Cape Verde vs Lesotho
Tax Rate Comparison
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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.
π±πΈ Lesotho β Lesotho Tax System
Lesotho is a landlocked enclave within South Africa with progressive income tax up to 35%. VAT is 15%. The country's economy is closely tied to South Africa β customs revenues from SACU (Southern African Customs Union) provide a major share of government income. Textile exports (especially to the US under AGOA) and diamond mining are key sectors. Water royalties from the Lesotho Highlands Water Project also contribute.
Cape Verde vs Lesotho: Key Tax Differences (2026)
π° Income Tax: π±πΈ Lesotho has a higher top income tax rate (0β27.5% vs 0β35%). π¨π» Cape Verde is more favourable for high earners.
π VAT/Sales Tax: Both countries have comparable consumption tax rates (15% vs 15%).
π’ Corporate Tax: Corporate rates are similar in both countries (25% vs 25%).