Cape Verde
Data updated Aug 29, 2026
Overall Score
53.5
Good
Avg. Rent (1BR)
$470
-72% vs US Avg
Safety Index
66.4
COL Index
38
Cape Verde works for a specific type of expat: someone who wants an Atlantic island base with low crime, does not need big-city infrastructure, and can live on a modest budget without feeling deprived. The State Department Level 1 advisory puts it on par with much of Western Europe for safety, and the safety index of 66.4 supports that. English gets you by in the tourist islands like Sal and Santiago, though Portuguese and Cape Verdean Creole dominate everywhere else. This is not a digital nomad hub with co-working spaces and fast fiber. It suits the retiree or semi-retired person who wants slow pace, ocean access, and a genuinely low cost of living without the bureaucratic weight of Southeast Asia or Latin America.
A realistic monthly budget for a single person runs around $1,260 all-in, combining the $789 living costs with roughly $470 for a one-bedroom in a city center. That is competitive but not dramatically cheap. For context, the same dollar in Lisbon would get you roughly similar costs with far superior infrastructure. The marketing pitch around Cape Verde tends to emphasize the euro-pegged escudo as monetary stability, which is true but also means you lose the currency arbitrage advantage you get in places like Colombia or Thailand. Groceries lean on imports for anything beyond local fish and produce, which pushes food costs higher than the headline numbers suggest. A beer at a local bar runs about $1.50, but a bottle of imported wine can easily hit $15.
The friction points are real. Healthcare scoring a 41.2 means you treat the local system as emergency-only and pay out of pocket for anything serious, flying to Lisbon or Las Palmas in the Canaries for anything beyond basic care. Internet quality varies island to island, and while Sal and Santiago have usable connectivity, power outages are not rare. Banking is a genuine headache for foreign residents. Opening a local account requires significant paperwork, and getting money in and out reliably takes more effort than almost anywhere in Latin America. The rental market for longer-term stays outside the tourist zones is thin, so finding a decent place not priced for European package tourists takes legwork. Property purchases are possible for foreigners but the legal due diligence process is slow and requires a local lawyer you have actually vetted.
US citizens living in Cape Verde file the same way they do everywhere else: the IRS taxes on worldwide income regardless of residency. The Foreign Earned Income Exclusion applies if you meet the bona fide residence or physical presence test, sheltering up to roughly $126,500 of earned income for 2024. Cape Verde has no tax treaty with the United States, so there is no formal mechanism to avoid double taxation beyond the Foreign Tax Credit on taxes paid to the Cape Verdean government. Cape Verde imposes income tax on residents at rates up to 27.5 percent, so the credit matters if you have significant local income. Social Security and FBAR obligations apply as normal. The absence of a totalization agreement means self-employed Americans still owe self-employment tax to the IRS on top of any local contributions.
Recommended Destinations in Cape Verde
Best for Retirees
Best for Geoarbitrage
Best for Remote Workers
- Capital
- Praia
- Official Language
- Portuguese
- Time Zone
- UTC-01:00
- Region
- Africa
- Population
- 555,988
- Healthcare Index
- 41.2
- Internet Speed
- 20 Mbps
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Explore data visually
🏙️ Top Cities in Cape Verde
Explore cost of living, walkability scores, and expat ratings for individual cities in Cape Verde.
CoL Index: 45
Est. Total: ~$1,150/mo
CoL Index: 43
Est. Total: ~$1,145/mo
CoL Index: 38
Est. Total: ~$623/mo
CoL Index: 38
Est. Total: ~$1,261/mo
How far does $1,500 go in Cape Verde?
With a monthly budget of $1,500, you can live comfortably in Cape Verde. After accounting for an average rent of $$470, you have approximately $1,030remaining for daily expenses.
Calculate your FIRE timeline with these costs →💰 Cost of Living in Cape Verde
Relative to New York City (NYC = 100). A lower number means it's cheaper.
Cost Comparison Notes:
Summary of cost of living in Cape Verde: The estimated monthly costs for a family of four are $2,853.9 (273,483.6Esc), excluding rent. The estimated monthly costs for a single person are $788.9 (75,598.7Esc), excluding rent.
🛒 Grocery & Family Costs
Family Costs
Can I afford to live in Cape Verde?
Comfortable (1.0×): balanced baseline lifestyle. Adjusts day-to-day costs only — rent is unaffected.
Cape Verde
You could save
1,742/mo
Monthly Costs
Attractiveness Scores
Based on national averages. City-level costs may vary. Browse cities in Cape Verde →
⚕️ Healthcare System
Our Top Pick for Nomads: SafetyWing
Flexible, subscription-based health cover for remote workers in Cape Verde.
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An estimation of the overall quality of the health care system. Higher is better.
Quality & Affordability:
Cape Verde has been investing in improving its healthcare infrastructure, focusing on enhancing access and quality of primary healthcare services in various municipalities. However, challenges remain in ensuring comprehensive coverage across all islands.
Insurance Insights:
The government is working towards better healthcare financing, but many individuals still incur out-of-pocket expenses.
🛂 Visa & Residency Pathways
🛂 Visa Services
Ready to apply for a Cape Verde visa?
Get help with your application — tourist, long-stay, and residency visas processed online.
General Overview
Available Visa Types:
Process & Requirements:
Cape Verde has established a 'clear' residency framework aimed at attracting foreign investment and remote workers. The primary routes are through real estate investment or by demonstrating a stable passive income. A residence permit can be obtained by purchasing property, with the value requirements being reasonable compared to many European destinations. For those with passive income (retirees or remote workers), demonstrating a monthly income of at least €1,500 can qualify them for a long-stay visa and subsequent residence permit. This is often referred to as a 'D7-style' visa, similar to Portugal's.
The process involves first obtaining a long-stay visa from a Cape Verdean embassy and then applying for the residence permit within the country. While the system can be bureaucratic, the legal requirements are straightforward and financially accessible for many, making it an attractive option.
Residency & Citizenship Notes:
The pathway to permanent residency is 'clear' after five years. The pathway to citizenship is also 'clear' and relatively fast. A person can apply for naturalization after just five years of legal and continuous residence. The applicant must demonstrate a sufficient connection to the country and have a basic knowledge of the Portuguese language. Cape Verde allows for dual citizenship, so you are not required to renounce your previous nationality. The short five-year timeline and acceptance of dual citizenship make it a very appealing path for long-term residents.
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Detailed Visa Options
🧳 Tourist & Short-Stay Information
Extension Notes
An extension of stay can be requested from the National Police (Direcção de Emigração e Fronteiras) before the initial period expires. Source: Government of Cabo Verde.
General Visa Notes
US citizens can enter Cabo Verde visa-free for up to 30 days. However, it is mandatory to complete an online pre-registration form (EASE) and pay an airport security fee (TSA) at least five days before arrival.
Official Source: View Source
🌴 Retirement / Passive Income Visa
This country does not have a dedicated retirement visa, but the following notes provide guidance on pathways for retirees.
Income Notes
Cabo Verde does not have a dedicated retirement visa, but a temporary stay visa can be granted to those with 'their own proven income'. No specific amount is listed by law and it is subject to consular approval. A residence permit can also be obtained via real estate investment.
Official Source: https://www.governo.cv/category/vistos/
Health Insurance Notes
For a temporary stay visa based on 'own proven income', applicants must have a health insurance policy that covers medical expenses and repatriation for the duration of their stay.
Official Source: https://www.governo.cv/category/vistos/
💻 Digital Nomad Visa
Income Notes
The Cabo Verde Remote Working Program requires a minimum monthly income of €1,500 for an individual. The visa is granted for six months and can be renewed for another six. The application process is done online.
Official Source: View Source
Tax Notes
Holders of this visa are exempt from paying local income tax in Cabo Verde. The program is designed to allow nomads to live in the country without becoming part of its domestic tax system. Source: Government of Cabo Verde.
📈 Investor Visa
Investment Details
Investment Options & Notes
Cape Verde does not have a direct 'Golden Visa', but foreigners can obtain residency by investing in the country. While there's no official minimum in law, an investment of at least €80,000 in real estate is a widely used benchmark for a successful application. Source: Law No. 80/VIII/2014 on Foreigners.
Path to Citizenship
Citizenship Notes
After 5 years of continuous legal residence, an investor can apply for citizenship. The applicant must have a basic knowledge of Portuguese. Dual citizenship is permitted. Source: Law on Nationality of Cape Verde.
🛡️ Safety & Stability
An estimation of overall safety level. Higher is better.
An estimation of the overall level of crime. Lower is better.
World Bank political stability estimate, rescaled to 0-100. Higher is better.
Safety Notes:
Crime Rate: Low. Cape Verde is generally safe, with occasional petty crimes.
Types of Crime: Pickpocketing and theft, particularly in tourist areas.
Kidnapping Risk: Very low; no significant threat reported.
🏦 Taxation & Finance
🏦 Tax Snapshot
FEIE Interaction
FTC Utility: medium
Cape Verde's top marginal IUR rate is 23.5%, below the top US federal rate of 37%. The Foreign Tax Credit can offset some US tax liability on income taxed in Cape Verde, but the lower local rate means the FTC will not fully shelter US tax on higher-income earners. For lower earners, the FEIE may be more advantageous than the FTC.
Presence Day Count Notes
Standard 330-day physical presence test applies. Cape Verde has no US tax treaty that modifies FEIE qualification rules. Days spent on any of the ten islands count equally. Travel between islands does not interrupt the count.
FBAR Trigger Notes
FBAR filing required if aggregate value of foreign financial accounts exceeds $10,000 at any point during the calendar year. Cape Verde escudos (CVE) held in Cape Verde bank accounts count toward the threshold. FATCA reporting may also apply for accounts over $200,000 held abroad.
401k/IRA Treatment
Pension Income
Foreign pension income received by Cape Verde tax residents is taxable under IUR at progressive rates up to 23.5%. Cape Verde has a small number of double tax agreements with Portugal and a few other countries, but none with the US.
Locally TaxedSocial Security
No US-Cape Verde totalization or income tax treaty. US Social Security benefits received by a Cape Verde resident are potentially subject to IUR as foreign pension income. No domestic exemption for foreign government pension schemes is confirmed.
Locally TaxedRoth Distributions
No treaty exists to clarify treatment of Roth distributions. Cape Verde tax authorities may treat these as foreign income receipts subject to IUR. The tax-exempt character of Roth distributions under US law is not recognized in Cape Verde absent a treaty.
Locally TaxedUS 401k/IRA Distributions
The United States and Cape Verde do not have a bilateral income tax treaty. US 401k and IRA distributions received by a Cape Verde tax resident would generally be treated as foreign-source pension or employment income and subject to IUR at progressive rates up to 23.5%. No treaty provisions exist to limit Cape Verde's taxing rights.
Locally TaxedCapital Gains Tax
Cape Verde does not have a standalone capital gains tax. Capital gains earned by individual taxpayers are subject to a flat 1% rate on the disposal of immovable property, intellectual property, or shareholdings. Corporate gains are included in taxable profit subject to the standard CIT (IRC) rate.
Individual capital gains in Cabo Verde are taxed at a flat 1% rate on disposal of immovable property, intellectual property, or shareholdings, rather than at progressive IUR rates. Corporate gains are folded into ordinary taxable income under the IRC.
Dividend Tax Rate
Dividends are subject to a flat 10% rate for both resident and non-resident individuals. A special regime exempts interest on term deposits received by Cape Verdean emigrants, and dividends from shares listed on the stock exchange placed at holders' disposal until 31 December 2017 are exempt from PIT.
flat
Rate: 10.0%
Standard flat rate applying to dividends for both resident and non-resident individuals.
Tax Treaties Notes:
No US-Cape Verde tax treaty. Territorial taxation (foreign income not taxed).
Retiree Tax Benefits:
Retiree visa available with income proof. No taxes on foreign pensions.
Cost Savings vs. U.S.:
Moderate costs (e.g., $1,200/month on islands like Sal). Tourism-driven economy.
Recommended services for Cape Verde
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My Expat Taxes →☀️ Climate & Environment
Our proprietary index for drinking water quality and sanitation. Higher is better.
Seasonal Variations:
Cape Verde experiences a semi-arid climate with a short rainy season from August to October and a longer dry season for the remainder of the year. Average annual temperatures range between 24°C and 30°C, with low humidity and consistent trade winds. ([capeverde.co.uk](https://www.capeverde.co.uk/guide/weather))
😊 Quality of Life
Cultural Amenities:
Museums & Cultural Institutions
Museu Etnográfico da Praia showcases Cape Verdean history and culture.
Cidade Velha, a UNESCO World Heritage site, reflects the islands' colonial past.
Performing Arts
Morna, a melancholic music genre, is emblematic of Cape Verdean identity.
Funaná and Batuque are lively traditional music and dance forms.
Cultural Festivals
Gamboa Festival in Praia features local and international music acts.
Baía das Gatas Music Festival on São Vicente Island is a major cultural event.
Culinary Culture
Cachupa, a slow-cooked stew of corn, beans, and meat or fish, is the national dish.
Seafood is abundant, with dishes often seasoned with local herbs and spices.
🌐 Infrastructure & Connectivity
Our proprietary ranking of public transit accessibility and reliability.
Internet Reliability:
Cape Verde has moderate internet infrastructure with ongoing improvements across the islands.
Speed & Quality: Fixed broadband averages around 45 Mbps with fiber networks expanding in main cities.
Availability: Good coverage on main islands, more limited on remote islands.
Cost: Moderate pricing, typically $30-50/month.
Reliability for Remote Work: Generally adequate for remote work on main islands, though some remote locations may face connectivity challenges.
Transportation Network:
Cape Verde has basic transportation infrastructure serving its scattered island geography with inter-island connectivity focus.
Roads: Limited road networks on individual islands, mostly paved on main islands.
Rail: No railway system due to island geography.
Domestic Travel: Regular flights and ferry services connect the islands; Praia and Mindelo serve as main hubs.
Recommended services for Cape Verde
Recommended Partner
Traveling Mailbox →Recommended Partner
US Global Mail →Recommended Partner
HideMy.Name →Recommended Partner
Veepn →Frequently Asked Questions about Cape Verde
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