Income Tax in Cape Verde

Who this applies to

Individuals resident in Cape Verde, on the income in the IRPS Code, and non-residents on income obtained in Cape Verde (IRPS Code). Sole traders under REMPE: see corporate income tax for the single tax. Currency: Cape Verdean escudo (CVE); tax year: calendar year.

Rates, bands and thresholds

Basis for 2026: the law is the State Budget 2026 (Lei 69/X/2025, in force 1 January 2026), the DNRE Calendario Fiscal 2026 and the base code as published. No consolidated code was found, and Lei 116/IX/2021 could not be opened, so a row resting on original code text carries that limit. The Amending Budget of 13 August 2026 changed no tax rate we could find.

Item	Amount	Tax year	Official URL
Band 1	16.5% up to CVE 960,000 a year	2026	https://boe.incv.cv/Bulletins/Download/1952
Band 2	23.1% over CVE 960,000 up to CVE 1,800,000	2026	same
Band 3	27.5% over CVE 1,800,000	2026	same
Exempt taxable income (art. 45(2))	Up to CVE 220,000	2026	same
Monthly employee withholding, gross R up to 80,000 (art. 70)	0.15R - 5,500	2026	same
Over 80,000 to 150,000	0.21R - 10,300	2026	same
Over 150,000	0.25R - 16,300	2026	same
Category B and C withholding on account	20%	2026	same
Category D withholding, final	20%; 10% for art. 14(f) and (j)	2026	same
Category E withholding, final	1% on art. 17(1)(a) to (d); 20% on art. 17(2)	2026	same
Family deduction from tax (art. 53)	CVE 5,000 each, maximum CVE 25,000	2026	same
Deduction of 10% of rent, housing loan interest, education	Maximum CVE 12,500	2026	same
Non-habitual resident	Taxed as such for 7 consecutive years from the year of registration	2026	https://boe.incv.cv/Bulletins/DownloadAct?id=89137

The base

Five categories are in the DPR table: A employment and pensions, B business and professional, C property, D capital, E gains. Category A is taxed by final progressive withholding unless the person opts to aggregate; on aggregation withholding becomes a payment on account. Withheld tax on account gives a refund if above the tax; art. 53 to 56 deductions do not. Health expenses (with a prescription) and court-ordered maintenance give a 10% deduction from tax, capped at CVE 25,000 (art. 54). Married couples: each person's withholding is computed separately and added. Pensioners use the same formula.

Resident: more than 183 days, continuous or not, in any 12 months; or a home at 31 December that is the habitual residence; or public duties abroad for Cape Verde; or specified crew.

Deadlines and filing

Filed electronically on the Porton di Nos Ilha portal (the calendar names www.portondinosilha.cv).

Who	Form	Date in 2026
Category A only, optional	Modelo 112	31 March
Category B, C, transparent-company partners, non-residents	Modelo 112	31 May
Organised accounts	Modelo 1B	31 May
Category B, annual accounting return	DAICF	30 September for category B holders; organised accounts 31 July
Category B instalments	Portal	End March, August, November: the calendar says 30% of prior-year tax each; for organised-accounts Category B, IRPC art. 96(3) says 15% of prior-year taxable profit in 3 equal parts
Payers: withheld tax and DPR	DPR	15th of next month

How to file Modelo 112

1. Hold a NIF (Modelo 109 is the registration form on the DNRE page).
2. Log in to the portal.
3. Complete Modelo 112 following the DNRE filling instructions on that page.
4. Submit by the date above. A correction goes in within 30 days of the fact that changes declared income (IRPS art. 57(3)).

Penalties and interest

The Calendario Fiscal says late or missing returns and unpaid tax are infractions under the Regime Juridico das Infracoes Tributarias Nao Aduaneiras, with fines and late-payment interest. That regime could not be opened, so no amount is given here.

Cross-border points

Non-residents without a permanent establishment suffer the withholding rates; art. 51 makes them final with no aggregation. Category A non-resident code A.4 is 20% in the DPR table. The treaty list was not read.

Two worked examples that recompute

Case 1, employee on CVE 60,000 a month: withholding is 0.15 x 60,000 - 5,500 = CVE 3,500.

name: Monthly withholding, gross 60,000
inputs:
  r: 60000
steps:
  - wh: r * 0.15 - 5500
expected:
  wh: 3500.00

Case 2, the decision between bands: CVE 100,000 is in the middle band, so 0.21 x 100,000 - 10,300 = CVE 10,700. Using the first formula would give CVE 9,500, CVE 1,200 too little.

name: Band choice, gross 100,000
inputs:
  r: 100000
steps:
  - right: r * 0.21 - 10300
  - wrong: r * 0.15 - 5500
  - gap: right - wrong
expected:
  right: 10700.00
  gap: 1200.00

Ask the client first

• Resident under the 183-day or home test?
• Which income categories?
• Aggregating category A or not?
• Organised accounts or REMPE for business income?
• Non-habitual resident registered? Which year?
• Dependants and documented expenses?

Sources

Source	URL	Read on
Lei 69/X/2025, State Budget 2026, BO I 133 sup. 1, 31 Dec 2025: arts 29, 30, 32, 84, 99, 100 and Anexo I read	https://boe.incv.cv/Bulletins/DownloadAct?id=89137	2026-11-01
Lei 1/XI/2026, Amending Budget 2026, BO I 90, 13 Aug 2026: searched for tax-rate changes, none found	https://boe.incv.cv/Bulletins/DownloadAct?id=112975	2026-11-01
Lei 78/VIII/2014, Codigo do IRPS, BO I 81, 31 Dec 2014 (original text): arts 21, 45 to 53, 57, 70 to 74 read	https://boe.incv.cv/Bulletins/Download/1952	2026-11-01
DNRE, Calendario Fiscal 2026, updated 11 Jun 2026: all months read	https://www.mf.gov.cv/documents/54571/0/Calendario_Fiscal_2026_PEC_Vers%C3%A3o_Atualizado_110626.pdf/7f524ec2-1b35-2f33-8936-42e8b752516e?version=1.0&t=1781260657225	2026-11-01
DNRE, DPR FAQ v6: category table and Category A answers read	https://www.mf.gov.cv/documents/54571/273413/DPR%20%E2%80%93%20Perguntas%20Frequentes_FAQ_Vers%C3%A3o%206.pdf	2026-11-01
DNRE, forms and leaflets page: list read	https://www.mf.gov.cv/web/dnre/dire%C3%A7%C3%A3o-geral-das-contribui%C3%A7%C3%B5es-e-impostos	2026-11-01

Not yet confirmed: Lei 116/IX/2021 and every other amendment not listed in Sources; penalty amounts; interest rate. Which Category B instalment base applies, calendar or art. 96(3); Whether the employee INPS 8.5% is deductible (the old skill said so; also whether the withholding base is before or after it, the FAQ says "valor base de incidencia"); how the CVE 220,000 exemption interacts with the bands once exceeded; whether the 2014 withholding formula is the one in force; the FAQ also mentions CVE 420,000 and 35,000 a month for 2015; documented health, education and housing expenses scope; category E article references after amendment; non-resident rate equal to resident rate in all cases.