Cape Verde vs Sao Tome and Principe
Tax Rate Comparison
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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.
๐ธ๐น Sao Tome and Principe โ Sao Tome & Principe Tax System
Sao Tome and Principe is a small island nation in the Gulf of Guinea with progressive income tax up to 25%. IVA (VAT) is 15%. The economy has long been dominated by cocoa exports and foreign aid. Offshore oil potential (Joint Development Zone with Nigeria) has not yet materialized in significant production. The country joined the EITI (Extractive Industries Transparency Initiative).
Cape Verde vs Sao Tome and Principe: Key Tax Differences (2026)
๐ฐ Income Tax: ๐จ๐ป Cape Verde has a higher top income tax rate (0โ27.5% vs 0โ25%). ๐ธ๐น Sao Tome and Principe is more favourable for high earners.
๐ VAT/Sales Tax: Both countries have comparable consumption tax rates (15% vs 15%).
๐ข Corporate Tax: Corporate rates are similar in both countries (25% vs 25%).