CABO VERDE Law and Practice Contributed by: Nelson Raposo Bernardo, Joana Andrade Correia, Manuel Esteves de Albuquerque and Júlio Martins Júnior, Raposo Bernardo & Associados
IUP benefits An exemption from IUP may be available on the acqui - sition of immovable property for the establishment or expansion of the activity of the investor. VAT and customs duty benefits Exemptions provided for in the VAT Code apply, as well as customs duties incentives as provided for in An exemption from stamp duty is available on the incorporation of companies or an increase of share capital of existing companies, and on financing trans - actions. An exemption from notary and registration fees is available on the incorporation and registration of com - panies. Touristic Utility Status (Estatuto de Utilidade Turística) Cabo Verde may grant Touristic Utility Status to the following types of touristic projects: • installation, granted to new tourist resorts and facilities; • operation and exploitation, granted to existing tourist resorts and facilities; and • refurbishment, granted to existing tourist resorts and facilities in connection with improvements and expansions. Touristic Utility Status generally allows for the follow - ing tax incentives and benefits: the general applicable legislation. Stamp duty and other benefits • CIT credit of up to 30% of the eligible investments made in tourism, touristic promotion activities and real estate tourism project investment; • an exemption from IUP on the acquisition of real estate used for the construction and installation of touristic projects, if granted by the municipality; • a reduced rate of 5% of customs duties on the importation of materials and equipment used in touristic projects; and • exemptions from stamp duty on the financing of tourism investments.
Tax Incentives for Renewable Energies There is a regime for the promotion of independent production and self-production of electricity based on renewable energy sources, which are considered to include water, wind, solar, biomass, biogas or indus - trial, agricultural or urban waste, oceans and tides, and geothermal. Under the regime, renewable energy producers may benefit from the following. CIT benefits A CIT credit is available for up to 20% of the eligible investments made in renewable energies projects. Customs duty benefits A reduced rate of 5% of customs duties and other customs charges applies on the importation of capi - tal goods, raw materials and supplies, finished and semi-finished products, and other materials that are incorporated or used in the production of goods or services involved in the production of electrical energy from renewable sources. IUP and stamp duty Exemptions from IUP and stamp duty are granted on the acquisition of immovable property and other assets related to the investment project or its financ - ing. Interest rate support for micro production of renewable energies Interest rate support of 50% is granted on the interest on loans borrowed from financial institutions by fami - lies and by duly incorporated micro and small compa - nies for the acquisition of equipment and installation services aimed at the micro production of renewable energy in accordance with the applicable legislation. This support shall apply to final consumers covered by the normal low voltage category. Shipping Transport Industry Incentives CIT benefits A CIT credit is available for up to 30% of the eligible investments made in shipping, air and sea transporta - tion projects. Customs duty benefits A reduced rate of 5% from customs duties applies on the importation of shipping material for the mainte -
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