Cape Verde – Spain Treaty Enters Into Force

Cape Verde – Spain Treaty Enters Into Force

The treaty was signed on 5 June 2017 by Cape Verde and Spain enters into force on 7 January 2021. This treaty is the first of its kind between the two countries. The treaty will apply as from 1 January 2022 for taxes assessed periodically in respect to income taxes and from 7 January 2021 for all other taxes. 

Taxes Covered

The treaty covers:

Cape Verdean

  1. Income Tax
  2. Capital Tax 
  3. Fire Duty


  1. Individual Income Tax
  2. Corporate Tax
  3. Non-resident Income Tax
  4. Local taxes on income

Permanent Establishment

A permanent establishment will be created if an enterprise furnishes services in either jurisdiction through employees or other engaged personnel and the activities continue for the same or connected project for a period or periods aggregating more than 183 days within any 12 months.

Withholding Tax Rates

Royalties 5%

Interest 5% (exceptions applies)

Dividends – either 0% (beneficial owner is a company holding at least 25% of shares) or 10%

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