Somalia vs Cape Verde
Tax Rate Comparison
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π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
πΈπ΄ Somalia β Somalia Tax System
Somalia's formal tax system is extremely limited. The Federal Government has been rebuilding fiscal capacity since 2012 after decades of civil war. Tax revenue is less than 2% of GDP. Customs duties at ports (especially Mogadishu) are the main revenue source. Al-Shabaab controls much of the south and runs a parallel extortion-based taxation system. Income tax legislation exists on paper but enforcement is minimal.
π¨π» Cape Verde β 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.
Somalia vs Cape Verde: Key Tax Differences (2026)
π° Income Tax: πΈπ΄ Somalia has a higher top income tax rate (0β30% vs 0β27.5%). π¨π» Cape Verde is more favourable for high earners.
π VAT/Sales Tax: Cape Verde has a higher consumption tax (10% vs 15%).
π’ Corporate Tax: π¨π» Cape Verde offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
π Capital Gains: πΈπ΄ Somalia taxes investment gains at a lower rate (0% vs 25%), benefiting investors.