🇨🇻 Cabo Verde tax

• On: Gross monthly salary (category A) for the withholding at source
• Limit: CVE 37k/mo ≈ $370

Employee salary in Cabo Verde is taxed by final monthly withholding at source unless the employee opts for an annual return; under the annual regime the rates are 16.5% up to CVE 960,000, (≈ $9,730) 23.1% up to CVE 1,800,000 (≈ $18,200) and 27.5% above, after an exempt amount of CVE 220,000 (≈ $2,230). Residents are taxed on worldwide income and non-residents on Cabo Verde income. ^{1 2 3}

Taxed on

Gross monthly salary (category A) for the withholding at source; taxable income after specific deductions for the annual regime. Residents are taxed on income from all sources; non-residents on Cabo Verde-source income.

Who it applies to

• Employee salary and pensions (category A) are taxed by withholding at source, which is final (liberatory) unless the employee opts to aggregate the income in an annual return (Articles 43, 46 and 70 of the IRPS Code).
• Monthly withholding on employee salary, Rm being gross monthly pay: nothing is withheld below CVE 36,607 (≈ $370) a month (CVE 439,284 (≈ $4,450) a year); 0.14 x Rm minus CVE 5,125 (≈ $52) up to CVE 80,000 (≈ $810); 0.21 x Rm minus CVE 10,725 (≈ $110) from CVE 80,000 (≈ $810) to CVE 150,000 (≈ $1,520); 0.25 x Rm minus CVE 16,725 (≈ $170) above CVE 150,000 (≈ $1,520) (Article 70(4) and (7) as worded by Law 20/IX/2017).
• Pensioners have their own monthly withholding formula: nothing is withheld on a gross monthly pension up to CVE 80,000 (≈ $810) (Article 70(5) as worded by Law 20/IX/2017). The higher bands of that formula are not given here because the printed constants do not fit together.
• Holiday pay, Christmas pay and productivity bonuses are withheld separately and are not added to the monthly pay; for married employees each spouse is calculated individually (Article 70).
• Annual regime if the employee opts for aggregation: the withheld amounts become payments on account; specific deductions for compulsory social-security contributions and union dues apply; rates are 16.5% up to CVE 960,000, (≈ $9,730) 23.1% from CVE 960,000 (≈ $9,730) to CVE 1,800,000 (≈ $18,200) and 27.5% above CVE 1,800,000, (≈ $18,200) with income up to CVE 220,000 (≈ $2,230) exempt (Articles 27, 44 and 45).
• Residents are taxed on worldwide income; income of residents arising outside Cabo Verde is aggregated in an annual return (Article 43(4)).
• A person is resident if present in Cabo Verde for more than 183 days, consecutive or not, in any twelve-month period of the tax year, or if they have a habitual residence there on 31 December.

Exclusions

• Non-residents are taxed only on income obtained in Cabo Verde, such as work done there or pensions paid by Cabo Verde entities.

Limits

• CVE 36,607 a month (≈ $370) · Gross monthly salary from which withholding at source starts (CVE 439,284 (≈ $4,450) a year)
• CVE 80,000 a month (≈ $810) · Upper limit of the first withholding band for employees
• CVE 150,000 a month (≈ $1,520) · Upper limit of the second withholding band for employees
• CVE 220,000 a year (≈ $2,230) · Exempt taxable income under the annual regime
• CVE 960,000 a year (≈ $9,730) · Upper limit of the 16.5% band under the annual regime
• CVE 1,800,000 a year (≈ $18,200) · Upper limit of the 23.1% band under the annual regime

Days in the country

• More than 183 days in any twelve-month period · A person present in Cabo Verde for more than 183 days, consecutive or interrupted, in any twelve-month period of the year is resident.

Tax residence

Tax residence follows presence of more than 183 days in a twelve-month period or habitual residence on 31 December, not the type of residence permit.

Visas

Immigration status does not decide tax residence.

Other taxes

Compulsory employee social-security contributions are deductible if the annual regime is chosen; VAT and property taxes are separate.

Checked against official sources on 12 Oct 2026Change log