Cape Verde

{"ftc_utility":"medium","fbar_trigger_notes":"US expats residing in Cape Verde are required to maintain local bank accounts (escudos, CVE) for payroll and daily transactions. Any account exceeding $10,000 in aggregate at any point during the year triggers FBAR (FinCEN 114) filing. FATCA Form 8938 thresholds also apply. Cape Verde banks are not yet fully FATCA-compliant but the government has taken steps toward information exchange.","ftc_utility_reason":"Cape Verde levies personal income tax at rates up to 27.88% on residents, which is below the top US federal rate. FTC can offset US tax on Cape Verde-sourced income but may not fully shelter all US tax liability depending on income composition. For high earners, the FTC is more useful than FEIE alone due to Cape Verde's moderate-rate progressive system.","presence_day_count_notes":"Cape Verde does not impose formal visa day-count caps for most Western nationals for short stays, but longer residence requires a residency permit. The 330-day physical presence test is achievable. Days spent in Cape Verde count toward the 330-day rule. Entry and exit days do not count as full qualifying days.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":8400,"local_tax_rate_on_earned_income":0.2788,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by a Cape Verde resident is included in taxable income under IRPS and taxed at progressive rates up to 27.88%. Local Cape Verde pensions are also taxable under IRPS with limited deductions available for older pensioners.","tax_rate":0.2788,"locally_taxed":true},"social_security":{"notes":"No bilateral social security totalization agreement exists between the US and Cape Verde. US Social Security benefits received by a Cape Verde tax resident are foreign-source income and would be subject to IRPS. No treaty protection is available.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"Roth distributions that are genuinely tax-free in the US may still be viewed as foreign income by Cape Verde tax authorities in the absence of a treaty. In practice, enforcement is limited, but there is no statutory exemption. Conservative planning should assume potential local tax exposure.","locally_taxed":false},"us_401k_ira_distributions":{"notes":"No US-Cape Verde income tax treaty exists. Distributions from US 401(k) or IRA accounts received by a Cape Verde tax resident would be treated as foreign pension or income and taxed under IRPS at progressive rates up to 27.88%. US residents filing under FEIE or FTC rules must account for this separately.","tax_rate":0.2788,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.2788,"notes":"Cape Verde does not have a separate capital gains tax. Gains are generally included in taxable income and subject to the progressive personal income tax (IRPS), with a top rate of 27.88%. Certain asset disposals may be subject to withholding at 20%.","details":{"tax_type":"Capital Gains Tax","country_name":"Cape Verde","country_iso_code":"CPV","source_references":["Cape Verde IRPS Code","PwC Cabo Verde country listing","KPMG Africa tax guides"],"last_verified_date":"2026-06-03","general_description":"Cape Verde taxes capital gains under the personal income tax (IRPS) framework. There is no standalone capital gains tax regime. Gains on sale of real property and securities are included in gross income and taxed at progressive rates. A 20% withholding rate may apply at source on certain investment income disposals.","corporate_capital_gains":{"rate":0.25,"tax_treatment":"Included in corporate taxable income under the corporate income tax (IRC) at the standard rate of 25%."},"individual_capital_gains":{"rate":0.2788,"tax_treatment":"Gains included in personal income and taxed at progressive IRPS rates up to 27.88%. Real property gains may benefit from partial exclusion depending on holding period."}}}

{"notes":"Dividends paid to individuals resident in Cape Verde are subject to withholding tax at 20% as a final tax. Dividends paid to non-residents are also subject to 20% withholding. There is no additional personal income tax layer on dividends once the withholding is applied.","rates":[{"rate":0.2,"type":"withholding","notes":"Final withholding tax of 20% applies to dividends paid to both resident and non-resident individuals. No further IRPS liability arises on dividend income subject to this withholding."}]}