Cape Verde PAYE
Calculator 2025/26

Progressive income tax via DGCI (Direcção Geral das Contribuições e Impostos), INPS social security (8.5% employee, 16.0% employer). Annual/monthly calculations per local bands.

✦ Includes AI Advisor DGCI (Direcção Geral das Contribuições e Impostos) 2025/26 evidence INPS · Income Tax CVE · Cape Verde

Last verified: July 2025 · Source: DGCI (dgci.gov.cv) · IUR Code · Lei do Orçamento 2024/25

Also see: Cape Verde VAT Calculator

2025 Key Facts: DGCI IUR progressive 0%–27.5% on annual income bands. INPS: employee 8.5%, employer 16%. Annual computation. Currency: Cape Verdean escudo (CVE).

Enter Your Details Cape Verde Currency · CVE
Employment RegimeChanges INPS rates
Monthly Gross Salary CVE 500,000
CVE 50,000CVE 5,000,000
Or type exact monthly amountBefore any deductions
CVE
Active DeductionsToggle to include / exclude
INPS
8.5% employee — tax-deductible
Secondary Employment
Flat 30% no deductions

Standard employees contribute 8.5% to INPS and employers contribute 16%. Domestic service follows the official INPS domestic-service regime of 8% employee and 15% employer. No INPS cap — contributions apply to full gross salary.

Monthly Take-Home Pay
CVE 0
After PAYE, INPS & all deductions
Effective Tax Rate 0%
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DGCI IUR 2025/26 Monthly Bands ▾
CVE 0 – 66,0000% — exempt
CVE 66,001 – 132,00016.5% on excess above 66k
CVE 132,001 – 231,000CVE 10,890 + 23.1% on excess
Above CVE 231,000CVE 33,759 + 27.5% on excess

Monthly equivalent of annual IUR bands (annual ÷ 12). INPS employee contribution (8.5%) is deductible before applying IUR rates. Annual tax-free threshold: CVE 792,000.

INPS Social Security Rates 2025 ▾
Employee INPS contribution8.5% of gross salary
Employer INPS contribution16% of gross salary

INPS (Instituto Nacional de Previdência Social) covers all formal sector employees. Employee 8.5% is deductible from taxable income before IUR calculation. IUR due to DGCI by 20th of following month.

Disclaimer: For informational purposes only. Not professional tax or legal advice. Rates based on Cape Verde IUR Code. Verify with DGCI (dgci.gov.cv) or a qualified Cape Verdean tax advisor.
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Cape Verde IUR Tax Guide 2025/26

Cape Verde's personal income tax (IUR — Imposto Único sobre o Rendimento) is administered by the DGCI (Direcção Geral das Contribuições e Impostos). The system uses four progressive annual bands from 0% to 27.5%, with a tax-free threshold of CVE 792,000 per year (approximately CVE 66,000 per month). IUR is due to the DGCI by the 20th of the following month.

All formal sector employees must contribute to INPS (Instituto Nacional de Previdência Social) — 8.5% of gross salary, with employers contributing 16%. The employee's INPS contribution is deductible from taxable income before IUR is calculated, reducing the tax base. INPS is remitted separately to the INPS institute.

Cape Verde Tax Bands

Annual Income (CVE) Rate Cumulative Tax
CVE 0 – 792,0000%CVE 0
CVE 792,001 – 1,584,00016.5%Up to CVE 130,680
CVE 1,584,001 – 2,772,00023.1%Up to CVE 405,228
Above CVE 2,772,00027.5%27.5% on excess above CVE 2,772,000

The table below shows Cape Verde's 2025/26 annual IUR bands (monthly equivalents shown). This calculator applies these bands to your monthly gross salary after the INPS deduction.

Cape Verde Tax FAQ

Common PAYE Questions

What are the Cape Verde IUR tax bands for 2025/26?

Four annual bands: 0% on first CVE 792,000; 16.5% on CVE 792,001–1,584,000; 23.1% on CVE 1,584,001–2,772,000; 27.5% above CVE 2,772,000. Monthly equivalent: exempt up to CVE 66,000/month. INPS employee contribution (8.5%) is deducted before applying these rates.

What is INPS and how much do employees contribute?

INPS (Instituto Nacional de Previdência Social) is Cape Verde's mandatory social security fund. Employees contribute 8.5% of gross salary and employers contribute 16%. The employee 8.5% contribution is fully deductible from taxable income before IUR is calculated, reducing your tax liability.

Who administers income tax in Cape Verde?

The DGCI (Direcção Geral das Contribuições e Impostos) administers income tax in Cape Verde. Employers must withhold IUR from employee salaries monthly and remit by the 20th of the following month. INPS contributions are administered separately by the INPS institute.

When must employers pay IUR to the DGCI?

IUR (income tax withholding) must be filed and paid to the DGCI by the 20th of the month following the payroll month. Employers must submit monthly returns even when no tax is due. Late payments attract penalty interest under the Cape Verde tax code.

What is the tax-free threshold in Cape Verde?

The annual tax-free threshold is CVE 792,000 (approximately CVE 66,000 per month). Employment income below this amount is exempt from IUR. The progressive rates above the threshold are 16.5%, 23.1%, and 27.5% — a maximum top rate of 27.5% applies to income above CVE 2,772,000 per year.

Does Cape Verde have SDL or other employer levies?

Cape Verde does not have a Skills Development Levy (SDL) or Workers' Compensation Fund (WCF). Employers are responsible for INPS (16% employer contribution) and IUR withholding only. Cape Verde's payroll obligations are simpler than some regional peers.

Official evidence

Sources & verification

This high-stakes calculator links the authority sources, method notes, test cases, and limitations used to check the numbers shown on this page.

Last verified 2025-07-01

Cape Verde - high risk - AfroTools source audit

Official source links

Law, regulation, or version

Last verified: July 2025 · Source: DGCI (dgci

Calculation methodology

The calculator annualizes salary where needed, applies modeled employee statutory deductions, runs taxable income through the country PAYE bands, and derives net pay from gross pay minus modeled PAYE and statutory deductions. Employer-cost lines are informational where the page exposes them.

Known limitations

  • Informational estimate only. It is not professional tax, legal, payroll, or filing advice.
  • Sector-specific, regional, treaty, relief, and special-regime rules may not be fully modeled.
  • Confirm filing, registration, and remittance duties with the official authority or a qualified adviser before submission.

Test-case examples

Input: Annual gross salary: 0.
Expected: PAYE and statutory deductions should be 0 and net pay should not be negative.
Why: Establishes the zero-income baseline and catches negative liability regressions.

Input: Annual gross salary entered in the page currency.
Expected: Taxable income is processed through the visible country bands and net pay equals gross pay minus modeled deductions.
Why: Confirms the calculator is using the documented methodology rather than an opaque flat estimate.

Change history

  • 2026-05-02: Trust and verification panel added with source links, methodology, limitations, and report-error CTA.

AfroTools calculators are decision-support tools. Always confirm filing, registration, and remittance duties with the linked authority or a qualified local adviser.

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