Cape Verde doesn’t make headlines in the offshore world. It’s not the Caymans. It’s not Dubai. But if you’re looking at West Africa and need a simple, legitimate structure to invoice clients without incorporating a full company, the archipelago offers something surprisingly pragmatic: the Empresário em Nome Individual under the REMPE regime.
I’ll be direct. This isn’t a zero-tax setup. But it’s streamlined, and for micro-entrepreneurs operating below a certain threshold, it’s one of the few African jurisdictions where the bureaucracy doesn’t actively try to suffocate you.
What Exactly Is the Empresário em Nome Individual?
In English, we’d call it a Sole Trader. You’re not creating a separate legal entity. You are the business. Your personal assets are on the line, but you get to operate under your own name (or a commercial name) and issue invoices legally.
Cape Verde’s twist? They’ve bundled this status into the REMPE — the Regime Especial das Micro e Pequenas Empresas. That’s the Special Regime for Micro and Small Enterprises. It’s designed to keep small operators inside the formal economy without drowning them in compliance.
The threshold is clear: your annual turnover must stay below 5,000,000 CVE (approximately $48,000 USD). Cross that line, and you’re out of the simplified regime. You’ll be dealing with standard corporate tax rules, VAT registration, and all the paperwork that comes with it.
The Tax Structure: Unified and Transparent
Here’s where Cape Verde gets interesting. Under REMPE, you don’t juggle multiple taxes. You pay a single levy: the TEU (Taxa Especial Única), or Unified Special Tax.
The rate? 4% of your gross quarterly turnover.
This replaces:
- Income Tax (IUR)
- VAT
- Municipal fire fees (yes, that’s a thing)
You read that correctly. 4% on gross revenue, not profit. No deductions for expenses. No complex accounting. You invoice 1,000,000 CVE ($9,600) in a quarter? You owe 40,000 CVE ($384).
Simple. Brutal if your margins are tight. Beautiful if your costs are minimal and you’re selling services or digital products.
| Item | Details |
|---|---|
| Tax Rate | 4% on gross quarterly turnover |
| Annual Turnover Limit | 5,000,000 CVE (~$48,000) |
| Taxes Replaced | Income Tax, VAT, Municipal Fire Fees |
| Payment Frequency | Quarterly |
Social Security: The Hidden Anchor
Now, the part they don’t shout about on government portals.
You’re required to register with INPS (Instituto Nacional de Previdência Social) as a self-employed individual. The contribution rate is typically 11% of the conventional remuneration base.
What’s the “conventional remuneration base”? It’s not your actual income. It’s a standardized figure set by the government, usually pegged to minimum wage or sector averages. This means your social security bill is somewhat predictable, but it also means you’re paying contributions even if you have a terrible quarter.
I don’t have the exact 2026 base amounts in front of me — the INPS adjusts these periodically. But expect this to add another 10-15% effective cost on top of your TEU. Factor it in. Many new sole traders get blindsided by this.
Registration: Less Painful Than You’d Expect
Cape Verde has invested in its Casa do Cidadão (Citizen’s House) — one-stop shops for administrative procedures. You can register your sole proprietorship status there, often in a single visit if your paperwork is in order.
You’ll need:
- Valid ID (passport or Cape Verdean identity card)
- Proof of address
- Tax identification number (NIF)
- Declaration of the intended business activity
Processing times vary by island. Praia and Mindelo are faster. Smaller islands? Bring patience.
The official resources are scattered. The DNRE (Direção Nacional das Receitas do Estado) oversees tax regimes. The Casa do Cidadão handles registrations. INPS manages social security. Each has its own portal, its own forms, its own rhythm.
Welcome to Cape Verde.
Who Should Consider This?
Let’s be practical.
This structure works if:
- You’re a digital freelancer or consultant with low overhead.
- You’re already in Cape Verde (resident or planning to be) and need local invoicing capability.
- Your clients require formal invoices from an African jurisdiction for compliance or optics.
- You’re testing a business idea and want minimal setup cost.
It does not work if:
- You have high operating costs. Remember: 4% on gross, not net.
- You need limited liability. You’re personally exposed here.
- You’re doing cross-border e-commerce at scale. The turnover limit will choke you fast.
- You want to avoid social security contributions. They’re mandatory.
The Bigger Picture: Cape Verde’s Tax Environment
Cape Verde isn’t trying to be the next offshore haven. It’s a small island nation trying to formalize its economy, attract foreign investment, and keep the IMF happy. The REMPE regime is part of that — a carrot to get micro-entrepreneurs on the books.
Corporate tax for standard companies is around 22%. VAT is 15%. So the 4% TEU is genuinely favorable if you qualify. But the state is also tightening enforcement. The days of operating informally without consequence are fading.
If you’re considering Cape Verde as part of a broader flag theory strategy, this sole proprietorship status is best viewed as a complementary tool, not a cornerstone. Pair it with residency in a territorial tax country, bank accounts elsewhere, and clients in third jurisdictions. Don’t put all your eggs in the Praia basket.
My Take
The Empresário em Nome Individual under REMPE is a functional, no-nonsense option for small-scale operators in Cape Verde. It won’t save you from taxation, but it won’t drown you in paperwork either.
The 4% TEU is competitive. The turnover cap of 5,000,000 CVE (~$48,000) is reasonable for solopreneurs. The social security obligation is the real cost to watch — it’s mandatory, it’s not trivial, and it’s easy to underestimate.
If you’re already in Cape Verde or planning to spend significant time there, this is worth setting up. If you’re shopping jurisdictions purely for tax optimization, there are lighter touches elsewhere.
I am constantly auditing these jurisdictions. If you have recent official documentation or firsthand experience with the REMPE registration process or INPS contribution calculations in 2026, please send me an email or check this page again later, as I update my database regularly.
Stay skeptical. Stay informed. And remember: the best structure is the one that works for your specific situation, not the one that sounds best on paper.