This article provides a detailed overview of the wealth tax regulations as applied in Cabo Verde (CV) for individuals in 2025. The information below focuses on the structure, rates, and practical implications of Cabo Verde’s wealth tax, based strictly on published data for the current regulatory environment.
Key Features of the Cabo Verde Wealth Tax in 2025
Wealth tax in Cabo Verde is assessed specifically on property holdings, rather than the total net worth considering all asset types. The system utilizes a flat tax rate with no progressive brackets currently in place, and is applicable once certain property is owned, subject to the details provided below.
| Assessment Basis | Type | Flat Rate (%) | Currency (CVE) | Progressive Brackets | Additional Surtaxes |
|---|---|---|---|---|---|
| Property | Flat | 1.5% | CVE (Cape Verdean Escudo) | None | None |
Assessment Basis
The wealth tax base in Cabo Verde, as of 2025, is restricted to property. This means only property assets are considered for the purposes of wealth taxation; other classes of assets such as financial investments, cash holdings, or collectibles are not included based on the available policy framework. Assessment is typically determined by the property value minus recognized liabilities tied directly to the property.
Flat Tax Rate
The flat rate of 1.5% is applied uniformly to applicable property holdings, with no progressive structure or bracketed system. For example, if an individual owns property valued at CVE 10,000,000, the annual wealth tax liability would be calculated as follows:
- Taxable amount: CVE 10,000,000
- Tax rate: 1.5%
- Annual tax owed: CVE 150,000
(If displaying amounts in USD, at a conversion rate of 1 CVE ≈ 0.0098 USD as of early 2025, CVE 150,000 ≈ $1,470)
No Progressive Brackets or Surtaxes
Cabo Verde’s approach to wealth taxation does not utilize a progressive bracket system. There are also no surtaxes or additional levies currently in force that would apply on top of the standard 1.5% rate. This contributes to a straightforward and predictable tax calculation for property owners with no thresholds or multi-tiered structures to consider.
Other Regulatory Considerations
There are no stipulated minimum or maximum holding periods for property within the disclosed wealth tax policy. Taxpayers are thus subject to the flat rate regardless of how long they have held a given property asset, based on current 2025 regulations.
Summary Table: Cabo Verde Wealth Tax Fundamentals (2025)
| Category | Details |
|---|---|
| Tax Base | Property |
| Applicable Rate | 1.5% (Flat) |
| Currency | CVE (Cape Verdean Escudo) |
| Progressive Brackets | Not Applicable |
| Surtaxes | Not Applicable |
| Minimum/Maximum Holding Period | Not Specified |
Pro Tips for Managing Wealth Tax in Cabo Verde
- Review property valuations annually to ensure the tax assessment accurately reflects current market value, minimizing potential overpayment.
- Maintain clear documentation of any liabilities directly related to property assets, as these may reduce your taxable base if recognized under local tax rules.
- Since there are no minimum holding periods, consider timing your property acquisitions and disposals around your individual tax planning needs.
- Stay informed of any updates or reforms by following official announcements on the Cabo Verde Ministry of Finance website, as regulations may change or exemptions may be introduced.
Further Information
For authoritative updates and complete policy details, the official resource is the Cabo Verde Ministry of Finance homepage. This is the primary channel for notifications about future changes and procedural guidance on wealth tax compliance.
In summary, Cabo Verde applies a straightforward 1.5% flat wealth tax on property as of 2025, without progressive brackets, additional surtaxes, or specified holding periods. Careful documentation, regular valuation updates, and monitoring policy changes are prudent steps for all property holders. Remaining up-to-date with official resources ensures compliance and helps optimize your tax planning under the current regime.