Taxation is complex and rapidly changing. Detailed advice should besought prior to setting up an investment or operation.An overview of the tax levels is outlined below.IUR (Single Income Tax)is levied on foreign and domestic companies at the rateof 30% of profits for enterprises subject to directassessment. Interest is taxed at 20%. Dividends, profit sharesand gambling profits are taxed at 15%. Non-residents aretaxed at 20% of billing volume for earnings within CapeVerde. The personal income tax threshold for residents is180,000 CVE (€1,632) per annum. Incremental tax ratesincrease from 15% up to 45% for annual incomes above1,890,000 CVE (€17,140).Social Securitycharges are levied at the rate of 8% of earnings paid by theemployee and 15% paid by the employer. In addition,occupational accident insurance is levied at 2% or 6%depending on the category.Value Added Taxis levied at the standard rate of 15%. Hotel services,including rooms, food and beverage sales, are subject toVAT at 6%. A limited number of goods and services areexempt from VAT.Special Consumption Taxis applied to imports of tobacco, alcoholic beverages,luxury products, fuel, old vehicles and art. The rate is 10% except for alcoholic beverages (30%) and old vehicles (upto 150%).Customs Duties are levied on most imported goods.

Real Estate 3% tax is charged on the sale and transfer of real estate.An annual municipal tax is also payable.Stamp Dutyis levied on documentation resulting from sales,transactions and the provision of services.Investment IncentivesApproved foreign investments in tourism projects, whichare realised within a specified time frame, benefit froma range of incentives, including:Exemption from import duties and taxes ongoods required for the construction, fitting out andfurnishing of tourism facilities.Exemption from real estate transfer and propertytaxes.Exemption from profit tax (IUR) for the first fiveyears and exemption of 50% of profit tax for thesubsequent ten years.Tax reductions for expenses incurred training locallabour and for 40% of approved promotional expenses.Legal protection of private property rights.Right to have foreign currency accounts.Unconditional transferability in convertible currencyof net profits and dividends.Free transfer of earning and benefits relating tocustoms procedures for foreign staff.