Cabo Verde – 2025 State Budget Law proposal

II - Maintenance of Tax Incentives

The following tax incentives and tax benefits are proposed to be maintained in 2025: 

• R&D for companies;

• Young Start-up (“Start-up Jovem”);

• Profit Reinvestment;

• Company Financing;

• Emigrants;

• Exemption on imports carried out by local councils;

• Exercise of Professional Activity Provided Remotely Outside the National Territory;

• Incentives for the importation of taxis;

• Incentives for the importation of passenger transport vehicles;

• Importation of Heavy Transport Vehicles for Tourists;

• Importation of Off-Road Vehicles for Adventure Tourism;

• Electric Mobility;

• Importation of equipment for quality certification;

• Incentive for the construction of spaces for sports practices;

• Fiscal and administrative measures for the implementation of the international submarine fiber optic cable project;

• Exemption from payment of fees for fishing licenses for artisanal fishing vessels up to 5 tons;

• Customs incentives within the scope of the digital terrestrial television implementation project

• Incentives for distance learning;

• Renewable Energy Production and microproduction;

• Incentives for water desalination and renewable energy production aimed at irrigated agriculture;

• Incentives for the importation of animals, food, medicines, irrigation materials, greenhouses, food transport equipment, and agricultural implements;

• Recycling and Promotion of Alternative Products to Single-Use Plastic Items;

• Industrial Production of Aggregates;

• Incentives for recreational and sports vessels;

• Incentive for fish canning activities.

III - Indirect Taxes / Customs

VAT

• Electricity and water consumption: the VAT rate applicable to the supply of electricity and water to private persons is 8%.

• Special Regime for the Application of VAT on the Transfer of Goods and Services Subject to Prices Set by Administrative Authority: Remains in force.

Excise Duties

• Specific Tax on Tobacco: Proposed increase to 150 CVE (currently 120 CVE) on importation and national production, due per pack of cigarettes.
• Specific Tax on Alcohol: Increase in the specific tax rate on alcoholic beverages.

Customs Statistical Tax: Remains in force, including the already provided exemptions and exclusions.