Cape Verde vs Guinea
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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๐จ๐ป Cape Verde โ 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.
๐ฌ๐ณ Guinea โ Guinea Tax System
Guinea has progressive income tax up to 40%. TVA (VAT) is 18%. The country holds the world's largest bauxite reserves and significant iron ore deposits, making mining-sector tax revenue critical. Following the September 2021 coup, the junta government (CNRD) has focused on renegotiating mining contracts to increase state revenue. Tax administration is being reformed with IMF support.
Cape Verde vs Guinea: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฌ๐ณ Guinea has a higher top income tax rate (0โ27.5% vs 0โ40%). ๐จ๐ป Cape Verde is more favourable for high earners.
๐ VAT/Sales Tax: Guinea has a higher consumption tax (15% vs 18%).
๐ข Corporate Tax: ๐จ๐ป Cape Verde offers a lower corporate rate (25% vs 35%), which can influence business location decisions.
๐ Capital Gains: ๐จ๐ป Cape Verde taxes investment gains at a lower rate (25% vs 35%), benefiting investors.