Detailed comparison
| Side-by-side comparison of taxation, cost of living and scores between the two countries. |  France | |
|---|---|---|
| Taxation | ||
| Dividend tax | 27.5%, Edge to this country | 31.4% |
| Capital gains tax | 27.5%, Edge to this country | 31.4% |
| Corporate tax | 20%, Edge to this country | 25%Scale15-25% |
| Wealth tax | None | Yes, IFI (real estate only): net taxable real estate assets > €1.3M on 1 January, rates 0.5% to 1.5% (from €800,000); ETFs, shares and bonds excluded |
| Direct inheritance | 0%, Edge to this country | 45%Scale5-45% |
| Cost and real estate | ||
| Monthly FIRE budget | €1,800, Edge to this country | €2,700 |
| Cost-of-living score | 72.6, Edge to this country | 37.5 |
| Reference city | Praia | Paris |
| City-center 2-bed rent | €600, Edge to this country | €2,950 |
| Safety and FIRE score | ||
| Insecurity | 0.0, Edge to this country | 2.1 |
| FIRE Ultimate V3 score | 71.5, Edge to this country | 62.2 |
Verdict
- Cape Verde keeps an edge on capital taxation: foreign gains and dividends on the IRPS scale from 16.5% to 27.5% against 31.4%, with dividends exempt for 7 years under non-habitual resident status, no wealth tax, and inheritance in the direct line at 0%, all in a currency pegged to the euro with no exchange-rate risk.
- France keeps a very broad network of tax treaties, access to Irish UCITS ETFs, a top-tier health system and infrastructure, and the legal security of a large country, where Cape Verde is an isolated archipelago with mid-level services and a treaty network limited to seven treaties in force, none with France.
- Verdict: for an investor living off capital gains on shares and comfortable with Lusophone culture, Cape Verde offers a real but modest tax saving (27.5% at most against 31.4%) with no exchange-rate risk. For a profile dependent on dividends through UCITS ETFs, requiring a top-tier medical setup, or needing a treaty with France, the gap narrows sharply.
Frequently asked questions about this duel
Are capital gains really taxed at 1% in Cape Verde against 31.4% in France?
No. Cape Verde's 1% final charge (IRPS category E), levied on the sale value, covers only Cape Verdean source gains: gains on foreign shares and ETFs are automatically added to the progressive IRPS scale (16.5%, 23.1%, then 27.5% above CVE 1.8 million, about €16,300), with no exemption under non-habitual resident status, while France taxes the same gains at the PFU of 31.4% (12.8% income tax and 18.6% social levies). The advantage assumes a tax residency genuinely established in Cape Verde. Source: PwC 2026.
Does Cape Verde have a tax treaty with France?
No. Cape Verde has double-taxation treaties in force only with seven countries (Portugal, Spain, Angola, Mauritius, Senegal, Guinea-Bissau, and Macao), none with France. The absence of a treaty with France can complicate the treatment of certain withholding taxes and the resolution of double taxation, and calls for careful review with an adviser before any change of residence. Source: Cape Verde treaty network, 2026.
Is there exchange-rate risk between the escudo and the euro?
No. The Cape Verdean escudo is pegged to the euro at a fixed parity (110.265 CVE per euro) through the monetary cooperation agreement with Portugal, meaning zero volatility. For a French investor whose capital and income are in euros, exchange-rate risk disappears, unlike most exotic destinations. Source: Banco de Cabo Verde.