Detailed comparison
| Side-by-side comparison of taxation, cost of living and scores between the two countries. |  France | |
|---|---|---|
| Taxation | ||
| Dividend tax | 10%, Edge to this country | 31.4% |
| Capital gains tax | 100%, Edge to this country | 31.4% |
| Corporate tax | 20%, Edge to this country | 25% |
| Wealth tax | None | Yes, IFI (real estate only) |
| Direct inheritance | 0%, Edge to this country | 45%Scale5-45% |
| Cost and real estate | ||
| Monthly FIRE budget | €1,700, Edge to this country | €2,700 |
| Cost-of-living score | 78.4, Edge to this country | 38.5 |
| Reference city | Praia | Paris |
| City-center 2-bed rent | €450, Edge to this country | €2,450 |
| Safety and FIRE score | ||
| Insecurity | 0.0, Edge to this country | 2.0 |
| FIRE Ultimate V3 score | 96.0, Edge to this country | 64.6 |
Verdict
- Cape Verde wins on capital taxation: gains at 1% against 31.4%, foreign dividends at 10% with a tax credit, 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 three countries.
- Verdict: for an investor living off capital gains on shares and comfortable with Lusophone culture, Cape Verde offers a massive tax saving 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?
Yes. Cape Verde applies a final flat charge of 1% on capital gains from the sale of foreign shares and ETFs (IRPS category E), 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 only with Portugal, Guinea-Bissau, and Macao. 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.