CABO VERDE Law and Practice Contributed by: Nelson Raposo Bernardo, Joana Andrade Correia, Manuel Esteves de Albuquerque and Júlio Martins Júnior, Raposo Bernardo & Associados
nance, production and repair of shipping and respec - tive equipment. 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. Job Creation Incentives Entities taxed under the verification method are enti - tled to deduct the following amounts for each perma - nent job created: • CVE26,000 for each job created in the municipali - ties of Boa Vista, Praia and Sal; • CVE30,000 for each job created in the remaining municipalities; and • CVE35,000 in the case of a disabled person. Media, Telecommunications and the Internet The importation of goods, materials, equipment, vehi - cles and other equipment exclusively for the purpose of telecommunications and media is exempt from customs duties. Incentives for the Importation of Vehicles The importation of the following heavy vehicles for the collective transport of passengers is exempt from VAT and excise duty if such vehicles are not aged more than six years, and is subject to a reduced rate of 5% of customs duties: • heavy passenger vehicles for the collective trans - port of passengers comprising more than 30 seats, including the driver, when imported by duly licensed companies operating in the respective sector; • heavy passenger vehicles for the collective trans - port of passengers comprising more than 12 seats, including the driver, when imported by a public transporter with the respective permit that is in the process of replacing licensed vehicles, as con - tained in the General Legal Regime of Transport in Motor Vehicles ( Regime Jurídico Geral de Trans- portes em Veículos Motorizados ); • heavy passenger vehicles intended for school transport, duly equipped, comprising more than 23
seats, including the driver, when imported by an educational entity duly authorised by the compe - tent ministry, local authorities and public transport - er, provided that those vehicles are duly licensed and authorised by the competent authorities; and • heavy goods vehicles with three or more axles, as well as heavy vehicles with two or three axles, intended solely for towing trailers and semi-trailers for the carriage of goods (in this specific case, there is no limitation regarding the age of the vehi - cle). During 2026, the import of heavy passenger vehicles, properly equipped, with more than 30 seats, includ - ing the driver’s seat, exclusively intended for the transportation of tourists and luggage is exempt from excise duties and VAT. This exemption applies when the importation is carried out by public carriers duly licensed by the Directorate General of Road Transport. This incentive does not apply to vehicles aged more than six years. These imports are also subject to customs duties at the reduced rate of 5%. During 2026, the import of light passenger vehicles, in new condition, intended exclusively for the opera - tion of taxi services is exempt from excise duties and subject to a reduced import duty rate of 5%. The import of four-by-four (4x4) vehicles for adventure tourism is also exempt from excise duties for 2026 when imported by companies operating in the adven - ture tourism sector and duly licensed by the compe - tent authorities. Incentives Under the Young Start-Ups Programme Incentives for corporate finance Resident or non-resident entities with a PE in Cabo Verde that make cash capital contributions to compa - nies eligible under the Young Start-Ups Programme, or to companies based in municipal territories where the average GDP per capita in the last three years is below the national average, as well as to micro and small companies, can deduct part of these contribu - tions up to 2% of the tax assessed in the previous tax year, provided that:
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