Cape Verde, or officially Cabo Verde, has quietly become one of the Atlantic’s most promising investment destinations for expats seeking stability, growth, and lifestyle appeal.
With its steady euro-linked currency, business-friendly reforms, and open property laws for foreigners, the archipelago offers an unusually low-risk entry point into West Africa’s expanding economic corridor.
This guide explores expat investment advice in Cape Verde, what expat investors need to know about the country, including property ownership rules, residency options, tax obligations, and the country’s most attractive sectors.
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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
Why Invest in Cape Verde
Cape Verde’s investment landscape has matured rapidly over the past two decades. Political stability, strong ties to Europe, and a transparent regulatory environment have positioned the nation as one of Africa’s most reliable jurisdictions for foreign investors.
For expats, several structural advantages stand out:
- Economic and Currency Stability
The Cape Verdean escudo (CVE) is pegged to the euro at a fixed rate of 1 EUR = 110.265 CVE. This arrangement, maintained through the Bank of Cape Verde and backed by Portuguese financial support, virtually eliminates currency volatility for investors operating in euros. The peg has become a cornerstone of investor confidence, ensuring predictable returns and simplified financial planning. - Consistent Pro-Investment Policies
Successive governments have promoted an open economy and encouraged foreign capital through the Cabo Verde TradeInvest agency. Investors benefit from transparent incorporation processes, tax incentives in targeted sectors, and legally guaranteed repatriation of capital and profits. - A Safe, Democratic Environment
Cape Verde consistently ranks among Africa’s most democratic and corruption-free countries. The legal system, based on Portuguese civil law, provides clear property rights, straightforward contract enforcement, and strong protection for foreign ownership. - Growing Tourism and Real Estate Sectors
Tourism remains the primary driver of Cape Verde’s economy, accounting for over 25% of GDP. Development across the islands especially Sal, Boa Vista, São Vicente, and Santiago has generated opportunities in resort real estate, holiday rentals, and hospitality services. Many expat investors enter the market through the Green Card property program, which grants permanent residence for qualifying investments. - Strategic Position Between Continents
Located about 570 kilometers off the coast of Senegal, Cape Verde sits at the crossroads of Europe, Africa, and the Americas. Its deep-water ports, air connectivity, and free-trade agreements with ECOWAS and the European Union give it logistical advantages for trade and shipping ventures. - Expanding Sectors Beyond Tourism
The government’s diversification agenda centered on renewable energy, digital infrastructure, fisheries, and maritime logistics creates new investment fronts for expats seeking medium- to long-term growth. The Special Economic Zones in São Vicente (maritime industries) and Praia/Mindelo (technology) both offer reduced taxes and customs benefits for qualifying projects.
For expats, these conditions translate into a stable yet dynamic investment climate: a European-linked economy with African growth potential, protected property ownership, and straightforward mechanisms for residency and profit repatriation.
Does Cape Verde have a golden visa?
Yes. Cape Verde offers several pathways for foreigners who wish to live or invest in the islands.
Unlike many countries in the region, it maintains an open and investor-friendly migration framework that balances accessibility with due diligence requirements.
Cape Verde Green Card Program (Property-Based Residency)
Foreign investors who purchase qualifying real estate can apply for permanent residence through the Cape Verde Green Card program.
The minimum property value depends on the island: around €120,000 on Sal, Boa Vista, São Vicente, and Santiago, and €80,000 on other islands.
Once approved, the Green Card grants indefinite residency, renewable identity cards, and access to most local services. It does not automatically lead to citizenship but allows holders to live, work, and invest freely in Cape Verde.
Cape Verde Residence Permits
Foreign nationals can also apply for residence based on employment, entrepreneurship, family reunification, or long-term stay.
Applicants must show proof of accommodation, financial stability, a clean criminal record, and health insurance. Permits are usually granted for one or two years and can be renewed. After five years of continuous legal residence, holders may apply for permanent status.
Cape Verde Digital Nomad Visa
Cape Verde’s Digital Nomad Visa is one of the more forward-thinking schemes in the Atlantic region.
It allows remote workers from eligible countries, mainly the EU, North America, ECOWAS, and Portuguese-speaking nations, to reside in Cape Verde for up to six months, extendable to one year.
Applicants must demonstrate stable remote income, valid insurance, and prepaid accommodation. While it does not confer tax residency, it provides a simple option for location-independent professionals seeking temporary relocation in a warm, stable environment.
Cape Verde Short-Stay and Business Visas
Investors exploring opportunities can enter under short-stay or multiple-entry business visas. These are easy to obtain online through the government’s electronic pre-registration portal.
For initial scouting trips or short-term work, they offer flexible entry without long paperwork.
Can foreigners buy property in Cape Verde?
Yes. Cape Verde’s constitution explicitly protects the right of foreigners to own property on the same terms as citizens. This policy, which is rare in many developing island economies, has made real estate the most common entry point for expat investors.
Foreigners may own land and property outright, without the need for local partners or leasehold restrictions.
Transactions are registered through a notary and entered into the public land registry (Conservatória do Registo Predial). Before purchase, a cadastral verification is essential to confirm clean title and the absence of encumbrances.
The government’s land titling reforms, supported by international development agencies, have greatly improved transparency, particularly in tourist zones on Sal and Boa Vista.
Property transfers incur an IUP (Imposto Único sobre o Património) of around 1.5% of the assessed value, paid by the buyer.
An annual property tax of the same rate applies to ownership, while first-sale units from developers may also attract 15% VAT. Each municipality assesses property differently, so confirming the tax base before closing is critical.
Where To Buy Property in Cape Verde
- Sal and Boa Vista are the primary tourism hubs, hosting most resort and rental developments.
- São Vicente, home to the city of Mindelo, combines cultural appeal with growing maritime and tech industries.
- Santiago, the largest island and site of the capital Praia, is ideal for long-term residence and service-based ventures.
- Smaller islands like Maio and Santo Antão are attracting boutique eco-tourism and retirement investments.
Foreign investors should always hire a lawyer, notary, or a trusted expat financial advisor, verify that the seller holds full title, and ensure municipal and utility clearances are complete before payment.
Coastal plots may be subject to environmental restrictions, and some rural areas still lack finalized cadastral mapping. These are not dealbreakers but require careful documentation.
Most property transactions are conducted in euros due to the currency peg, minimizing exchange risk.
Condominium fees, maintenance costs, and utilities are generally modest, though water and electricity can be more expensive than in mainland markets.
Rental yields vary by island and season, with the best returns coming from managed holiday units near established tourist zones.
Taxation in Cape Verde
Cape Verde’s tax framework is relatively straightforward and designed to encourage foreign participation in the economy.
The system follows European models, with transparent rates and centralized administration under the Directorate-General of Contributions and Taxes (DGI).
- Corporate Income Tax (IRPC)
Companies operating in Cape Verde pay a standard 21% corporate income tax, with a small municipal surcharge in Praia and Mindelo that brings the effective rate slightly higher. The government plans a gradual reduction to 20% in 2026 and 15% by 2030 to enhance competitiveness. Registered companies can deduct operational expenses, depreciation, and certain investment-related costs. Businesses in Special Economic Zones (SEZs) may qualify for reduced or exempted rates depending on sector and capital invested.
- Personal Income Tax (IRPS)
Individuals are taxed progressively between 16.5% and 27.5% based on income bands. Non-residents are generally subject to withholding on Cape Verde–sourced income, including rent and dividends. Residents—defined as individuals spending 183 days or more in the country or maintaining a habitual home there—are taxed on global income. Double taxation is mitigated through limited treaties, mainly with Portugal, Guinea-Bissau, and Macau.
- Value-Added Tax (IVA)
Cape Verde applies a 15% VAT on goods and services, with a reduced 8% rate for essential utilities like water and electricity. Businesses exceeding certain turnover thresholds must register for VAT and file quarterly returns. For property investors, VAT applies to the first sale of new construction by developers, while resales are exempt and instead covered by the IUP transfer tax.
- Property and Capital Gains Taxes
Real estate transfers attract the IUP tax of about 1.5% of the property’s value, payable at the time of purchase. Owners also pay an annual IUP levy on the assessed value, typically recalculated by municipalities every few years. Capital gains from the sale of real estate or shares are subject to 20% tax for both residents and non-residents, though exemptions may apply for reinvestment or projects classified as Touristic Utility.
- Withholding and Repatriation Rules
Dividends, royalties, and interest payments to non-residents face withholding taxes ranging from 10% to 20%, depending on the income type and applicable treaties. The Investment Law guarantees the right to repatriate profits, dividends, and sale proceeds in freely convertible currency, provided the investment is duly registered with Cabo Verde TradeInvest or the central bank.
- Municipal Variations and Local Compliance
While the national framework is consistent, municipalities can impose small surcharges on property, tourism, or environmental services. Registration of leases and annual declarations are also handled locally. Engaging a local accountant or tax advisor is advisable for new investors, especially when operating across multiple islands.
What are Cape Verde Special Economic Zones?
To attract strategic sectors and foreign capital, Cape Verde has established a range of incentives under its Investment Code and through specialized zones offering fiscal and operational advantages.
The system is administered by Cabo Verde TradeInvest, which acts as the central investment promotion and facilitation agency.
All registered foreign investments enjoy guarantees of equal treatment with domestic investors, protection against expropriation, and free transfer of capital and profits abroad. Qualifying projects can access:
- Tax credits up to 50% of eligible investment expenditures.
- Customs exemptions on imported machinery, materials, and equipment.
- Accelerated depreciation on fixed assets used in priority sectors.
- Reduced corporate taxes for projects creating significant employment or exports.
Approval is typically granted within 30–60 days once documentation and feasibility details are submitted.
Cape Verde has introduced targeted SEZs to boost competitiveness in key industries:
- ZEEMSV (Special Maritime Economic Zone of São Vicente): Focused on maritime industries, logistics, ship repair, and fisheries processing. Companies based here benefit from customs-free import of equipment, lower corporate taxes, and simplified licensing under a dedicated maritime authority.
- ZEET (Special Economic Zone for Technologies): Anchored in Praia and Mindelo, ZEET supports digital services, business-process outsourcing, and IT infrastructure ventures. Participants receive tax incentives, streamlined work permits for foreign staff, and reduced social contributions for new hires.
These zones are designed to diversify the economy beyond tourism, creating entry points for expats in logistics, renewable energy, and tech entrepreneurship.
They also integrate with Cape Verde’s renewable and digital transformation goals, aligning private investment with national development strategies.
Investments in hotels, resorts, and tourism facilities can apply for “Touristic Utility” status, which provides partial tax holidays, customs relief, and expedited permits.
This status is especially relevant for developers in Sal, Boa Vista, and Maio, where infrastructure and environmental standards are strictly managed.
How do you apply for tax incentives in Cape Verde?
To access these incentives, investors must submit project details to Cabo Verde TradeInvest, which evaluates the proposal’s economic impact, sustainability, and compliance with national plans.
Once approved, the project is registered and monitored to ensure it meets employment and performance targets. Maintaining transparency with both TradeInvest and municipal authorities ensures continued access to benefits.
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