Cape Verde vs Eritrea
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.
๐ช๐ท Eritrea โ Eritrea Tax System
Eritrea has a progressive income tax up to 38%. Uniquely, it levies a 2% 'diaspora tax' on Eritrean citizens living abroad โ a controversial policy condemned by the UN. Corporate tax is 30%. The highly centralized command economy under President Isaias Afwerki limits private sector activity. Mining (gold, copper, zinc) is the main formal revenue sector. International sanctions apply.
Cape Verde vs Eritrea: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ช๐ท Eritrea has a higher top income tax rate (0โ27.5% vs 0โ38%). ๐จ๐ป Cape Verde is more favourable for high earners.
๐ VAT/Sales Tax: Cape Verde has a higher consumption tax (15% vs 5%).
๐ข Corporate Tax: ๐จ๐ป Cape Verde offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
๐ Capital Gains: ๐จ๐ป Cape Verde taxes investment gains at a lower rate (25% vs 30%), benefiting investors.