Good to know
Good to Know
- The 'Empresa no Dia' (Company in a Day) one-stop-shop service is available on Sal itself, not just in Praia — you don't need to travel to the capital to register.
- No local partner is required to start a standard business (e.g. a services, digital, or tourism Lda) — 100% foreign ownership is allowed. The main exceptions are fishing (51% local ownership required) and inter-island maritime transport (25% local share required), neither of which is typical for a remote-work-oriented nomad business.
- Even though the legal minimum share capital for a simple Lda is symbolic, plan to deposit a more meaningful amount — banks and business partners in practice expect it, and some sources cite around 100,000–200,000 CVE as a realistic working minimum.
- Don't skip registering your investment with the Banco de Cabo Verde / Cabo Verde TradeInvest — this step isn't needed to incorporate, but failing to do it can block you from legally repatriating profits later.
- A real physical registered office address in Cabo Verde is required for the company; a P.O. box or purely virtual address is not accepted by the registry.
- Budget extra time and money beyond the bare incorporation fees for a local lawyer/notary and for any sector-specific operating license, especially in tourism, retail, or import/export.
- A Sal-based company is not subject to the extra 2% 'fire brigade' surtax that applies in Praia and Mindelo — that's a small but real advantage of incorporating on this island specifically.
- If your projected annual turnover is under CVE 10,000,000, ask your accountant about the simplified micro/small-company regime (4% tax on gross turnover) — it bundles CIT, VAT, and the company's social-security contribution into one simpler payment.
- Sole proprietorship is fast and cheap to set up but carries unlimited personal liability — if you hold significant personal assets elsewhere, most local advisors steer foreigners toward a single-shareholder Lda. instead.
- Don't skip registering your investment with the Bank of Cabo Verde (via Cabo Verde TradeInvest) — this is the step that lets you legally convert and repatriate profits abroad, and it's an easy thing to overlook when you're focused on just getting registered.
- Cape Verde is not a tax haven — it enforces standard anti-money-laundering rules and automatic exchange of information (CRS), and a previous special foreign-investor tax status was abolished back in 2013, so don't structure your plans around outdated 'tax haven' claims you might read online.
- Corporate tax rate figures vary noticeably between sources online (20% to 25%+ depending on which site you check) — get written confirmation of the current applicable rate from a local accountant (contabilista) or lawyer before finalizing any tax planning.
Corporate Income Tax
- Withholding Tax Non Resident Companies
- Non-resident companies without a permanent establishment in Cape Verde are instead subject to withholding tax (WHT) on Cape Verde-source income, at rates set per income category in the Tax Code ranging roughly between 1% and 20% (e.g. up to 15% on payments for services to non-resident entities, and 10% capped rate on technical/consultancy services).
Standard Rate
- Rate Note
- The most authoritative professional source (PwC's Cabo Verde tax summary) cites a standard resident company rate of 20%, with the same 20% applying to permanent establishments of non-resident companies. Other secondary sources (tax-data aggregator sites and local consultancy blogs) cite figures ranging from 22% to 25% for the 'standard' rate — this inconsistency could not be fully resolved from public sources, so treat the exact current headline rate as needing confirmation with a local accountant before relying on it for planning.
- Fire Brigade Surcharge
- A 2% 'Taxa de Incêndio' (fire brigade) surcharge is added to CIT, but only in the municipalities of Praia (Santiago) and Mindelo (São Vicente) — Sal's municipality (Espargos/Santa Maria) is not one of the surcharged municipalities, so a Sal-based company should not be paying that extra 2%.
- Description
- Resident companies (and Cabo Verde permanent establishments of non-resident companies) are taxed under the standard IRPC (corporate income tax) regime on profit less allowable deductions and losses carried forward.
Simplified Regime Micro Small Companies
- Tax Treatment
- CVE 4.00
Micro and small companies pay a Single Special Tax (SST/IUP simplificado) of 4% levied on gross sales/turnover each year, paid quarterly, instead of standard CIT.
- Who Qualifies
- A micro-sized company employs up to five people with annual turnover up to CVE 5,000,000. A small-sized company employs 6–10 people with turnover between CVE 5,000,000 and CVE 10,000,000.
- What It Replaces
- The 4% SST replaces standard corporate income tax, the fire brigade surtax, VAT, and the company's share of social security contributions.
- Relevance For Nomad Businesses
- This simplified regime is the practical route for a small foreign-owned company in Sal (e.g. a guesthouse, dive shop, small services business) that stays under the CVE 10,000,000 annual turnover threshold, since it avoids separate VAT and CIT compliance.
Structure Options For A Foreigner
Public Limited Company
- Local Name
- Sociedade Anónima (S.A.)
- Description
- Used for larger corporate structures. Older sourcing indicates a minimum of two shareholders and a considerably higher minimum share capital (historically cited around CVE 2,500,000, with only a portion paid in upfront and the remainder over several years) — generally overkill for a small foreign-owned nomad-scale business.
Limited Liability Company
- Local Name
- Sociedade por Quotas (Lda.)
- Shareholder Rules
- Current commercial law allows a Lda. to be formed with a single shareholder (no statutory minimum of two), and imposes no nationality or residency requirement on shareholders — a foreigner can own 100% of the company outright, and a non-resident foreign national can serve as the company's manager (gerente) with no local presence required.
- Description
- The most common company form for small and medium businesses in Cape Verde, offering limited liability separate from the owners' personal assets.
- Capital Note
- Older sourcing cites a historical minimum share capital around CVE 200,000 with roughly half required as an initial cash deposit at a local bank, but this figure could not be cross-confirmed against a current primary legal source, so treat it as indicative rather than certain — verify current minimum capital requirements with a local notary/lawyer before incorporating.
Sole Proprietor Freelancer
- Liability
- The proprietor has unlimited personal liability for business debts — there is no legal separation between personal and business assets, which is a meaningful consideration for a foreigner who holds assets in other countries.
- Local Name
- Empresário em Nome Individual
- Who It Suits
- Freelancers and independent contractors doing small-scale service work; registration requirements are minimal compared to forming a company, though formal registration of the business name and tax registration are still advisable.
- Description
- A one-person business form with minimal registration requirements and no minimum capital. It is the simplest and fastest way for a foreigner to start invoicing locally.
Branch Of A Foreign Company
- Description
- It is possible to register a branch of an existing foreign company to operate in Cape Verde without incorporating a new local entity. This exposes the parent company to full liability for the branch's obligations and comes with a more regulated tax/compliance status, and generally suits an already-established international company testing the Cape Verde market rather than a solo founder starting fresh.
Common Entity Types
Sociedade Por Quotas (Lda) – Private Limited Company
- Who Its For
- The most common vehicle for solo foreign entrepreneurs, freelancers-turned-business-owners, and SMEs; permits a single-shareholder (sole-member) structure with one director, who can be the same person and does not need to be a resident.
- Minimum Capital
- Legally symbolic (as low as 1 CVE / €0.01 per statute), though in practice banks and the registry commonly expect a nominal working capital, and some sources cite a de facto minimum of around 100,000–200,000 CVE for credibility with banks/partners.
- Note On Conflicting Figures
- Sources disagree on the practical minimum — flagged internally.
Sociedade Anónima (SA) – Public Limited Company
- Who Its For
- Larger-scale operations or projects seeking outside investors.
- Minimum Capital
- CVE 2,500,000
- Capital Deposit Rule
- Typically around 30% deposited in cash at a local bank at incorporation, with the remainder payable over subsequent years.
- Minimum Shareholders
- At least two shareholders is the figure most consistently cited (one source states five, likely conflating with a different/older rule).
Branch of a Foreign Company
- Who Its For
- An already-established foreign company wanting to test the Cabo Verdean market without creating a new local legal entity; the branch carries the full liability of the parent company.
Governing Law And Agencies
- Primary Law
- Commercial Companies Code (Código das Empresas Comerciais), plus the Investment Law (Law No. 13/VIII/2012, amended by Decree-Law No. 34/2013)
Key Agencies
- Casa do Cidadão – one-stop-shop for registration, on Sal and other main islands
- Instituto do Registo e do Notariado (IRN) / Conservatória do Comércio (Commercial Registry), under the Instituto Nacional de Cabo Verde (INCV)
- Direção Nacional de Receitas do Estado (DNRE) – tax authority, issues the NIF (tax ID)
- Instituto Nacional de Previdência Social (INPS) – social security registration
- Banco de Cabo Verde (central bank) / Cabo Verde TradeInvest – required investment registration for profit repatriation
- CENTIF – financial intelligence unit overseeing beneficial-ownership disclosure
Local Partner Or Sponsor Requirement
- Summary
- No mandatory local partner or sponsor for most sectors.
- General Rule
- Fully legal and regulated
- Other Notes
- Foreign investors may own 100% of a locally incorporated firm without restriction in almost every other sector; there is no residency or nationality condition for shareholders or directors in the standard Lda structure.
- Citation Note General
- Cabo Verdean law guarantees equal treatment between foreign and local investors, and no local partner is required, except in specific sectors like fishing or certain maritime transport.
Details
- Cabo Verdean law guarantees equal treatment between foreign and local investors.
Sector Exceptions
- Fishing: foreign investors are authorized to create 100 percent private companies, except in the fisheries sector, for which one or more Cabo Verdean partners must hold a minimum share of 51 percent.
- Inter-island maritime transport: requires a local share of at least 25 percent.
VAT
- Standard Rate
- 15% VAT applies to most goods and services; essential food, healthcare, and education are exempt, and exports are zero-rated.
- Applicability
- VAT does not apply separately to companies taxed under the micro/small simplified SST regime, since the SST substitutes for it.
Profit Repatriation Note
- Description
- To legally convert profits into foreign currency and transfer them abroad, the investment should be registered with the Bank of Cabo Verde (via Cabo Verde TradeInvest). Skipping this step is a commonly cited pitfall, since without it the central bank can refuse capital outflows, and authorization for an international transfer can otherwise take up to about 30 days even when properly registered.
Tax Incentives Disclaimer
Various sector-specific incentive regimes exist (e.g. reduced rates or exemptions for tourism, renewable energy, or 'internationalisation' investment contracts, and exemptions tied to Cape Verdean emigrant-investor status), but these require a specific investment contract or qualifying status approved by the Council of Ministers — they are not an automatic benefit a small foreign-owned business in Sal would receive by default.
Registration Process Overview
- Authority
- Registration runs through the Single Window for Business Registration (JUN / Balcão Único), coordinating with the Commercial Registry Office (Conservatória do Registo Comercial), the tax authorities (for the NIF), and INPS (social security).
- Banking Step
- A business bank account can only be opened after the company is registered with the Commercial Registry, and initial capital typically must be deposited as part of forming the company.
- Fast Track Option
- A same-day incorporation service branded 'Empresa no Dia' exists to speed up company registration for straightforward cases, though the practical timeline still depends on the completeness of the file — end-to-end setup (including obtaining the NIF and completing capital deposit) commonly takes anywhere from about one day for the simplest sole-proprietor cases up to several weeks for more complex company formations.
Filing And Payment Obligations
- Annual Return
- Corporate taxpayers under the standard regime must self-assess and file their annual CIT return by 31 May of the year following the end of the tax year (assuming a calendar tax year).
- Advance Payments
- Standard-regime companies must make three advance payments toward the current year's tax liability, due end of March, end of July, and end of November, calculated as 30%, 30%, and 20% respectively of the prior year's tax liability.
- Other Registrations
- All businesses — sole proprietors and companies alike — must obtain a NIF (tax ID number) and register with INPS (national social security institute); NIF issuance itself typically takes about 3–7 business days once applied for.
- Simplified Regime Payments
- Micro and small companies under the SST regime make quarterly pre-payments at the 4% rate on gross turnover instead of the standard three-instalment schedule.
Scope Note
Company incorporation in Cabo Verde is governed by national law (not municipal to Sal), but the 'Empresa no Dia' one-stop-shop service is physically available on Sal island, so a foreigner can complete registration locally rather than traveling to Praia.
Realistic Timeline
- Core Registration Via Empresa No Dia
- As little as 1 day with complete documentation; commonly 1–5 business days in practice.
- Full Process Incl Tax Social Security And Licensing
- Typically 1–4 weeks depending on entity complexity and whether a sector license is required (retail licenses can be as fast as 48 hours; regulated sectors like tourism or finance take longer).
Incorporation Steps
Incorporation Steps
- 1. Reserve and clear the company name through the Commercial Registry / Casa do Cidadão (uniqueness check).
- 2. Draft the articles of association (objectives, management structure, shareholder rights) — often with notarial authentication.
- 3. Deposit the required share capital (or symbolic amount for an Lda) into a Cabo Verdean bank account and obtain proof of deposit.
- 4. Submit documents to the Commercial Registry via the 'Empresa no Dia' service at Casa do Cidadão (identification, articles, name reservation confirmation, capital deposit proof, power of attorney if shareholders are not present in person).
- 5. Registration triggers automatic assignment of a Tax Identification Number (NIF) with the DNRE and Social Security registration with INPS.
- 6. Publication of the incorporation notice in the Boletim Oficial (Official Gazette).
- 7. Obtain any sector-specific operating license (retail licenses can be simplified to 48 hours; tourism, industry, or finance require fuller review).
- 8. Register the foreign investment with the Banco de Cabo Verde / Cabo Verde TradeInvest — this step is not required to incorporate, but skipping it can block future profit repatriation.
Typical Cost Breakdown
- Name Reservation
- CVE 10,000
- NIF Legal Entity Fee
- CVE 2,779
- Official Gazette Publication
- CVE 5,000
- SA Minimum Capital Requirement
- CVE 2,500,000
- Registration Fee Via Empresa No Dia
- CVE 10,000
Some sources cite a wider practical range of roughly 2,500–25,000 CVE depending on entity type/sector.
- Rough Total Basic Lda Govt Fees Only
- CVE 30,000
Excludes notary/legal fees, bank charges for capital deposit (~2,000 CVE), and any sector license fee.
AI-generated estimateData refreshed July 2026
This section has no cited sources.
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Data last updated July 2026 · Verify anything important.