Introduction
Cabo Verde — the Cape Verde Islands — is an Atlantic archipelago of ten volcanic islands situated approximately 570 kilometres off the west coast of Africa. Once a Portuguese colony, independent since 1975, it has evolved into one of sub-Saharan Africa's most stable democracies: ranked among the continent's top performers on rule of law, press freedom, and governance indicators for over a decade.
For international financial planning purposes, Cabo Verde has quietly developed a framework designed to attract foreign investors and non-habitual residents, drawing on lessons from Portugal's now-curtailed NHR regime. The country's currency is pegged to the euro, its legal system is based on Portuguese civil law, and its government has been actively courting foreign investment in tourism, renewable energy, and financial services. English, Portuguese, and Creole are all used in business contexts.
Cabo Verde is small — approximately 550,000 people — but it punches above its weight in terms of institutional quality relative to regional peers, and its location mid-Atlantic between Europe, Africa, and the Americas gives it genuine strategic relevance for certain business models.
The IMIR Regime: Non-Habitual Residents
Cabo Verde introduced its Investment, Migration, and International Residence (IMIR) framework to attract internationally mobile HNW individuals and retirees. The regime is designed to provide a period of preferential tax treatment for qualifying new residents — conceptually similar to Portugal's former NHR regime, though with its own specific rules.
Under the IMIR framework, qualifying non-habitual residents may benefit from reduced or flat rates of income tax on foreign-source income for a period following registration. The specific terms — including the qualifying period, applicable rate, and covered income categories — should be verified with a qualified Cabo Verde tax adviser, as the regime has been subject to refinement and the detailed rules vary depending on income type.
For those considering a Portuguese-speaking, Atlantic-timezone base after Portugal's NHR reform (Portugal phased out the original NHR for new applicants from 2024, replacing it with the IFICI/Tax Incentive for Scientific Research and Innovation regime), Cabo Verde is an increasingly discussed alternative.
Standard Income Tax
The standard personal income tax (IUR — Imposto Único sobre o Rendimento) in Cabo Verde applies progressively, with rates that have historically ranged from approximately 16.5% to 27.5% at the top bracket (verify current rates with a local adviser). The regime is based on worldwide income for residents.
Cabo Verde employs a schedular approach to some income categories, meaning different types of income (employment, business, capital) may face different rates and rules. Employment income faces the progressive schedule; capital income (dividends, interest) may face different withholding rates.
Capital Gains
Capital gains on the disposal of securities and other investment assets are taxed in Cabo Verde as part of the income tax framework. Gains on shares may be exempt or taxed at reduced rates in certain circumstances. Real property gains are taxable, with the rate and calculation methodology depending on the nature of the asset and the holding period.
The details of CGT treatment — including any exemptions for long-term holdings or specific asset classes — should be verified with a current-law source, as Cabo Verde's tax code has been updated in recent years.
The Escudo and Currency Stability
Cabo Verde uses the Cape Verdean escudo (CVE), which has been pegged to the euro (previously to the Portuguese escudo) through a currency board arrangement with Portugal's Banco de Portugal since 1998. The peg is maintained at 110.265 CVE per EUR.
This peg has been maintained without devaluation and provides the same exchange rate certainty as other euro-pegged currencies. For euro-based investors, there is no currency risk on CVE-denominated investments. For USD-based investors, only the EUR/USD rate applies. This is a significant advantage over most African jurisdictions, where currency volatility is a major investment risk.
Real Estate and Tourism Investment
Cabo Verde's real estate market has attracted substantial foreign investment, particularly on the islands of Sal, Santiago, Boa Vista, and São Vicente. Tourism is the dominant sector of the economy, and resort and residential property in prime locations has seen strong appreciation driven by European demand — particularly from UK, Portuguese, German, and Dutch buyers.
Foreign nationals may purchase real estate in Cabo Verde without restriction. Transfer taxes (imposto de sisa and stamp duty) apply on acquisition, at rates that vary by property value and location. Capital gains tax applies on disposal, as noted above.
The rental market in tourist areas has benefited from Cabo Verde's growing popularity as a tourism destination — particularly in the luxury and eco-tourism segments. Cabo Verde's year-round warm climate (it sits in the trade wind zone, avoiding the humidity of equatorial Africa), relative proximity to Europe (4 hours from London), and political stability make it attractive to both holidaymakers and longer-term residents.
Residency Programmes
Cabo Verde offers a residency-by-investment pathway for foreign investors who make qualifying investments in the country. Investment thresholds and qualifying categories are defined by the government's investment promotion agency (Agência para o Investimento e Comércio Externo de Cabo Verde, AICEP Cabo Verde).
A standard long-stay visa and subsequent residence permit are available for those who do not qualify for the investment pathway but can demonstrate financial self-sufficiency. The process is managed through Cabo Verde's consular network and, for those already in the islands, through DGMCI (Direcção-Geral de Migração e Cidadania).
Political Stability and Governance
Cabo Verde has been a multi-party democracy since 1991 and has achieved peaceful transfers of power between the two main parties (MpD and PAICV) multiple times. Transparency International consistently ranks it as one of the least corrupt countries in Africa. The judiciary is independent, and property rights are generally respected.
The country is a member of the Economic Community of West African States (ECOWAS) and has Special Partnership status with the EU — a formal diplomatic relationship that provides additional regulatory alignment with European standards.
Practical Considerations: Infrastructure and Services
Cabo Verde's infrastructure is adequate for a small island nation but has limitations. Healthcare is basic by European standards, and serious medical cases are often evacuated to Portugal or the Canary Islands. Broadband connectivity has improved significantly in recent years, and mobile internet coverage on the main islands is now reliable.
Direct flights to Sal and Santiago operate from London Gatwick, Manchester, Lisbon, Amsterdam, and other European cities, making connectivity to Europe practical. Flying time from the UK is approximately 5.5 to 6 hours.
Portuguese is the official language; Cabo Verdean Creole (Kriolu) is widely spoken in everyday life. English is increasingly used in business and tourism contexts, particularly on Sal and Boa Vista.
Compliance and Reporting
Cabo Verde participates in international tax information exchange and is a signatory to CRS. Financial account information held in Cabo Verde is exchanged with participating jurisdictions, including the UK. FATCA applies for US persons with Cabo Verde accounts.
Compliance Caveats
Cabo Verde's tax legislation is subject to change, and the IMIR and standard tax rules should be verified with a qualified local adviser before any decisions are made. Nothing in this guide constitutes tax or legal advice. Investments can fall as well as rise in value; tourism market conditions and property values can fluctuate; and residency and investment regulations are subject to revision by the government. Independent professional advice from a qualified Cabo Verde adviser and, where relevant, your UK or prior-jurisdiction adviser is essential.
How Global Investments Can Help
Global Investments has over 32 years of experience advising internationally mobile HNW individuals on Atlantic-facing planning jurisdictions, including the Lusophone world. We can assess whether Cabo Verde's IMIR regime or standard residency creates a genuine planning advantage for you relative to your current position, help you structure any property or business investment, and ensure that your prior-jurisdiction exit — including UK non-residence planning — is correctly executed. Our advice is independent and fee-based. Contact our international planning team to explore whether Cabo Verde belongs in your broader strategy.
This guide is for general information only and does not constitute financial advice or a personal recommendation. The value of investments can fall as well as rise and you may get back less than you invest. Tax rules, pension legislation, and investment regulations change — always verify current rules and seek advice from a qualified independent financial adviser before making any financial decisions.