Cape Verde vs Spain
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.
๐ช๐ธ Spain โ Autonomous Community & Municipal Taxes
Spain's 17 autonomous communities set their own half of income tax. Madrid applies significant reductions while Catalonia has higher regional rates. The Basque Country and Navarre have special tax regimes (concierto econรณmico). Municipal taxes include IBI (property tax) and IAE (business activity tax). Effective top rates (national + regional) range from ~43% (Madrid) to ~54% in some communities.
Cape Verde vs Spain: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ช๐ธ Spain has a higher top income tax rate (0โ27.5% vs 19โ47%). ๐จ๐ป Cape Verde is more favourable for high earners.
๐ VAT/Sales Tax: Spain has a higher consumption tax (15% vs 4โ21%).
๐ข Corporate Tax: Corporate rates are similar in both countries (25% vs 25%).
๐ Capital Gains: ๐จ๐ป Cape Verde taxes investment gains at a lower rate (25% vs 28%), benefiting investors.