Cape Verde — Tax Guide, Residency & Cost of Living for Expats

Africa · West AfricaUpdated 2026

Tax Score

52/100Worldwide

Tax Data

Income Tax0% – 27.5%
Corporate Tax25%
Capital Gains1%
VAT/GST15%
Wealth TaxNo
Inheritance TaxNo

Residency & Visas

Golden VisaUSD 500,000
Digital Nomad VisaYes
Min. Residency CostUSD 500,000
Citizenship in5 years

Cost of Living & Quality of Life

Cost of Living Index45
Safety6.5/10
Internet22 Mbps
Healthcare5.2/10
Gasoline$1.75/L

Tax Overview

Cape Verde uses a worldwide tax system with moderate rates. While residents are taxed on global income, rates are competitive compared to many developed nations.

Personal Income Tax

Personal income tax in Cape Verde ranges from 0% – 27.5% progressively.

Corporate & Capital Gains

The corporate tax rate is 25%. Capital gains are taxed at 1%.

Indirect Taxes & Wealth

VAT/GST is 15%, moderate by international standards. There is no wealth tax. There is no inheritance tax.

Crypto & Digital Assets

Cape Verde takes a standard approach to crypto taxation (score 3/5). Gains are generally treated as capital gains or ordinary income.

Compare with other countries

Residency Guide

Relocating to Cape Verde is relatively straightforward. The country offers several residency pathways for foreigners.

Visa Options

Digital Nomad Visa: Cape Verde offers a dedicated visa for remote workers, with processing taking approximately 3 months. Golden Visa: Available with a minimum investment of USD 500,000.

Investment Requirements

The golden visa requires a minimum investment of USD 500,000. Residency by investment requires a minimum of USD 500,000.

Path to Citizenship

The path to citizenship in Cape Verde takes approximately 5 years — a moderate timeline by international standards.

Practical Considerations

As a non-LATAM destination, applicants should consider potential language barriers and cultural differences. Working with a local immigration attorney and verifying apostille/legalization requirements for documents is recommended.

Also consider: Mauritius, Seychelles, Libya

Lifestyle

Cape Verde has a moderate cost of living, with good standards at a reasonable price.

Cost of Living

With an index of 45, Cape Verde offers a balance between quality and price. Expenses are lower than New York City (index 100), but quality of life is high.

Safety & Infrastructure

A safety score of 6.5/10 indicates a generally safe environment, with normal precautions recommended. Internet speed of 22 Mbps — may be limiting for video calls and intensive remote work.

Healthcare

With a score of 5.2/10, the healthcare system has limitations. International private health insurance is highly recommended for expats.

Quality of Life

Cape Verde has a Human Development Index of 0.662 (classification: medium). It is important to consider differences in service quality depending on location.

Data: 2026 · Source: tax_foundation,pwc,manual

Pros & Cons

Pros

  • Low capital gains tax (1%)
  • No wealth tax
  • No inheritance tax
  • Digital nomad visa available
  • Residency by investment (from USD 500,000)
  • Affordable cost of living (index 45)

Cons

  • Worldwide tax system — global income taxed
  • Private health insurance recommended (5.2/10)
  • Slow internet (22 Mbps)
  • High minimum investment for residency (USD 500,000)

Frequently Asked Questions

Cape Verde operates under a worldwide tax system: taxes residents on worldwide income, regardless of where it is earned. The top personal income tax rate is 27.5%.

About this guide

Researched and maintained by the TuLugar team, based in Asunción, Paraguay.

Data sourced from PwC, Numbeo, UNDP, and Ookla.

Compare with Latin America

Looking for alternatives in LATAM? Compare with the best low-tax destinations.

View the full map