Cape Verde vs Israel
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.
๐ฎ๐ฑ Israel โ Municipal & Local Authority Taxes
Israel's 255 local authorities (cities, regional councils) levy Arnona (property tax/municipal rate) on residents and businesses. Arnona rates vary significantly by local authority โ Tel Aviv and Herzliya have higher rates than peripheral areas. There is a national equalization grant system to help weaker municipalities. Employers pay National Insurance (Bituach Leumi) and health tax to the national level. The tax authority (ITA) is national; local authorities have no income tax powers.
Cape Verde vs Israel: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ฑ Israel has a higher top income tax rate (0โ27.5% vs 10โ50%). ๐จ๐ป Cape Verde is more favourable for high earners.
๐ VAT/Sales Tax: Israel has a higher consumption tax (15% vs 18%).
๐ข Corporate Tax: ๐ฎ๐ฑ Israel offers a lower corporate rate (23% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐จ๐ป Cape Verde taxes investment gains at a lower rate (25% vs 30%), benefiting investors.