Cabo Verde - Special Economic Zone for Technologies - ZEET

Investing in the "Cyber Island": Unlocking Value at Cabo Verde's TechPark and ZEET

For global investors seeking an emerging market that combines political stability with aggressive fiscal incentives, Cabo Verde presents a compelling case. Moving beyond its traditional tourism stronghold, the archipelago is executing a structural transformation to become a mid-Atlantic digital hub. At the heart of this strategy lies the Cabo Verde Technology Park (TechPark CV) and its integrated Special Economic Zone for Technologies (ZEET).

This infrastructure, backed by the African Development Bank, offers one of the most competitive fiscal regimes in the region, specifically designed to attract Foreign Direct Investment (FDI) in ICT, cloud computing, and digital services.

The ZEET Advantage: A Tax-Efficient Ecosystem

The Government of Cabo Verde has established the Zona Económica Especial para Tecnologias (ZEET) to position the country as a competitive jurisdiction for international tech companies. Entities licensed to operate within the TechPark benefit from a fiscal framework that rivals established low-tax jurisdictions.

Key Fiscal Benefits for ZEET Investors:

Corporate Income Tax (IRPC): Companies enjoy a drastically reduced corporate tax rate of 2.5%. This is significantly lower than the standard rate, placing the ZEET among the world's lowest statutory corporate tax jurisdictions for compliant businesses.
Dividend Tax Exemption: Investors benefit from an exemption on the Personal Income Tax (IRPS) or Corporate Income Tax (IRPC) applicable to distributed profits and dividends. This ensures that returns on investment can be repatriated or reinvested without additional tax leakage.
Import Duties Exemption: To facilitate the setup of high-tech operations, the regime provides exemptions from customs duties on essential materials, hardware, software, and raw materials required for operations.
VAT Exemption: Companies are exempt from Value Added Tax, further reducing operational overheads.
Property Tax (IUP) Exemption: Investors are exempt from the Single Property Tax (IUP) on the acquisition of real estate assets required for their installation within the zone.
Stamp Duty Exemption: Financing contracts and other acts related to the investment are exempt from stamp duty.

The TechPark CV

The tax incentives are supported by a tangible asset: the TechPark CV, an investment of approximately €45 million (approx. $50 million) designed to host major international tech firms. The park operates on a dual-pole model leveraging the specific strengths of the country's two main economic centers:

Praia (Santiago Island): The main hub (Castellon Vale) focuses on e-governance, fintech, and general digital services, hosting a state-of-the-art Data Center.
Mindelo (São Vicente Island): The secondary hub (Julien Vale) focuses on the "Blue Economy" (ocean technologies) and serves as a disaster recovery site and cybersecurity center.

The TechPark includes business centers, incubation facilities for startups, training centers for certification, and conference capabilities, all connected via a dedicated high-speed fiber ring.

Strategic Connectivity: The EllaLink Advantage

Investing in the ZEET is not just about tax efficiency; it is about connectivity. Cabo Verde is strategically positioned at the intersection of the Atlantic. The country is connected to the EllaLink submarine cable system, which provides a direct, low-latency data connection between Europe and Latin America (Brazil).

This infrastructure allows companies based in the TechPark to serve European and South American markets with latency speeds comparable to being on the continent, but with a significantly lower tax burden.

Summary

Cabo Verde offers investors a rare combination: the stability of a democracy with a currency pegged to the Euro, the connectivity of a trans-Atlantic data hub, and the fiscal aggression of a special economic zone. For ICT firms, BPO operators, and digital service providers, the TechPark and ZEET represent a turnkey solution for entering the African and Atlantic markets.

Cabo Verde Special Economic Zone for Technologies - ZEET