Hiring Foreign Human Ressources in Cabo Verde

Hiring Foreign Talent in Cabo Verde: Navigating Visas, Quotas, and Investment Requirements

Cabo Verde actively welcomes foreign investment and specialized skills, but bringing international talent into the country requires navigating a specific regulatory framework. Whether you're planning to hire expatriate managers, bring in technical specialists, or establish operations with foreign ownership, understanding the visa system, sectoral restrictions, and practical requirements is essential. Here's what you need to know.

Understanding Work Permits and ECOWAS Exemptions

The Basic Rule

Foreign nationals from non-ECOWAS countries must obtain a work permit to legally work in Cabo Verde. However, citizens from Economic Community of West African States (ECOWAS) member countries are exempt from this requirement—a significant advantage for businesses recruiting from the West African region.

The Labor Market Test (In Theory)

Employers are generally required to demonstrate why a foreign worker is necessary for a position, particularly when local workers might be available. However, this formal labor market test is "foreseen by law but not carried out in practice," according to official sources. In reality, employers typically need to show that no qualified Cape Verdean citizens are available to fill the position—a relatively straightforward requirement given Cabo Verde's acknowledged skills shortage.

The Skills Gap Reality

The Cabo Verdean economy faces a sharp shortage of specialized labor, particularly in technical and professional roles. This means local firms routinely import specialized talent to fill critical positions. Small businesses face particular challenges in attracting and retaining qualified staff due to competition from the public sector and emigration. This skills deficit works in favor of foreign businesses seeking to bring in expatriate expertise.

Visa Categories: Choosing the Right Pathway

Cabo Verde offers several visa options depending on your business needs and the duration of employment:

Digital Nomad Visa (Remote Working Program)

Perfect for remote workers, freelancers, or self-employed individuals working for companies outside Cabo Verde:

Duration: Six months, renewable for another six months (total one year)
Fees: €20 visa fee plus €34 airport fee
Income requirement: Average monthly bank balance of at least €1,500 for individuals or €2,700 for families over the past six months
Tax benefit: Exempt from local income tax on foreign earnings for up to one year
Processing time: Approximately two weeks

Employment/Work Permit

For foreign professionals with valid local employment contracts:

Duration: One year initially, renewable every two years
Application fee: $150 (temporary work visa) to $300 (long-term work visa)
Processing time: 4-6 weeks
Requirement: Employer sponsorship and proof that no qualified Cape Verdean citizens are available

Highly Skilled Worker Visa

For specialized professionals in fields like technology, medicine, and engineering:

Application fee: $400
Processing time: 4-6 weeks
Benefit: Cabo Verde's IFICI regime (fiscal incentive for scientific research and innovation) specifically targets highly qualified professions including executive directors, IT specialists, and production directors

Intra-Company Transfer Visa

For employees transferred within the same multinational organization:

Application fee: $200
Processing time: 4-6 weeks
Duration: Varies based on transfer agreement

Investment Residence Permit ("Green Card")

Available to foreigners making qualifying investments:

Duration: Five years, renewable
Investment threshold: €60,000 to €150,000 (sources vary) in real estate or productive projects
Processing time: 3-4 months
Long-term pathway: After five years of continuous legal temporary residency, holders can apply for permanent residency

Important tax consideration: If a non-resident company sends personnel to Cabo Verde for 183 days or more within a 12-month period (continuous or not), the company is deemed to have a Permanent Establishment and becomes subject to corporate tax.

Sectoral Restrictions: Where Foreign Ownership is Limited

While Cabo Verde permits 100% foreign ownership in most sectors, specific strategic industries impose minimum local shareholding requirements:

Fisheries Sector

Cabo Verdean ownership requirement: Minimum 51% equity held by local partners
Foreign ownership cap: Maximum 49%

Inter-Island Maritime Transport

Cabo Verdean ownership requirement: Minimum 25% equity held by local partners

Tour Operators and Travel Agencies

Companies with more than 50% foreign ownership may face limitations on the number of service suppliers under GATS commitments

These restrictions indirectly affect hiring decisions, as local partners will likely influence staffing choices and may advocate for hiring Cabo Verdean nationals where possible.

Investment-Linked Job Creation Requirements

Special economic zones and certain investment incentives impose minimum job creation quotas:

International Industry/Trade Centre: Minimum 10 jobs required
International Service Provision Center: Minimum 4 dependent and qualified workers per entity (in exchange for reduced 2.5% corporate tax rate)
Major investment conventions: Projects above 3 billion CVE receiving tax benefits must create at least 20 direct qualified jobs

These requirements mean that bringing in expatriate management often goes hand-in-hand with hiring local staff to meet quota obligations.

The Expatriate Management Process: Practical Steps

Documentation Requirements

To bring in foreign managers and technical staff, prepare:

Valid employment offer from a Cabo Verdean employer
Proof of qualifications and professional credentials
Health clearance certificate
Clean criminal record
Proof of accommodation in Cabo Verde

Extended Probationary Periods

For management positions, Cabo Verde allows substantially longer probationary periods than for general employees:

Management/senior functions: Up to 12 months
Technical complexity roles: Up to 6 months

This extended evaluation period provides flexibility when hiring expensive expatriate talent.

Investment Registration Thresholds

If establishing a significant operation:

All investments ≥ 5 million CVE must follow the Balcão Único do Investidor (BUI) process
Some sources cite a 50 million CVE minimum for formal investment approval
The approval process takes approximately 75 days from submission to authorization

Cabo Verde TradeInvest: Your One-Stop Shop

Cabo Verde TradeInvest (CVTI) serves as the government's single point of contact for foreign investors and provides crucial "After Care services":

Immigration Assistance

Processing work permits for technical staff and foreign spouses
Handling immigration formalities and documentation

Settlement Support

Helping expatriates and families find housing
Connecting investors with lawyers, banks, and other service providers

Regulatory Processing

Initiating all necessary legal procedures for project implementation
Obtaining required opinions, approvals, and authorizations
Managing the 75-day investment approval timeline

Using CVTI's services can significantly streamline the otherwise complex process of establishing operations and bringing in foreign personnel.

Income Repatriation: Protecting Your Investment

A critical concern for expatriate workers and foreign investors is the ability to transfer earnings abroad.

The Right to Repatriate

Foreign workers—and Cabo Verdean workers who resided abroad for more than five years at hiring—have the right to convert income to freely convertible currency and transfer it abroad.

Conditions

This right requires:

All fiscal obligations (taxes) have been met
Foreign investment is duly registered with the Banco de Cabo Verde (BCV)
CVTI handles this electronic registration process

Timeline

The BCV must authorize fund transfers abroad within 30 days of request submission.

Leveraging the Diaspora

Cabo Verde's diaspora population (estimated at 700,000—double the domestic population) represents a strategic talent pool. The government actively encourages diaspora engagement through:

High-quality digital infrastructure development
Programs for diaspora members to provide mentorship and technical advice
Initiatives to attract "bright minds" back to the country

Diaspora Cabo Verdeans often bring international experience, language skills, and professional networks while requiring no work permit—making them attractive hires for foreign businesses establishing local operations.

Strategic Considerations for Foreign Employers

When planning to hire international talent in Cabo Verde:

Start early: The 4-6 week processing time for most work visas means planning ahead is essential
Consider ECOWAS talent: Recruiting from West African ECOWAS countries eliminates work permit requirements
Leverage investment incentives: If making a substantial investment (€60,000+), consider the residence permit pathway for key executives
Use CVTI services: The 75-day investment approval process and immigration support justify using the official one-stop shop
Plan for local hiring: Sectoral restrictions and job creation minimums mean you'll likely need a mixed local-expatriate workforce
Document everything: Maintain clear records of why foreign hires are necessary, especially their specialized skills or qualifications
Budget for the full cycle: Factor in visa fees ($150-$400 per person), processing time, and potential relocation support

While Cabo Verde's regulatory framework may appear complex, the country's genuine need for specialized skills, practical approach to labor market testing, and institutional support through CVTI make it relatively straightforward to bring in necessary foreign talent—particularly compared to many other jurisdictions. Understanding these requirements and planning accordingly will help you build the international team your Cabo Verdean operation needs to succeed.