Feeling boxed in by high taxes and endless bureaucracy? If you’re an entrepreneur or digital nomad searching for a more flexible, low-friction way to operate your business, Cabo Verde’s approach to sole proprietorship in 2025 deserves a closer look. Let’s break down the facts, the numbers, and the practical steps—so you can make an informed, data-driven decision about your next move.
Understanding Sole Proprietorship in Cabo Verde: The Empresário em Nome Individual
Cabo Verde offers a straightforward sole proprietorship status known as Empresário em Nome Individual. This legal form is designed for individuals who want to run a business in their own name, without the complexity of forming a separate legal entity. It’s a popular choice among small traders, freelancers, and service providers who value simplicity and direct control.
Key Features at a Glance
| Feature | Details (2025) |
|---|---|
| Status Name | Empresário em Nome Individual |
| Who Can Register? | Any individual (citizen or resident) |
| Legal Entity? | No (personal liability applies) |
| Registration | Casa do Cidadão or government portal |
| Taxation | Personal Income Tax (IUR): 16.5%–27.5% progressive rates |
| Simplified Tax Regime | Available for turnover < 2,000,000 CVE (~$19,500 USD) |
| Social Security | Mandatory contributions |
How the Empresário em Nome Individual Status Works
This status is not just a theoretical option—it’s actively used by locals and expats alike. Registration is intentionally streamlined, with the process handled either in person at the Casa do Cidadão or online via the official government portal. There’s no need to create a separate company, which means fewer administrative headaches and lower ongoing costs.
Pro Tip #1: Registration Checklist
- Gather your identification documents (passport or national ID).
- Visit the Casa do Cidadão or use the online portal.
- Complete the registration form for Empresário em Nome Individual.
- Submit supporting documents as required (proof of address, tax number, etc.).
- Pay any applicable registration fees.
Taxation: What You Need to Know in 2025
Sole proprietors in Cabo Verde are taxed under the Imposto Único sobre o Rendimento das Pessoas Singulares (IUR), which is a progressive personal income tax. For 2025, rates range from 16.5% to 27.5%, depending on your income bracket. This is a significant consideration for anyone optimizing their global tax footprint.
Pro Tip #2: Leverage the Simplified Tax Regime
If your annual turnover is below 2,000,000 CVE (about $19,500 USD), you may qualify for the Regime Simplificado. This regime streamlines tax calculation and reporting, reducing both your paperwork and your risk of compliance errors.
- Estimate your annual turnover honestly—don’t exceed the threshold.
- Apply for the simplified regime during registration or at the start of the fiscal year.
- Keep clear records to prove eligibility if audited.
Pro Tip #3: Don’t Overlook Social Security
All sole proprietors must contribute to Cabo Verde’s social security system. While this is a non-negotiable state cost, it’s also a predictable one—so factor it into your cash flow planning from day one.
Personal Liability: The Trade-Off
One important caveat: as an Empresário em Nome Individual, you are personally liable for all business obligations. This means your personal assets could be at risk if your business incurs debts or legal claims. For many digital nomads and location-independent entrepreneurs, the simplicity and low cost outweigh this risk—but it’s a trade-off to consider carefully.
Summary: Is Cabo Verde’s Sole Proprietorship Right for You?
- Accessible: Registration is quick and open to individuals, with minimal bureaucracy.
- Tax-Optimized: Progressive rates (16.5%–27.5%) and a simplified regime for small businesses.
- Transparent Costs: Social security is mandatory but predictable.
- Personal Liability: No legal separation between you and your business.
For those seeking a nimble, low-overhead way to operate in 2025, Cabo Verde’s Empresário em Nome Individual status is a compelling option—especially if you value autonomy and streamlined compliance over corporate formality.
For more details, consult the official resources: