Cabo Verde Tax Calculator (2026)
Income tax rates and take-home pay for Cabo Verde
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Cabo Verde Income Tax Brackets (2026)
| Bracket | Income Range | Rate |
|---|---|---|
| First bracket | CVE 0 - CVE 960,000 | 16.5% |
| Second bracket | CVE 960,000 - CVE 1,800,000 | 23.1% |
| Third bracket | CVE 1,800,000+ | 27.5% |
Personal allowance: CVE 220,000
Social security contribution (employee)
| Bracket | Income Range | Rate |
|---|---|---|
| Standard employee contribution | CVE 0+ | 8.5% |
Key Facts
Tax Year
2026
Currency
CVE
Top Rate
27.5%
Brackets
3 brackets
Allowance
CVE 220,000
Social Contributions
1 item
Assumptions
- · Model represents a resident employee under the declarative method (Category A income).
- · Tax-free allowance of CVE 220,000 applied as a standard relief against taxable income.
- · Personal deductions (health, rent, education, alimony) capped at CVE 12,500–25,000 are not modeled individually; a representative allowance-based approach is used instead.
- · Dependent allowances (CVE 5,000 per dependent up to CVE 25,000 total) are not included; default person has no dependents.
- · Social security employee contribution (8.5%) is deductible from gross income before income tax.
- · Non-habitual resident regime (10% flat rate) and other special regimes are not modeled; standard declarative brackets apply.
- · No voluntary or employer-only contributions included.
- · VAT, property tax, and consumption taxes are not included in net salary calculation.
Frequently asked questions
How much income tax do I pay in Cabo Verde?
Cabo Verde uses a progressive tax system with three income brackets. You pay 16.5% on income up to CVE 960,000, 23.1% on income between CVE 960,000 and CVE 1,800,000, and 27.5% on income above CVE 1,800,000. However, you get a tax-free allowance of CVE 220,000 that reduces your taxable income before these rates apply.
Do I have to pay social security contributions in Cabo Verde?
Yes, as an employee in Cabo Verde you must contribute 8.5% of your gross income to social security. The good news is that this contribution is deductible from your gross income before income tax is calculated, which lowers your overall tax burden.
What is the non-habitual resident regime in Cabo Verde?
Cabo Verde does offer a non-habitual resident regime with a flat 10% tax rate for qualifying individuals, but this special regime is not included in the standard tax calculator. If you think you might qualify as a non-habitual resident, you should consult with a local tax professional to determine your eligibility and potential tax savings.
Are there any deductions I can claim against my income tax in Cabo Verde?
Yes, Cabo Verde allows various personal deductions including health expenses, rent, education costs, and alimony, though these are typically capped at CVE 12,500 to CVE 25,000 depending on the type. The tax calculator uses a representative allowance-based approach, but you should keep records of eligible expenses and work with a local accountant to maximize your deductions.
Does my take-home pay include VAT and other consumption taxes?
No, the take-home pay calculation on this calculator shows your net income after income tax and social security contributions only. VAT, property tax, and other consumption taxes are not included, so your actual spending power may be lower depending on the goods and services you purchase in Cabo Verde.
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