Cape Verde vs Yemen
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.
๐พ๐ช Yemen โ Yemen Tax System
Yemen's tax system has fragmented amid civil war (since 2015) between the Houthi movement (controlling Sanaa and the north) and the internationally recognised government (IRG, based in Aden). Each side collects taxes in their territory. Income tax nominally up to 15%. The conflict has caused one of the world's worst humanitarian crises. Oil and gas revenues (historically 70% of state income) have mostly stopped due to pipeline attacks and production collapse.
Cape Verde vs Yemen: Key Tax Differences (2026)
๐ฐ Income Tax: ๐จ๐ป Cape Verde has a higher top income tax rate (0โ27.5% vs 0โ15%). ๐พ๐ช Yemen is more favourable for high earners.
๐ VAT/Sales Tax: Cape Verde has a higher consumption tax (15% vs 5%).
๐ข Corporate Tax: ๐พ๐ช Yemen offers a lower corporate rate (20% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐พ๐ช Yemen taxes investment gains at a lower rate (15% vs 25%), benefiting investors.