INDIVIDUAL TAXATION

Non-resident individuals are liable to pay tax on income from sources in Cape Verde. Although the tax law is uncertain as to whether worldwide or territorial principle applies in the islands, the tax authorities state that Cape Verde follows the territoriality principle.

Currently, there is a single income tax levied at state level. A reform is scheduled for 2009 splitting this single income tax into two separate income taxes (one for companies and another for individuals).

INCOME TAX (imposto único sobre os rendimentos)

Non-residents are generally taxed at a flat rate of 20%.

RENTAL INCOME
Rental income earned by non-residents is subject to 20% final withholding tax.

CAPITAL GAINS
Capital gains derived from selling property connected with a business are subject to capital gains tax. In calculating the taxable capital gains, acquisition costs and incidental costs as well as improvement costs are deductible. Only 50% of the resulting capital gains are subject to tax, levied at 20% for non-residents.

PROPERTY TAX

Property Tax (imposto único sobre o património)

This tax is levied on the property value at a flat rate of 3%.