Doing Business In... 2019

Last Updated August 02, 2019

Cabo Verde

Law and Practice

Authors



Raposo Bernardo is an international full-service law firm, with practices in Africa (Angola, Cabo Verde, Guinea Bissau, Mozambique, and São Tomé and Príncipe) and Europe (Portugal, Poland and Spain). In Cabo Verde, with a team of 16 lawyers locally and abroad, the firm offers more than 20 years of local experience by participating in the most innovative and relevant projects, regularly representing the interests of national and international players, investment and commercial banks, investment funds, financial intermediaries, governmental entities, and public sector and private agents in legal matters concerning banking, energy, aviation, pharmaceutical, tourism and leisure, and construction and infrastructure. The firm’s expertise includes advising on operations such as corporate finance and major project finance; large M&A transactions; privatisations; PPP projects; large infrastructure projects; drafts of banking, financial markets and insurance legislation; and working closely with major international law firms.

Cabo Verde law is based on the civil law system.

The Constitution of Cabo Verde and relevant legislation provide for a judiciary independent from the executive.

The judicial system in Cabo Verde is based on three levels of appreciation by different courts:

  • First Instance Courts (trial court);
  • Courts of Appeal; and
  • the Supreme Court.

As a rule, any case shall be presented at the First Instance Courts and, depending on several requisites (such as the value of the case or the subject matter), the party that loses the case may appeal to the Court of Appeal and, after (as a second level of appeal), to the Supreme Court, which only analyses questions of law.

There are no restrictions on the entry of foreign investments. All investors, regardless of their nationality, have the same rights and are subject to the same duties and obligations under the laws of Cabo Verde. A national partner is not required and there are no limitations to the distribution of profits or dividends abroad.

The rules governing foreign investment are similar to those applicable to domestic investment. No special registration or notification to any authority regarding foreign investment is required.

However, there may be mandatory registration/approvals for specific activities – such as in the banking, finance, aviation, maritime and telecommunications sectors – which is applicable both for foreign investment and domestic investment.

There are no restrictions on the entry of foreign investments and the rules governing foreign investment are similar to those applicable to domestic investment.

There are no restrictions on the entry of foreign investments and the rules governing foreign investment are similar to those applicable to domestic investment.

The law recognises the right of an investor to challenge any decision of the administrative authorities in court. The scope of the legal challenge depends on the nature of the decision by the administrative authority.

The court does not have mandatory deadlines to issue a decision. It can take six months or more.

The following types of companies are the most relevant provided for in the Cabo Verde Companies Code and are frequently chosen by foreign investors aiming to start their own enterprise structure in Cabo Verde. The choice of one of these structures depends on many factors, such as the type of business to be implemented, the simplicity or size of the operations, the amount of capital to be invested, the possibility to transfer ownership freely and disclosure rules about the aforesaid ownership.

The most commonly used forms are public limited companies and limited companies, since they are more operational.

Public Limited Companies (Sociedade Anónimas)

This type of company has the following characteristics.

  • Minimum share capital – EUR0.01.
  • Minimum number of shareholders – two. Single-shareholder public limited company incorporation is permitted if the single shareholder is another company.
  • Forms of incorporation – as a general rule, public limited companies are incorporated by means of a private document (articles of association). Additional formalities may apply if the shareholders perform contributions in kind.
  • Share transfers – as a rule, transfer of shares is free and may be carried out by means of an agreement between the parties.
  • Governing bodies – the governing bodies of a public limited company are:
      1. the management board, which may be composed of a single member;
      2. the shareholder meeting; and
      3. the supervisory board.
  • Shareholders’ liability – limited to capital subscribed, but shareholders are jointly and severally liable for all contributions foreseen in bylaws.

Limited Companies (Sociedade por Quotas)

This type of company has the following characteristics.

  • Minimum share capital – EUR0.01.
  • Minimum number of shareholders – two. Single-shareholder limited liability company incorporation is permitted if the single shareholder is an individual.
  • Forms of incorporation – as a general rule, limited companies are incorporated by means of a private document (articles of association). Additional formalities may apply if the shareholders perform contributions in kind.
  • Share transfers – the transfer of shares may be carried out by means of an agreement between the parties, except when the incorporation has been made through public deed.
  • Governing bodies – management with one or more directors. An auditor is not mandatory.
  • Shareholders’ liability – limited to capital subscribed, but shareholders are jointly and severally liable for all contributions foreseen in bylaws.
  • Flexibility of capital - the formalities required to transfer shares depend on the type of shares issued by the company. Bearer shares are transferred by delivery of the share certificates to the transferee. Nominative shares are transferred by endorsing the share certificate in the name of the transferee and notice must be given to the company for the purposes of registration in the share book. Book-entry shares are transferred by registration in the transferee’s bank account. The only limit on the free transfer of shares may arise from any pre-emption rights that have been established by the shareholders in the articles of association.

A public limited company (Sociedade Anónima, or SA) is the form traditionally adopted by larger companies. It is primarily characterised by the fact that it has a more complex organisational structure than, for example, the limited company. The public limited company form also provides greater flexibility when it comes to share capital in so far as no special procedure is required for the transfer of shares.

The procedural steps to set up a company are as follows.

  • Approval of name – the first step in this type of process is to gain approval of the name of the company to be set up and to indicate what type of company it will be.
  • Head office of the company – the company must indicate the location where it will carry out its commercial activity.
  • Corporate structure – the identification documents or commercial certificates, according to whether individuals or legal entities are involved, of the shareholders or quota-holders who will make up the corporate structure of the company are required. If the individuals or legal entities are foreign, the above documents must be legalised at the Cabo Verdean consulate in the country of origin or apostilled. If the shareholders or quota-holders are legal entities, it will also be necessary to have the written resolution – approving the setting up of the Cabo Verdean company and the shareholding to be held by the legal entity in question.
  • Powers of attorney – in the event that the share/quota-holders are not available to travel to Cabo Verde to sign the documentation necessary for the process of incorporating the company, they will have to execute powers of attorney granting powers to representatives in Cabo Verde to enable the latter to deal with the respective legal steps of incorporation.
  • Articles of association – this document establishes the rules that will govern the operation of the company.
  • Composition of the corporate bodies – the members who will form the first board of directors must be indicated at the moment of incorporation.
  • Commercial licence – after dealing with the deed of incorporation and respective commercial registration, an application must be made requesting the issue of the commercial licence. Commercial representation/foreign branch of commercial companies may choose to be represented in Cabo Verde through branches, agencies, delegations or other forms of representation. Representations are authorised to carry out activity in Cabo Verde in accordance with the applicable time limit.

The ongoing report and disclosure obligations depend on the sector of activity of the company. Companies that operate in financial, banking, insurance and communications are subject to different levels of ongoing report and disclosure obligations. But for companies not subject to special legal regimes, the following reporting requirements are applied:

  • annual accounts, which are to be filed annually to the commercial registry and are publicly available;
  • statement of commencement of activity from the tax authorities;
  • statement of commencement of activity for social security; and
  • amendment to the articles of incorporation.

For a Sociedade Anónima, the management must be structured as follows: a board of directors with a minimum of three members or an executive board of directors.

Where the share capital does not exceed EUR90,691, the board of directors can be replaced by a single director.‬‬

For Sociedades por Quotas, the following applies: management is discharged by one or more managers, who must be individuals, designated by the shareholders.

In Sociedades Anónimas, directors can face civil and criminal liability.

Directors’ Civil Liability

Members of the board of directors can be held liable towards the company for damages caused by acts or omissions resulting from disrespect of their legal or contractual duties, unless the directors can prove that they did not act wilfully or maliciously.

As an expression of the business judgement rule, liability is waived if directors can prove that they acted in an informed manner, free of any personal interest and using the criterion of corporate rationality. A director who does not exercise the right of opposition conferred by law, when able to do so, will be jointly liable for the acts they could have objected to.

Directors are not liable towards the company if the act or omission is part of a resolution of the general meeting, even if that resolution is voidable. However, directors will not be released from liability on the favourable opinion or consent of the supervisory body.

Directors' Criminal Liability

Under Cabo Verdean law, only crimes expressly provided for in the law can be punishable. Companies and individuals can be held criminally liable.

Directors can be liable for any action wilfully performed on behalf of the company, whenever such action qualifies as a crime and even if the relevant type of crime requires (to qualify as such) certain elements that can only occur in the company or if an agent acts in its own interest and the director acted in the company’s interest.

Crimes set out in the Companies Code (CC) include:

  • lack of recovery of initial capital contributions;
  • illegal acquisition of company own shares;
  • illegal distribution of company assets;
  • irregular or misleading calling notices for shareholder general meetings;
  • disturbance to participation or exercise of rights in shareholder general meetings;
  • fraudulent participation in shareholder general meetings;
  • illegal refusal to provide information;
  • granting false information;
  • misleading call;
  • impairing the regular monitoring or auditing of company activity;
  • illegally refusing to prepare or sign the shareholder general meeting minutes;
  • breach of duty to propose a winding-up of the company or share capital reduction; and
  • abuse of information.

Misdemeanour Proceedings

Certain actions of the directors can qualify as misdemeanours and incur fines and accessory penalties applicable to the relevant agent (either a company or generally a director acting on behalf of the company).

The employment relationship is regulated by the Labour Code (Decreto-Legislativo No 5/2007 de 16 de Outubro). Further to the Labour Code, several other laws regulate important issues, such as work-related accidents and sickness.

Nevertheless, the parties may agree in employment agreements some special situation conditions for the employment relationship provided they do not violate the Labour Code. It is also possible to have collective bargaining agreements with more favourable conditions for employees.

Civil servants or public employment relationships are subject to special regulation.

As a rule, no written document is required and the employment relationship can be proved by any means.

Some types of contract must be in writing – that is, fixed term or part-time – and certain top management contracts. However, if the contract is not in writing, it does not render it invalid. It can, however, lead to the contract’s requalification into a full-time permanent one.

The minimum and maximum working times are regulated by the Labour Code. The normal working period may not exceed eight hours per day and 44 hours per week, and a minimum of 12 consecutive hours of rest must be respected.

The Labour Code provides that by a unilateral decision of the employer, a single schedule of seven hours of daily work may be established during the months July to September, starting between 6 o'clock and ending at 3 o'clock on the same day. During daylight saving time, the employee shall be allowed an interval of not less than 15 minutes. The employer may also choose to maintain normal working hours by extending rest time between morning and afternoon periods, but in such case the afternoon period may not exceed 19:30 each day.

As a rule, the daily working period shall be interrupted by an interval with a maximum duration of one hour so that the employee does not work more than five consecutive hours.

Overtime hours are also regulated by the Labour Code and are considered to be work outside the normal period of work to which the employee is bound and can only be done (i) in the case of increases in work that do not justify the recruitment of other employees or (ii) in the case of force majeure, or where there are serious reasons that make it necessary to prevent serious harm.

The employment contract is extinguished by:

  • mutual agreement of the parties;
  • expiry;
  • collective dismissal;
  • individual dismissal for just cause; or
  • termination by the employee.

Mutual Agreement of the Parties

It is always lawful for the employer and the employee to terminate the employment contract by mutual agreement, which must be executed in writing.

The parties are free to enter into an agreement with or without compensation and to fix the date of termination; ie, to establish that the termination will be immediately or in the future.

However, if the parties intend to give immediate effect to the termination agreement, the employer shall agree compensation with the employee, taking into consideration the type of employment contract, duration, remuneration and possibility of finding a new job.

The compensation to be agreed between the parties may be paid in cash or in goods, in a single instalment or several instalments.

The employee can always claim cancellation of the agreement or any of its clauses, by judicial proceedings, if he considers that there has been an error, a malicious act or coercion in its conclusion.

Expiry

The employment contract expires:

  • once the period has expired;
  • if there is a supervening, absolute and definitive impossibility of the employee performing the work for which he was hired or the employer receives it;
  • by the occurrence of any extinctive facts, not dependent on the will of the parties; or
  • on the retirement of the employee.

The expiration of the contract due to the expiry of the initial or renewal period gives the employee the right to compensation of the following amounts:

  • 21 days of basic remuneration, if the contract lasts one year;
  • 15 days of basic remuneration for each full year of the contract, in addition to the first year; and
  • 1.75 days of basic remuneration for each month of the contract term up to one year.

In undetermined-duration and in fixed-term contracts with a duration of more than five years, the employee is entitled to compensation in the amount of ten days of basic remuneration for each full year after the first five years and one day of compensation for each month of duration of the contract up to one year.

Collective Dismissal

The employer may terminate the employment contracts of two or more employees on the grounds of reduced business or permanent closure of the company, establishment or part of the company structure for economic, conjectural or technological reasons.

The employer intending to make a collective dismissal shall communicate its intention in writing to the unions representing the employees. If the employees are non-unionised, the company shall directly notify the employees.

The communication shall include the following information:

  • the grounds for collective dismissal;
  • the expected date for the termination of the contracts;
  • the criterion for selection of employees; and
  • the number and professional category of the employees covered by the collective dismissal.

The employees covered by the collective dismissal are entitled to compensation. The amount of the compensation depends on the date of hiring the employee.

Individual Dismissal for Just Cause

The employer can, under certain circumstances, terminate the contract with just cause. The concept of just cause includes disciplinary dismissal and other forms of dismissal, provided that they are justified according to the law.

For dismissal based on unlawful conduct of the employee, the concept of just cause is the centrepiece of the matter and consists of the impossibility in practice of continuing the employment relationship due to the seriousness of the employee’s misconduct. When dismissed with disciplinary cause, the employee is not entitled to any compensation.

If the dismissal is not justified according to the law or if the employer does not comply with the proper proceeding, the termination of the contract can be considered null and void. The contract remains in force, which can lead to reinstatement or compensation.

Termination by the Employee

The employee may terminate the employment contract at any time without any reason or explanation, but the employee is obliged to give prior notice to the employer, which varies between 15 days and two months depending on the duration of the contract.

The right to form an employee representative body in any company, regardless of its size, is guaranteed by the Cabo Verdean Constitution. The initiative depends completely on the employees, which means that employers are under no obligation to implement this form of representation.

Employees are subject to personal income tax (PIT) under two tax methods: (i) declarative (self-assessment method) and (ii) final withholding method.

Employees are taxed according to category A (employment income), based on their residence or non-residence status. For PIT purposes, an employee is deemed resident in Cabo Verde provided they meet one of the following conditions: (i) a person who spends more than 183 days in aggregate in Cabo Verde during a calendar year and (ii) a person is also deemed to be resident in Cabo Verde if he or she stays fewer than 183 days therein and maintains a residence said to be the habitual residence in Cabo Verde with reference to December 31st of a given year.

Employment income is specifically defined in the PIT Code and covers all payments in connection with work (employment contract), such as salary, bonuses, commissions, pensions, allowances (eg, cost-of-living and housing allowances) and benefits in kind (eg, company cars), regardless of where the payment originates.

The following types of income are exempt from PIT:

  • per diems for national and international trips, for the portion that does not exceed the limits set for the public services;
  • lunch allowance, up to CVE250 per day;
  • use of personal car, up to CVE120,000 per year;
  • cash shortage allowance, up to 15% of the monthly salary;
  • family allowance, up to CVE500 per month, for each dependant or equivalent and ancestors; and
  • redundancy payments are taxable on the portion that exceeds one and a half times the average remuneration paid during the last months of employment, multiplied by the number of years of employment.

Employment and pension income are generally subject to monthly withholding tax (WHT). As a rule, the monthly WHT is levied as final taxation, unless the taxpayer opts to file the tax return, in which case the tax withheld has the nature of an advance payment on account of the final annual income tax liability. The monthly tax withholdings due are calculated by applying the following progressive WHT rates and the corresponding deduction to the taxable income:

  • Bracket 1: taxable income over CVE0 but not over CVE80,000, 15% WHT, CVE5,500 deduction.
  • Bracket 2: taxable income over CVE80,000 but not over CVE150,000, 21% WHT, CVE10,300 deduction.
  • Bracket 3: taxable income over CVE150,000, 21% WHT, CVE16,300 deduction.

Under the declarative method, employees are taxed according to their annual income statement. This method is applicable to dependent employees (Category A) who opt to file the tax return, on the income obtained abroad by resident taxpayers and on the income obtained in Cabo Verde by non-resident taxpayers that could not be taxed at flat rates. The total income will be subject to taxation at rates ranging between 16.5% and 27.5%.

Employees and managers or directors of the company are liable to social security contributions of 8.5% on their gross remuneration. Employers are liable to social security contributions of 16% on the same gross remuneration received by employees and managers or directors of the company.

Cabo Verde's corporate income tax (CIT), called Imposto sobre o Rendimento das Pessoas Colectivas, is levied on profits obtained within the Cabo Verdean territory and those obtained outside by resident companies (worldwide principle). Non-resident companies with a permanent establishment (PE) in Cabo Verde are also subject to CIT on Cabo Verdean-source income attributable to the PE.

Taxable profit is computed according to the local accounting rules and adjusted for tax purposes. For the purposes of determining taxable income, CIT payers can be taxed under two methods/regimes as follows.

  • Special regime for micro and small-sized companies:
      1. micro-sized company – an entity that employs up to five persons, with an annual turnover (gross amount of sales and services) that does not exceed CVE5 million;
      2. small-sized company – an entity that employs between six and ten persons, with an annual turnover (gross amount of sales and services) of between CVE5 million and CVE10 million; and
      3. micro and small importers – importers whose customs value of imported goods does not exceed the value of turnover on an annual basis for the purpose of qualifying under the simplified scheme for micro and small-sized companies.
  • Standard organised accounting regime (standard/normal regime under which the computation of profits follows the local accounting rules).

Resident companies are subject to a tax rate of 22%, where taxable income corresponds to the profit less any tax benefits and any losses carried forward, as stated in the tax return. The tax rate of 22% is also applicable for PEs of non-resident companies.

Micro and small-sized companies are subject to a single special tax (SST) of 4% levied on the gross amount of sales obtained in each taxable year, to be paid quarterly. The SST replaces the CIT, fire brigade surtax and value-added tax (VAT), as well as the contribution to social security attributable to the company.

Non-resident companies without a PE are subject to WHT rates applicable for each income category stipulated in the Tax Code, which range between 1% and 20%.

The CIT rate is increased by a fire brigade surcharge, called Taxa de Incêndio, of 2% on the tax due, leading to a final tax rate of 22.44%. This surcharge is levied in the municipalities of Praia (Island of Santiago) and Mindelo (Island of São Vicente).

Foreign Investor Status (Estatuto do Investidor Externo)

Foreign Investor Status, which has granted some tax benefits at the level of the investor (eg, exemption from WHT on distribution of profits and on interest related to the financing of the investment), was revoked by the New Investment Law effective as from 1 January 2013. The tax benefits already granted or for which recognition has been requested prior to the entry into force of the Tax Benefits Code (TBC) and the Investment Code are maintained. Investment projects submitted for analysis and approval to the competent authorities prior to the entry into force of the TBC continue to be regulated under the legislation in force at the date of the respective submission.

Contractual Tax Benefits

There are exceptional incentives – regarding customs duties, CIT, PIT, property tax and stamp duty – to investments that fulfil all the following conditions:

  • an investment value over CVE550 million (or CVE275 million if carried out outside the municipalities of Praia, Sal and Boavista);
  • relevant investment for the promotion and acceleration of economic development, under the government's programme; and
  • the creation of at least ten jobs.

The concession of contractual tax benefits is subject to approval by the Council of Ministers upon agreement.

Industrial activity

The following tax and customs benefits are provided for industrial activity.

CIT benefits

A CIT credit is available for up to 50% of the eligible investments made in an industrial activity. Any unused tax credit may be carried forward for ten years, subject to certain limitations.

Eligible investments include the acquisition of new fixed assets, patents and licences regarding technologies.

IUP benefits

Industrial activities may benefit from an exemption from IUP on the acquisition of immovable property used exclusively for industrial purposes; however, the recognition of such tax exemption should be approved by the municipality.

Customs duty benefits

Industrial activities benefit from an exemption from customs duties on the import of construction material, machines, utensils, semi and finished materials, products and raw materials used in the production of goods.

Stamp duty benefits

Financing transactions of industrial projects are exempt from stamp duty.

International Business Centre (IBC) of Cabo Verde

The Cabo Verdean Agency for Foreign Investment is the entity responsible for granting the licences to operate within the IBC, upon previous proposal of the Zona Franca Comercial SA.

The following tax benefits are applicable to entities licensed to operate in the IBC on income from industrial or business activities and services in respect of operations carried out with other IBC-licensed entities or with non-resident entities (without a PE in Cabo Verde).

Note that these tax benefits are not applicable to entities engaged in tourism, banking and insurance, real estate, or construction.

CIT benefits

Reduced CIT rates of 5%, 3.5%, or 2.5% are applicable to entities that create respectively 10, 20, or 50 jobs.

The CIT rate is 2.5% in the case of the creation of four jobs for entities licensed to operate within the International Service Centre.

Entities licensed to operate within the IBC benefit from reduced CIT rates until 2030.

Shareholders' benefits

Shareholders of the entities licensed to operate within the IBC are exempt from taxation on dividends and interest received.

VAT and customs duty benefits

All the exemptions foreseen in the VAT regulation and customs law apply.

An exemption from customs duties applies with respect to certain goods, equipment and materials used within the scope of the activity developed and licensed under the IBC.

Maritime Transport (Tonnage Tax)

Cabo Verdean tax legislation provides for a special regime for the assessment of the taxable profit applicable to maritime transport activities (tonnage tax).

Entities licensed in the IBC that carry out activities related to the international maritime transport of persons or goods may opt for a special regime for the assessment of the taxable profit.

Tax and Financial Incentives for Internationalisation of Cabo Verdean Companies

A regime that provides for tax and financial incentives for investment projects in order to promote the internationalisation of Cabo Verdean companies is in force.

The following incentives, to be granted under a contract of not more than three years, apply to internationalisation projects of companies with a head office and place of effective management in Cabo Verde that are undertaken before 31 December 2020.

CIT benefits

Investments that are eligible for the regime of tax benefits for internationalisation may benefit from (i) a reduced CIT rate of up to 50%, applicable until the term of the investment contract; and (ii) exemption from CIT on income obtained by qualified expatriate employees.

Additionally, a deduction for creation of employment ranging between CVE26,000 and CVE35,000 for each new job created may apply.

IUP benefits

An exemption from IUP may be available on the acquisition of immovable property for the establishment or expansion of the activity of the investor.

VAT and customs duty benefits

Exemptions provided for in the VAT Code apply, as well as customs duty incentives as provided for in the general applicable legislation.

Stamp duty and other benefits

An exemption from stamp duty is available on the incorporation of companies, on an increase of share capital of existing companies and on financing transactions.

An exemption from notary and registration fees is available on the incorporation and registration of companies.

Touristic Utility Status (Estatuto de Utilidade Turística)

Cabo Verde may grant Touristic Utility Status to certain touristic projects, as follows:

  • installation – granted to new touristic projects;
  • functioning – granted to touristic projects starting to operate; and
  • refurbishment – granted to touristic projects in the case of refurbishment projects with a value of at least 25% of the initial investment.

Touristic Utility Status generally allows for the following tax incentives and benefits:

  • CIT credit of up to 50% of the eligible investments made in tourism, touristic promotion activities and real estate tourism project investment;
  • exemption from IUP on the acquisition of real estate used for construction and installation of touristic projects if granted by the municipality;
  • exemption from customs duties on the importation of materials and equipment used in touristic projects; and
  • exemptions from stamp duty on the financing of tourism investments.

Tax Incentives for Renewable Energies

There is a regime for promotion, encouragement, and access, licensing and exploitation inherent to the exercise of independent production and self-production of electricity based on renewable energy sources.

Water; wind; solar; biomass; biogas or industrial, agricultural or urban waste; oceans and tides; and geothermal are to be considered sources of renewable energy. Under the regime, renewable energy producers may benefit from the following.

CIT benefits

A CIT credit is available for up to 50% of the eligible investments made in renewable energy projects.

Customs duty benefits

An exemption from customs duties and other customs charges applies on the importation of capital goods, raw materials and supplies, finished and semi-finished products, and other materials that are incorporated or used in the production of goods or services involved in the production of electrical energy from renewable sources.

IUP and stamp duty

Exemptions from IUP and stamp duty are granted on the acquisition of immovable property and other assets related to the investment project or its financing.

Shipping Transport Industry Incentive

CIT benefits

A CIT credit is available for up to 50% of the eligible investments made in shipping, air and sea transportation projects.

Customs duty benefits

An exemption from customs duties applies on the importation of shipping material for the maintenance, production and repair of shipping and respective equipment.

IUP and stamp duty

Exemptions from IUP and stamp duty are granted on the acquisition of immovable property and other assets related to the investment project or its financing.

Job Creation Incentives

Entities taxed under the verification method are entitled to deduct the following amounts for each created permanent job:

  • CVE26,000 for each job created in the municipalities of Boa Vista, Praia and Sal;
  • CVE30,000 for each job created in the remaining municipalities; and
  • CVE35,000 in the case of a disabled person.

Media, Telecommunications and Internet

The importation of goods, materials, equipment, vehicles and other equipment exclusively for the purpose of telecommunications and media is exempt from customs duties.

Incentives on the Import of Vehicles

The following exemptions from customs duties, excise duty and VAT are granted:

  • on the import of heavy passenger vehicles for collective transport of passengers comprising more than 30 seats including the driver, when imported by duly licensed companies operating in the respective sector;
  • on the import of new passenger vehicles, intended for executive transport, carried out by the holders of the respective licence and duly authorised by the General Direction of Road Transport;
  • on the import of heavy passenger vehicles for collective transport of passengers comprising more than 15 seats including the driver, when imported by a public transporter with the respective permit that is in the process of replacing licensed vehicles, as provided for in the General Legal Regime of Transport in Motor Vehicles (Regime Jurídico Geral de Transportes em Veículos Motorizados); and
  • on the import of heavy passenger vehicles intended for school transport, duly equipped, comprising more than 23 seats including the driver, when imported by an educational entity duly authorised by the competent ministry, local authorities and public transporter, provided that those vehicles are duly licensed and authorised by the competent authorities.

The above incentives shall not apply to vehicles that are more than six years old and on the import of heavy passenger vehicles for collective transport of passengers, duly equipped, not more than six years old, comprising more than 30 seats including the driver, intended for exclusive transport of tourists and baggage, when imported by companies holding a licence and a tourist transport permit.

Incentives for Young Start-ups

The following incentives are granted, applicable to entities that carry out directly and as a main activity an economic activity eligible under the Young Start-up Programme, approved by Resolution No 34/2017 of 25 April:

  • a CIT rate of 5%, applicable in the first five years of activity, starting 1 January 2019, except in the case of ICT and R&D activities, whose rate is 2.5%, regardless of the location of the head office or place of effective management;
  • an exemption from customs duties, excise duty and VAT on the import of one vehicle for the transport of goods, comprising up to three seats in the cabin, including the driver, with a maximum age of five years, intended exclusively for the respective activity;
  • an exemption from import duties on the import of raw and subsidiary materials, materials, and finished and semi-finished products intended for incorporation into products manufactured within the scope of industrial projects; the incentive shall apply provided that the entities are certified and registered at the Industrial Registry, during the installation, expansion or remodelling phase;
  • financial incentives, support for capacity-building and other institutional support provided for in the legislation for micro and small companies;
  • an exemption from stamp duty on financing agreements for the development of the respective activities; and
  • a reduction of 50% of the fees due on notarial acts and registrations due on the purchase and sale of real estate for the respective installation.

Interest Rate Support for Microproduction of Renewable Energies

An interest rate support of 50% is granted on the interest on loans borrowed from financial institutions by families and by duly incorporated micro and small companies for the acquisition of equipment and installation services, aimed at the micro production of renewable energy, in accordance with the applicable legislation.

This support shall apply to final consumers covered by the normal low voltage category.

Exemption from Payment of Fees Due for Fishing Licences of Small-scale Fishing Boats up to Five Tonnes

An exemption from payment of fees in obtaining fishing licences is granted for boats up to five tonnes, registered in the National Vessel Registration System and whose holder has more than one boat.

Tax Benefits to the Financial Sector

The Tax Benefit Code has several measures in the financial sector, as follows.

Financial investments

Income derived from certificates of deposit and long-term bank deposits benefit from a CIT exemption of up to 75% (depending on the maturity date of the deposits).

Securities market (bonds)

Income derived from bonds or similar products (except public debt securities) listed in the securities market obtained until 31 December 2025 benefit from a 5% CIT flat rate.

Additionally, dividends from shares listed in the stock exchange, placed at the disposal of its holders until 31 December 2025, are exempt from CIT.

Investment funds (securities and real estate funds)

Income derived from securities funds, when established and operating under the Cabo Verdean legislation, is taxed as follows:

  • income obtained in the Cabo Verdean territory is exempt from CIT (except capital gains);
  • foreign income is subject to a 10% CIT flat rate (except capital gains);
  • capital gains are subject to a 10% CIT rate; and
  • income derived from real estate funds, established under the Cabo Verdean legislation, is taxed as follows: (i) real estate income benefits from a 10% CIT rate (after deduction of the respective expenses) and (ii) capital gains benefit from a 15% CIT rate over 50% of the income, resulting in an effective rate of 7.5%.

Income received by unit holders in securities funds and real estate investment funds, established under Cabo Verdean legislation, is exempt from CIT.

Venture capital funds

Income derived from venture capital funds, established under Cabo Verdean legislation, as well as income received by the unit holders in venture capital funds, is exempt from CIT.

Credit institutions with restricted authorisation

The following tax benefits are applicable to credit institutions with restricted authorisation, stipulated by Law No 61/VIII/2014 of 23 April: (i) a CIT rate of 10%, applicable up to 31 December 2021, levied on profits derived from activities carried out with non-resident entities (profits realised from 1 January 2022 onwards shall be taxed at the standard rate in force); and (ii) an exemption from customs duties on the import of materials and supplies intended exclusively for the installation of those institutions.

Restricted authorisation banks already established and authorised to operate in the Cabo Verdean financial system can request the Central Bank (Banco de Cabo Verde) to transform into generic authorisation banks up to 30 June 2019 and proceed to carry out financial transactions with residents.

Loans from non-resident financial institutions

Interest from loans granted by non-resident financial institutions to resident credit institutions is exempt from CIT, provided that such interest is not attributable to the PE of those institutions located in Cabo Verdean territory.

Long-term financial investments

Income from certificates of deposit and long-term deposits for a period exceeding five years is taxed at 50% of the value for terms between five and eight years (previously between five and ten years), and 25% of their value for terms of maturity over eight years (previously ten years); these benefits are extended to income from insurance products from insurance companies established in Cabo Verde, provided that it has been contractually fixed that (i) the capital invested is blocked for a minimum period of five years and (ii) the remuneration is due at the end of the contractual period.

Capital gains on sale of shares

Capital gains and capital losses on the sale of share capital or other securities, obtained by residents and non-residents with a PE in Cabo Verde, are exempt from tax if the shares have been held for a consecutive period of at least twelve months. This benefit does not apply to capital gains on the sale of share capital acquired from entities that are subject to a more favourable tax regime.

Securities market

An exemption from income tax is granted for securities issued up to 2020 and negotiated in the secondary market.

Conventional remuneration of share capital

Commercial companies or civil law companies incorporated as commercial companies, co-operatives, public enterprises and other corporate entities of public or private legal persons, with headquarters or place of effective management in Cabo Verdean territory, may deduct from their taxable profit an amount corresponding to conventional remuneration of share capital. The amount to be deducted corresponds to 10% of the amount of entries made in cash or through the conversion loans from shareholders, within the scope of the incorporation of a company or an increase of the capital, up to CVE100 million in each fiscal year, provided that certain conditions are met.

Tax Benefits with a Social Nature and Customs Duties Benefits

Incentives for employers hiring young people

Individuals and legal persons under the organised accounting regime that hire workers not older than 35 years for a first job are exempt from contributions due by the employer to social security.

This benefit shall only apply to contracts with a duration of one year or more, which relate to workers registered in the social security system and provided that no reduction or elimination of jobs has occurred, and assuming that the employer has paid the contributions due by the employee to social security.

Training, internships and grants

Companies taxed under the verification method may deduct 150% of the following costs:

  • costs related to the training of employees;
  • costs associated with the hiring of young people for internship positions; and
  • costs associated with scholarships granted to students.

Direct incentive to professional internships

Individuals and legal persons under the organised accounting regime may deduct from tax due CVE20,000 for each trainee hired with a contract duration of at least six months.

Donations

Companies may deduct 130% of the amounts donated to the following entities and activities, up to 1% of the turnover, under certain conditions:

  • entities that develop, among others, social, cultural, sports, educational, environmental, scientific, technological work and health services;
  • state, municipalities and any other public services;
  • municipal associations; and
  • foundations.

Customs duties benefits

Under certain conditions, the following business sectors, among others, may benefit from customs duties exemption on the importation of products, materials and equipment related to the activity/project:

  • agriculture, livestock and fishing activity;
  • civil aeronautics;
  • diplomatic and consular missions;
  • aid to economic development;
  • retired foreign citizens;
  • sports and musicals; and
  • fire corporations.

Tax Benefits to Other Sectors of Investment

Eligible investments made in activities such as IT and scientific research may benefit from (i) CIT credit of up to 50% and (ii) exemptions from IUP, stamp duty and customs duties on the acquisition of immovable property and other assets related to the investment project or its financing.

Tax Benefits Regarding the Recovery of Business and Insolvency Code

There are CIT, PIT, stamp duty and property tax benefits for companies under recovery of business and insolvency procedures.

Foreign Tax Credit

Cabo Verdean tax law allows a foreign tax credit to mitigate double taxation of foreign income. The tax credit is equal to the lesser of (i) the income tax paid abroad or (ii) the CIT fraction calculated before the deduction is given, corresponding to incomes that may be taxed in the country concerned, net from any cost or losses, directly or indirectly incurred, for the purposes of its realisation. Foreign tax credit cannot exceed the tax foreseen in the tax treaty, if applicable.

There is no special tax consolidation regime for companies in Cabo Verde.

There is a transfer pricing regime that establishes that commercial transactions between associated enterprises should be subject to identical terms and conditions to those that would be accepted and agreed between independent entities (arm’s length principle).

Taxpayers must keep information and documentation regarding their transfer pricing policies on hand. The following taxpayers must prepare a transfer pricing documentation file:

  • entities classified as ‘Large Taxpayers’;
  • entities considered taxed under a privileged tax regime, as defined in the General Tax Code;
  • PEs of non-resident entities; and
  • other entities designated as such by the tax authorities.

Cabo Verde has anti-evasion rules.

In general terms, by law, there is no competent entity in Cabo Verde that regulates or controls mergers between companies or entities. Nevertheless, depending on the sector, an entity can regulate some of the operations; namely, in the finance and insurance sectors, which are regulated by the Central Bank of Cabo Verde.

There is no general and autonomous law in Cabo Verde, or any competition or antitrust act or statute, regulating matters of competition. Nevertheless, depending on the sector, an entity can regulate some of the operations; namely, in the finance and insurance sectors, which are regulated by the Central Bank of Cabo Verde.

There is no general and autonomous law in Cabo Verde, or any competition or antitrust act or statute, regulating matters of competition. Nevertheless, depending on the sector, an entity can regulate some of the operations; namely, in the finance and insurance sectors, which are regulated by the Central Bank of Cabo Verde.

There is no general and autonomous law in Cabo Verde, or any competition or antitrust act or statute, regulating matters of competition. Nevertheless, depending on the sector, an entity can regulate some of the operations; namely, in the finance and insurance sectors, which are regulated by the Central Bank of Cabo Verde.

A patent is an exclusive right that can be granted to any type of invention in any field of technology, whether it is a product or a process, as well as for new processes for obtaining products, substances or compounds that already exist.

There are three patentability requirements in the Industrial Property Code (IPC); that is, novelty, inventive step and industrial application.

The patent shall confer the exclusive right to use the invention anywhere in the national territory. The patent shall also confer on its owner the right to prevent third parties from manufacturing, offering, stocking, trading or using the product that is the subject of the patent without his consent and from importing or holding it for any of these purposes.

The registration of a patent is filed with the Institute of Quality Management and Intellectual Property (IGQPI).

Generally, patent rights will be enforced and invalidated before the First Instance Courts. Whoever illegally violates the industrial property rights of another person, with criminal intent or by mere blame, must pay compensation to the injured party for the damages resulting from the violation. For this purpose, the IP right-holder must prove the causality of the infringement for the damages calculation. The injured parties can also resort to criminal courts for criminal cases.

The length of protection is 20 years.

Trade marks are signs used in trade to identify products and services, and can consist of a sign or set of signs capable of being represented graphically; that is, words, including names of people, designs, letters, numbers, sounds, shape of the product or its packaging. A trade mark may also consist of advertising slogans for goods or services to which they refer, irrespective of copyright protection afforded to them, provided they are of distinctive character.

The registration of the trade mark grants to the right-holder the ownership and the exclusive use of the trade mark for the products and the services that it designates.

The registration of a trade mark is filed with the IGQPI.

Generally, trade mark rights will be enforced and invalidated before the First Instance Courts. Whoever illegally violates the industrial property rights of another person, with criminal intent or by mere blame, must pay compensation to the injured party for the damages resulting from the violation. For this purpose, the IP right-holder must prove the causality of the infringement for the damages calculation. The injured parties can also resort to criminal courts for criminal cases.

The length of protection is ten years from the date of the respective concession and can be indefinitely renewed by equal periods.

A design shall mean the ornament or aesthetic aspect of an article, including the appearance of the whole, or part, of a product resulting from the features of, in particular, the lines, contours, colours, shape, texture or materials of the product itself and its ornamentation. Designs that are contrary to public order, public health or morality may not be registered.

The registration of an industrial design is filed with the IGQPI. The scope of the protection conferred by the registration shall cover all designs that do not give a different overall impression to an informed user. Registration of a design shall confer on its holder the exclusive right to use it and prohibit its use by third parties without his consent, if such acts are carried out for commercial purposes.

Generally, industrial design rights will be enforced and invalidated before the First Instance Courts. Whoever illegally violates the industrial property rights of another person, with criminal intent or by mere blame, must pay compensation to the injured party for the damages resulting from the violation. For this purpose the IP right-holder must prove the causality of the infringement for the damages calculation. The injured parties can also resort to criminal courts for criminal cases.

The length of protection is five years as of the date of application and it may be renewed for equal and successive periods up to a limit of 25 years.

Copyright is defined as the exclusive right of authors of literary, artistic and scientific works to enjoy, use and exploit such works or to authorise their enjoyment, use or exploitation by third parties, either in whole or in part.

Copyright shall comprise economic rights and personal rights, the latter being known as moral rights.

As a rule, copyright is recognised regardless of registration of the work, its deposit or any other formality.

Copyrighted works are enforced before the First Instance Courts. If the right-holder has his right infringed, he can request compensation. Whoever illegally violates the copyright of another person, with criminal intent or by mere blame, must pay compensation to the injured party for the damages resulting from the violation. For this purpose the Copyright holder must prove the causality of the infringement for the damages calculation. The injured parties can also resort to criminal courts for criminal cases.

Non-patrimonial damages may also be compensated if caused by the infringer’s acts.

Generally, the length of protection is for the lifetime of the author plus 50 years following his death, even if it is a posthumous work. The length of protection for copyright in works of photography or applied arts is 25 years after such works are produced.

Software, databases and trade secrets are protected under the regime of industrial and intellectual rights.

Currently, in Cabo Verde, the personal data protection legislation in force is the Constitution of the Republic of Cabo Verde and Law 133/V/2001 of January 22nd.

The Constitution establishes that all citizens shall be guaranteed the right to personal identity, the development of personality and civil capacity, which may only be limited by a judicial decision and in the cases and terms established in the law, and that all citizens shall have the right of access to computerised data that affects them and for the same to be rectified and updated, as well as the right to be informed about the purposes of the data, in the terms of the law.

The Constitution also grants the right of habeas data to ensure knowledge of the information contained in files, computer archives and registers that affect subjects, as well as to be informed about the purposes of the data and for the same to be rectified or updated.

The Law 133/V/2001 of January 22nd establishes the general legal framework for the protection of individuals with regard to the processing of personal data and it applies to the processing of personal data wholly or partly by automated means as well as to the processing of personal data other than by automated means contained in manual files or part of manual files. The law shall also apply to the processing of personal data carried out (i) in the context of the activities of an establishment of the controller situated within the national territory; (ii) outside the national territory in places where the Cabo Verdean law applies by virtue of international public law; and (iii) by a controller who is not established on the national territory, who, for purposes of processing personal data, makes use of automated or other types of equipment situated on the national territory, except where such equipment is used only for purposes of transit.

Law 133/V/2001 of January 22nd applies in an international context where there are any international treaties in place.

The competent authority is the Comissão Nacional de Protecção de Dados (the National Commission of Data Protection, or CNPD), which is an independent administrative entity that exercises its authority throughout the national territory.

Generally, the CNPD is the national authority endowed with the power to supervise and monitor compliance with the laws and regulations in the area of personal data protection, with strict respect for human rights and the fundamental freedoms and guarantees enshrined in the Constitution and the law. The CNPD has the following powers:

  • investigative powers, and it may have access to data undergoing processing and the power to collect all the information necessary for the performance of its supervisory duties;
  • powers of authority, particularly those of ordering the blocking, erasure or destruction of data, or imposing a temporary or permanent ban on the processing of personal data, even if included in open data processing networks from servers situated on Cabo Verdean territory; and
  • the power to give opinions before processing is carried out and to ensure their publication.

The CNPD must be consulted on whatever legal provisions relate to personal data processing and to issue opinions on legal provisions or legislative initiatives related to personal data processing.

Raposo Bernardo

Av. Fontes Pereira de Melo
Ed. Aviz, nº 35, 18º
1050-118 Lisboa
Portugal

+351 21 3121 330

N/A

jacorreia@raposobernardo.com www.raposobernardo.com
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Trends and Developments


General overview

The archipelago of Cabo Verde is composed of ten islands, located 500 kilometres off the west coast of Africa and with an estimated population of 520,500.

Cabo Verde is an FAA Category 1 country, and a member of flag international organisations, including the United Nations, International Monetary Fund, World Bank and World Trade Organization.

Cabo Verde's economy is driven by tourism, grounded in year-round attractive weather, beautiful beaches, stable democracy, limited security risks and proximity to Europe. In fact, the Cabo Verde islands have been attracting tourists in ever-increasing numbers during the past decade, offering a combination of the true Africa and high-class western-style hotels and resorts. Cabo Verde thus represents a secure investment in Africa, by offering an ideal central position between Europe and Africa, and by standing out as a model point of reference in terms of a most stable political climate. Cabo Verde is a model African democracy with a tradition of peaceful political transition during its 40 years of independence.

The country is a particularly good example in Africa, with a peaceful democratic transition, and a functional and peaceful multi-party system.

Also, Cabo Verde offers a European legal environment, aiming for unique legislative modernisation in Africa, as the banking and financial markets law, the general insurance and maritime law, or the implementation of DTT can demonstrate. This kind of innovation and legal protection turns out to be fundamental to the evolution that the country has undergone and for the attractiveness of long-term productive foreign investment.

Another key factor for investment purposes is that Cabo Verde’s monetary policy is closely aligned with that of Europe, with the local currency pegged to the Euro. 

Droughts, soil erosion, poor agricultural conditions and a lack of drinking water has forced many inhabitants to earn their living abroad. Even today, more than 80% of the country's food has to be imported. But thanks to the efforts of the hotel and aviation industries, Cabo Verde’s economy has been turned around in the last few years. The islands have invested in sustainable tourism projects and this has revitalised the previously fragile economy. Tourism, the main driver for economic growth, has successfully tapped into natural resources such as biodiversity, landscape and the environment.

Growth is expected to be driven by remittance inflows, manufacturing, continued growth in tourism, and increased public infrastructure spending. Private investment supported by favourable domestic credit conditions will also contribute to economic growth.

Economic overview

During the period of 2009-2015, economic growth decelerated significantly, a result of the protracted impact of the global financial crisis. Counter-cyclical fiscal measures did not restore growth and instead led to a sharp increase in the stock of debt.

Gross domestic product (GDP) growth recovery started in 2016 and is estimated to have reached 5.5% in 2019, driven primarily by exports and investments. Robust growth in the industrial sector and commerce supported the pick-up in economic activities. Agriculture, which employs 15% of the population, continues to be adversely affected by the impact of the year-long drought in 2017. The fiscal balance is estimated to have improved by 0.1 percentage point to 3% in 2018, owing to a pick-up in revenues. Total revenues reached 28.7% of GDP in 2018. Both tax and non-tax revenues expanded to counter a sharp fall in grants. Total expenditures remained flat at 31.6% of GDP as capital spending was reduced to accommodate higher spending on wages and goods and services.

The stock of public debt rose from 126% to 129.1% of GDP in 2018, reflecting increased support to select state-owned entities. Recently, the Government of Cabo Verde received, from the International Development Association – IDA/World Bank, a credit to fund the state-owned enterprises-related fiscal management project for the privatisation of several state-owned entities such as ENAPOR - Empresa Nacional de Administração dos Portos, SA, Electra, S.A., EMPROFAC - Empresa Nacional de Produtos Farmacêuticos, SA and INPHARMA - Indústria Farmacêutica SA. Those privatisation processes will help to support medium-term debt sustainability and economic growth.

Investing in Cabo Verde – recent examples

In this context, the recent privatisation of the national airline (TACV) is a positive development - Loftleidir Cabo Verde is now a majority shareholder with a 51% stake in the Company. Loftleidir Icelandic, which is a subsidiary of Icelandair Group, holds a 70% stake in Loftleidir Cabo Verde, and other investors hold 30%. Loftleidir Icelandic has been working on a consultancy basis with Cabo Verde Airlines since 2017 on restructuring the Company and developing its strategy for the future. Cabo Verde Airlines will benefit from the experience and knowledge within Icelandair Group, which has a similar business model, connecting Europe and North America over the North-Atlantic with Iceland as a strong hub. Cabo Verde Airlines already has operating licences to fly scheduled flights to Europe and the United States. The conclusion of this privatisation process will contribute to the reinforcement of the dynamics of business in Cabo Verde.

This economic environment explains the reasons why Icelandair Group has opted to invest in Cabo Verde. Some legal solutions, particularly at the tax level, have also contributed significantly to increased investment interest in Cabo Verde.

Cabo Verde’s economy is prosperous, thanks to travel and tourism. The Islands have grown while developing their status as a tourist hotspot, and this has had a significant impact on the Cabo Verdean economy. The travel and tourism industry directly contributed 17.8% of Cabo Verde’s gross domestic profit (GDP). That equates to around USD311 million. This ‘direct contribution’ came from hotels, travel agents, airlines, restaurants and those in the leisure industry. The contribution of travel and tourism to Cabo Verde’s economy is even greater when the wider impacts of the industry are taken into account. These include indirect contributions to jobs and GDP through the construction of new hotels, the purchase of new aircraft, tourism marketing, resort area security services, IT services for travel agents, catering services for airlines, and so on.

The opening of new hotels and resorts, such as the luxury 5-star resorts, as well as other developments in the aviation, food and beverages and leisure sectors, has prompted a significant rise in employment in Cabo Verde.

However, tourists are now also spending more money when travelling in Cabo Verde, which means that investment is also increasing.

Challenges and partnerships

The country aims to consolidate its achievements as a middle-income country and to strengthen further the conditions for poverty reduction and boosting shared prosperity. It requires efforts to boost human capital, reduce public debt, improve the effectiveness of the public sector, strengthen connectivity, and build resilience to natural disasters. The government aims to expand and modernise infrastructure, improve the business environment by cutting red tape and implementing other business-friendly reforms, streamline administrative procedures, increase labour market flexibility, and strengthen the performance of state-owned enterprises.

Private property is reasonably well protected, and the government is implementing reforms to increase the reliability and protection of land information. The judiciary’s constitutional independence is generally respected. Levels of transparency are relatively high and levels of corruption are relatively low in Cabo Verde compared to those in other African nations.

The overall business environment has become more efficient. The incorporation process for launching a business is more streamlined, and licensing requirements are less burdensome. The market determines most prices. Tax and legal regimes are more European-standardised.

Cape Verde is open to the world and has an excellent relationship with Europe. Cabo Verde and the EU have enjoyed a close and very constructive relationship for more than 35 years, based first of all on significant and continuing development co-operation. The EU/Cabo Verde Special Partnership was created in 2007 with the aim of giving expression to and developing further the particularly close and successful evolution of the relationship in various areas, ranging from many different aspects of development co-operation to a regular political dialogue at the highest level, with the overarching aim of promoting common interests and values. As priority areas of action, the following six pillars were created: i) good governance; ii) security/stability; iii) regional integration; iv) technical and regulatory convergence; v) knowledge-based society; vi) the fight against poverty, and development.

The Mobility Partnership, for which Cabo Verde was selected as a pilot state, is a political framework for increased dialogue and co-operation between the EU and Cabo Verde in the area of migration. This partnership includes concrete initiatives from both parties, including two agreements in force on facilitating issuing of visas and readmission of persons. In the Schengen area, Portugal manages the Common Visa Centre (CCV, one of various projects funded under the PpM (People's Monarchist Party)) dealing with short-term visa requests on behalf of 15 EU Member States.

Cabo Verde also has an excellent relationship with the United States of America. Cabo Verde is one of Africa’s success stories and an important US partner in West Africa. Cabo Verde’s current administration has prioritised relations with the United States and Europe. Its strategic location means that Cabo Verde is increasingly at the crossroads of the transatlantic narcotics trade. The country has partnered with US law enforcement officials to fight drug-trafficking. The US also conducts training and exercises and shares information to build Cabo Verde’s capacity to interdict suspected illicit maritime vessels, gather military intelligence information, track private ships travelling through its waters, and carry out search-and-rescue operations. In September 2017, the US and Cabo Verde signed a Status of Forces Agreement; the agreement is still pending ratification from Cabo Verde. Top US priorities in Cabo Verde are maritime security, increasing bilateral trade, and economic development.

Cabo Verde has become a global leader in solar and wind energy and has sought expanded ties with American companies to develop these renewable resources. Cabo Verde and the United States have signed an Open Skies agreement to facilitate air travel safety and expansion, which has led to the establishment of direct flights to and from New England.

Raposo Bernardo

Av. Fontes Pereira de Melo, 35,
18º Lisboa
Portugal

+351 21 312 13 30

+351 21 356 2908

jacorreia@raposobernardo.com www.raposobernardo.com
Author Business Card

Law and Practice

Authors



Raposo Bernardo is an international full-service law firm, with practices in Africa (Angola, Cabo Verde, Guinea Bissau, Mozambique, and São Tomé and Príncipe) and Europe (Portugal, Poland and Spain). In Cabo Verde, with a team of 16 lawyers locally and abroad, the firm offers more than 20 years of local experience by participating in the most innovative and relevant projects, regularly representing the interests of national and international players, investment and commercial banks, investment funds, financial intermediaries, governmental entities, and public sector and private agents in legal matters concerning banking, energy, aviation, pharmaceutical, tourism and leisure, and construction and infrastructure. The firm’s expertise includes advising on operations such as corporate finance and major project finance; large M&A transactions; privatisations; PPP projects; large infrastructure projects; drafts of banking, financial markets and insurance legislation; and working closely with major international law firms.

Trends and Development

Authors



Raposo Bernardo is an international full-service law firm, with practices in Africa (Angola, Cabo Verde, Guinea Bissau, Mozambique, and São Tomé and Príncipe) and Europe (Portugal, Poland and Spain). In Cabo Verde, with a team of 16 lawyers locally and abroad, the firm offers more than 20 years of local experience by participating in the most innovative and relevant projects, regularly representing the interests of national and international players, investment and commercial banks, investment funds, financial intermediaries, governmental entities, and public sector and private agents in legal matters concerning banking, energy, aviation, pharmaceutical, tourism and leisure, and construction and infrastructure. The firm’s expertise includes advising on operations such as corporate finance and major project finance; large M&A transactions; privatisations; PPP projects; large infrastructure projects; drafts of banking, financial markets and insurance legislation; and working closely with major international law firms.

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