Cape Verde vs Brazil
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.
๐ง๐ท Brazil โ State & Municipal Taxes
Brazil has one of the world's most complex tax systems. States levy ICMS at 7%โ18% varying by state. Municipalities levy ISS (services tax) at 2%โ5% and IPTU (urban property tax). A sweeping tax reform (EC 132/2023) is gradually replacing ICMS/ISS with unified IBS and CBS taxes through 2033. States impose ITCMD (inheritance/gift tax) up to 8%.
Cape Verde vs Brazil: Key Tax Differences (2026)
๐ฐ Income Tax: Cape Verde and Brazil have similar top income tax rates (0โ27.5% vs 0โ27.5%).
๐ VAT/Sales Tax: Brazil has a higher consumption tax (15% vs ~27.5% combined).
๐ข Corporate Tax: ๐จ๐ป Cape Verde offers a lower corporate rate (25% vs 34%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ท Brazil taxes investment gains at a lower rate (22.5% vs 25%), benefiting investors.