Cabo Verde
Tools

Cabo Verde's tax system is administered by the Direccao Nacional de Receitas do Estado (DNRE) and applies a progressive personal income tax known as the Imposto Unico sobre o Rendimento (IUR) with rates from 0% to 35%, denominated in the Cape Verdean Escudo (CVE). The IUR is a unified income tax covering employment, business, and investment income under a single framework. Employees contribute to the Instituto Nacional de Previdencia Social (INPS) for social security, with the employee share at approximately 8.5% of gross salary and the employer contributing around 16%, covering pensions, health care, and family allowances. The combined social contribution rate of approximately 24.5% is among the higher rates in West Africa, reflecting the archipelago's comprehensive social protection system. Cabo Verde applies a standard VAT rate of 15% on most goods and services, with reduced rates and exemptions for essential items including basic foodstuffs, pharmaceutical products, and educational materials. As an island nation, import duties also play a significant role in the fiscal framework. The fiscal year follows the calendar year, and employers must withhold and remit PAYE monthly within prescribed deadlines. Cabo Verde's service-based economy is driven by tourism and remittances, with relatively high formal sector employment compared to many African nations. The country's fixed exchange rate peg to the Euro provides monetary stability for businesses and investors. AfroTools provides free DNRE-compliant IUR income tax calculators, INPS contribution estimators, VAT tools, and salary breakdown calculators for Cabo Verde. All tools are updated for the current tax year and available free of charge.