
- Always convert CVE liabilities to USD (or your home currency) for apples-to-apples comparisons with other jurisdictions.
- Factor in the absence of complex brackets or hidden surcharges outside the two main cities—Cape Verde’s regime is among the most transparent in the region.
Key Takeaways for 2025
- Cape Verde’s corporate tax is a flat 21% on profits, with a 2% surcharge only in Praia and Mindelo.
- No progressive brackets or complicated deductions—what you see is what you get.
- Location matters: base your company outside the two main cities to avoid extra costs.
- Transparency and predictability make Cape Verde attractive for entrepreneurs seeking simplicity and control.
For up-to-date exchange rates, check XE.com. For official tax guidance, consult the Cape Verdean Directorate-General for Taxation.