Cape Verde 2026: no wealth tax and a currency pegged to the euro, in the Atlantic sun

Capital gains on the sale of foreign shares and ETFs fall under IRPS category E and, for a resident selling through a foreign broker, are automatically aggregated under the progressive scale: 16.5% up to CVE 960,000, 23.1% up to CVE 1,800,000, and 27.5% above (about €8,700 and €16,300). Where a typical Western investor would face 25% to 35% on the same gains, Cape Verde charges up to 27.5%. The 1% final charge, levied on the sale price, applies only to Cape Verdean-source gains; and since the code provides no deduction for the purchase price, the tax base of a foreign gain should be secured through an advance ruling. Non-habitual resident status does not exempt these gains. Source: Código do IRPS (arts. 44, 46, and 51) and PwC Worldwide Tax Summaries Cabo Verde 2025-2026.

Foreign-source dividends fall under IRPS category D and, when received through a foreign broker, are automatically aggregated under the progressive scale (16.5%, 23.1%, then 27.5% above about €16,300); the 10% final rate applies only to dividends paid in Cape Verde. A foreign tax credit is granted, equal to the lower of the withholding levied abroad and the IRPS due: with no treaty, a US share suffers the 30% withholding, which absorbs the IRPS due with no refund of the excess, while an Irish UCITS ETF, which in principle suffers no withholding, bears the full IRPS. Non-habitual resident status does, however, exempt these dividends for 7 years for anyone who has not been resident in the previous 5 years. This is a point to model according to the exact structure of your portfolio. Source: Código do IRPS (arts. 22, 44, 46, and 57) and PwC 2026.

Yes, and this is a decisive argument. The Cape Verdean escudo is pegged to the euro at a fixed parity (110.265 CVE per euro) under the monetary cooperation agreement with Portugal. Volatility against the euro is nil: for a retiree or investor whose income and capital are in euros, exchange-rate risk disappears, unlike a freely floating currency. Local inflation reached 2.3% in 2025. Source: Banco de Cabo Verde and the Portugal-Cape Verde monetary cooperation agreement.

Barely. This is the main limitation of the setup: Cape Verde has signed only about ten double-taxation treaties, seven of them in force (Portugal, Spain, Angola, Mauritius, Guinea-Bissau, Macao, Senegal). There is no treaty with the United States and no Irish UCITS treaty. The absence of a treaty can complicate the treatment of certain withholding taxes and the resolution of double taxation. A review with an adviser familiar with both systems is essential. Source: Cape Verde treaty network, 2026.

No for the wealth tax: Cape Verde levies none. For inheritance, transmission in the direct line is exempt (0%), a clear advantage over the progressive inheritance taxes found in many Western countries, where the rate can reach 30% to 45% on large estates. This combination strengthens the estate-planning appeal of the archipelago for anyone preparing a transmission. Source: KPMG Inheritance Guide and PwC 2026.

The cost of living is low, with an index around 46. A three-bedroom flat in the city center rents for about €600 a month, a restaurant meal for two costs close to €27, and a pint is around €2.1. In Praia, real estate runs at about €1,100 per square meter in the center and €800 on the outskirts. A couple can therefore live comfortably on a budget well below that of a major European city, allowing for the premium on imported goods on an archipelago.

Praia, the capital on the island of Santiago, concentrates administration, services, and urban life. Mindelo, on Sao Vicente, is known for its cultural scene. The islands of Sal and Boa Vista, more touristic and beach-oriented, offer a hot, dry climate much sought after by lovers of beaches and wind. The choice depends on the trade-off between urban services, in Praia, and a beach lifestyle, in Sal or Boa Vista. Source: local data, 2026.

Cape Verde has a reputation as a peaceful and politically stable archipelago, regarded as one of the most solid democracies in West Africa. The 2025 Global Peace Index lists the country but does not publish a numerical score, which is why we remain cautious and qualitative. The concrete risk for an expatriate is ordinary crime (theft, robberies, burglaries), increasingly frequent and often committed under threat of a weapon, particularly in Praia. Source: Institute for Economics and Peace, Global Peace Index 2025, and France Diplomatie, 2026.

Healthcare is mid-level and concentrated in Praia and Mindelo, where decent private clinics handle routine medicine. But the archipelago is isolated and the technical capacity remains limited for serious cases, which are often referred to Portugal. International health insurance including medical evacuation is therefore strongly recommended, even more than in a mainland destination. Source: international insurers, 2026.

There is no dedicated retirement visa as in Portugal. The route best suited to a person of independent means is the Green Card: a renewable permanent residence granted to foreigners who buy a home worth at least €80,000 (€120,000 in municipalities whose GDP per capita reaches the national average), paid with funds transferred from abroad. Otherwise, residence is obtained through investment, an employment contract, or family reunification. The exact framework and financial thresholds should be confirmed with the Direcao de Estrangeiros e Fronteiras, as they can change. In practice, a visitor enters without a visa for a short stay, then files a residence application on the spot with proof of resources and housing. Source: Cape Verdean authorities, to be confirmed, 2026.

The corporate income tax rate has been 20% since January 1, 2026 (21% in 2025), with a 2% municipal surcharge in Praia and Mindelo, bringing the effective rate to about 20.4% in those cities. This mainly concerns profiles considering housing a business or a holding company there, and far less the individual investor living off capital gains, taxed under the IRPS scale. Source: PwC Worldwide Tax Summaries 2026.

This is the main point of caution. Capital gains on sale are taxed under the IRPS scale (up to 27.5%), with a tax base to be secured through an advance ruling. On distributed dividends, an Irish UCITS ETF suffers no withholding at source, so the Cape Verdean tax credit is nil and IRPS category D remains fully due under the scale, up to 27.5%. For a portfolio heavily tilted toward dividends through UCITS ETFs, this charge, or the 7-year exemption under non-habitual resident status, must therefore be modeled before drawing conclusions. Source: PwC 2026 and UCITS ETF structure.