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
- Income Tax
- Capital Tax
- Fire Duty
Spanish
- Individual Income Tax
- Corporate Tax
- Non-resident Income Tax
- 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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