Stimulatory measures

Incentives by sector I

In 2013, an Investment Act was adopted that was designed to provide incentives for and structure the investments in various sectors. A development company was founded for this purpose, Cabo Verde Investimentos (CVI), which serves as the initial contact point for companies with respect to all investments. CVI is the administrator of the Investment Act and reports directly to the Ministry of Tourism, Investment and Economic Development.

General tax rebates in accordance with the Investment Act
• Tax rebate per created job ranging from €236 to €317 per job.
• Tax rebate of 50% of the costs incurred for employee courses and training.
• Customized tax regimes with more tax benefits for investments in excess of €90 million
and the creation of at least 100 direct jobs (in non-urban areas the minimum amount of the investments is lower, €45 million).
• Investments with a pronounced international dimension come into consideration for customized tax regimes with more tax benefits.

Maritime sector
• Tax rebate of 50% of investments related to the maritime sector.
• Imports of material and equipment directly related to the maritime sector free of customs duties.
• Investments in real estate related to this sector are, subject to approval from the authorities, also regarded as investments.

ICT sector
• Tax rebate of 50% of investments related to the ICT sector.
• Imports of material and equipment directly related to the ICT sector free of customs duties.
• Investments in real estate related to this sector are, subject to approval from the authorities, also regarded as investments.

Services sector (including tourism)
• Tax rebate of 50% of investments related to the services sector.
• Imports of material and equipment directly related to the services sector free of customs duties.
• Investments in real estate related to this sector are, subject to approval from the authorities, also regarded as investments.

Incentives per sector II

It is important to define the sector to which an investment relates in advance, as incentives cannot be implemented in two sectors simultaneously. Drawing up a carefully-considered investment plan will reduce the risk of missing tax concessions.

Industrial sector
• Tax rebate of 50% of investments related to the industrial sector.
• Imports of material and equipment directly related to the industrial sector of no older than5 years free of customs duties.
• Investments in real estate related to this sector are, subject to approval from the authorities,
also regarded as investments (investments in mining activities include investments in landand grounds).

Renewable and sustainable energy
• Tax rebate of 50% of investments related to renewable and sustainable energy.
• Imports of material and equipment directly related to renewable and sustainable energy free of customs duties.
• Investments in real estate related to this sector are, subject to approval from the authorities, also regarded as investments.

International Business Centre (IBC)
• Tax rebate of between 2.5% and 5.0% for the creation of jobs within the IBC.
• Activities in the IBC are free of VAT.
• Issues of shares and increases in share capital of entities within the IBC are exempt from capital tax and transfer tax.

incentives by sector III

The application of the stimulatory measures referred to in the investment act is subject to the maintenance of the financial records in accordance with the local GAAP regulations, the SNCRF (sistema de normalização contabilística e de relato financeiro). The SNCRF regulations are largely in line with the principles of the IASB to provide assurances for international comparability.

Aviation sector
• Tax rebate of 50% of investments related to the aviation sector.
• Imports of material and equipment directly related to the aviation sector free of customs duties.
• Investments in real estate related to this sector are, subject to approval from the authorities, also regarded as investments.

Agriculture and fisheries sector
• Tax rebate of 30% of investments related to the agriculture and fisheries sector.
• Imports of seed, material and equipment free of customs duties.
• Investments in real estate related to this sector are, subject to approval from the authorities, also regarded as investments.

Financial sector
• International financial institutions benefit from a tax-free period until the end of 2017,
and a reduced rate of 2.5% after 2017.
• Venture capital funds, saving funds and pension funds founded under Cabo Verdean law
benefit from a total exemption from income tax.
• Holdings/holding companies do not need to recognize the results from sale and purchase transactions with non-associated entities in which they have held an interest for at least 12 months in the statement of taxable income.