Cape Verde vs Eritrea
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π¨π» Cape Verde β Cape Verde Tax System
Cape Verde (Cabo Verde) has a progressive income tax system up to 27.5%. IVA (VAT) is 15%. As a small island developing state with few natural resources, the economy depends on tourism and remittances. The country has a relatively good governance record for West Africa and is pursuing double taxation agreements. A 10% withholding tax applies to dividends and interest.
πͺπ· Eritrea β Eritrea Tax System
Eritrea has a progressive income tax up to 38%. Uniquely, it levies a 2% 'diaspora tax' on Eritrean citizens living abroad β a controversial policy condemned by the UN. Corporate tax is 30%. The highly centralized command economy under President Isaias Afwerki limits private sector activity. Mining (gold, copper, zinc) is the main formal revenue sector. International sanctions apply.
Cape Verde vs Eritrea: Key Tax Differences (2026)
π° Income Tax: πͺπ· Eritrea has a higher top income tax rate (0β27.5% vs 0β38%). π¨π» Cape Verde is more favourable for high earners.
π VAT/Sales Tax: Cape Verde has a higher consumption tax (15% vs 5%).
π’ Corporate Tax: π¨π» Cape Verde offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
π Capital Gains: π¨π» Cape Verde taxes investment gains at a lower rate (25% vs 30%), benefiting investors.