Incentives to Investing in Cape Verde

In addition to offering excellent financial returns, Cape Verde offers extremely attractive fiscal incentives to overseas investors. The incentive package focuses on external investment, free-zone enterprises, exports and activities of targeted sectors, in particular tourism. Verde Invest represents its clients in applying for and securing foreign investor status and all requisite incentives.

The benefits available include:

Fiscal  Incentives

* Entitlement to a full exemption from taxes applicable to all dividends and profits generated during the first five years of operation on condition that foreign capital is invested ;

* 10% Personal Income (IUR) after the sixth year of activity.

* Provision of tax-exemptions on amortizations and interests 

Guarantees

* Legal protection of private property rights regarding foreign investment;

* Unconditional transferability in convertible currency of net profits and dividends;

* Privately managed foreign currency accounts;

* Freedom to hire foreign workers up to 10% of the permanent labor force.

 Tourism Development – Specific Incentives

* Exemption from general customs duties over imports of materials used for exclusive construction or installation of  tourism facilities;

* Exemption from real estate transfer and property taxes;

* 100% fiscal exemption for the first five-year period;

* For the ten years following the first five, the tax rate shall be half the normal rate (30%)

* Tax deduction on profits reinvested in similar activities ;

* Tax deduction  for expenses incurred in training the local taskforce;