Cabo Verde digital Nomad Visa : Key Benefits Tax & Income

Financial Freedom in the Atlantic: The Tax & Income Benefits of Cabo Verde's Remote Working Program

For digital nomads seeking a base that maximizes take-home pay while offering a subtropical lifestyle, Cabo Verde's Remote Working Program presents a compelling financial case. Launched in December 2020 as a pivot from traditional tourism to a "digital brain gain" strategy, this program offers one of the most competitive fiscal environments for remote workers globally,.

Here is a breakdown of the key financial benefits and a comparative look at how this specific visa stacks up against other residency options regarding taxation.

1. The Key Benefit: 0% Income Tax on Foreign Earnings

The headline advantage of the Cabo Verde Remote Working Program is its tax treatment. Unlike standard tax residency rules—which typically trigger tax liability after spending 183 days in a country—this specific visa carves out a legal exception for nomads.

• Exemption Status: Holders of the Remote Working visa are granted temporary residency but are not considered tax residents. Consequently, they are exempt from paying income tax in Cabo Verde on earnings generated outside the country,,.
• Scope: This exemption applies to salaries, freelance income, and other earnings sourced from foreign entities. You are only liable for taxes in your home country or primary tax residency,.
• Import Duties: Nomads are also exempt from import taxes on personal belongings and equipment brought into the country, facilitating the setup of a home office without customs penalties,.

2. Highly Accessible Income Thresholds

While many digital nomad visas (such as those in the Cayman Islands or the UAE) cater to high-net-worth individuals with income requirements exceeding $5,000 or even $8,000 per month, Cabo Verde remains inclusive.

• Individuals: You must prove a minimum average bank balance of €1,500 (approx. $1,615) over the last six months,,.
• Families: For those bringing a spouse or dependents, the requirement increases to €2,700 (approx. $2,900),.
• Comparison: This threshold is significantly lower than competitors like Dubai ($3,500–$5,000) or Iceland ($7,000+), making it accessible to early-stage entrepreneurs and freelancers,.

3. Low Processing Costs

The financial barrier to entry is negligible.

• Visa Fee: Approximately €20 ($20.47) paid upon arrival,.
• Airport Security Fee (TSA): €34 ($34.81), also paid upon arrival,.
• Total: Roughly €54 per person, contrasting sharply with fees in Barbados ($2,000) or Anguilla ($2,000),.

Pros & Cons: Visa Types and Taxation

Choosing the right legal status is critical for your tax planning. Below is a comparison of the Remote Working Program against other common entry methods.

Option A: Remote Working Program (Digital Nomad Visa)

Best for: Mid-to-long term nomads (6–12 months) optimizing for tax efficiency.

Pros Cons
0% Local Tax: Explicit exemption from local income tax on foreign earnings. 

Time Limit: Valid for 6 months, renewable for another 6 months (1 year total). Not a permanent solution.
Legal Work Status: Allows you to work legally for foreign clients/employers. 

Restricted Income: Strictly prohibits engaging in local employment or providing services to Cabo Verdean companies.
Import Perks: Exemption on customs duties for professional equipment. 

No Path to Citizenship: Time spent under this visa does not typically count toward permanent residency or citizenship.

Option B: Standard Tourist Visa

Best for: Short stays (<90 days) or "test drives."

Pros Cons
Zero Paperwork: Visa-free for many nationalities (EU/UK/USA) up to 30 days; easy extension to 90 days,. 

Legal Grey Area: Technically prohibits work. While enforcement on remote laptops is low, it offers no legal protection.

No Income Proof: No bank statements required for entry (beyond basic subsistence proof at borders). 

Tax Risk: Staying over 183 days without the specific Nomad Visa may accidentally trigger tax residency under general tax laws,.