Work Permits for Foreign Employees
Work Permits & Foreign Talent in Cabo Verde: An Investor's Guide
For international investors, the ability to bring in specialized expatriate staff is often a critical part of setting up operations. Cabo Verde offers a legal environment that generally treats foreign and local investors equally. However, the labor market is regulated to protect the local workforce, meaning investors must navigate specific administrative procedures to hire non-nationals.
Here's the essential framework for work permits and foreign hiring in 2024–2025.
1. The General Principle: Priority to Nationals
While the Investment Law grants foreign investors the freedom to manage their businesses, the Labor Code (Código Laboral) establishes a "labor market test."
- The Rule: Hiring foreign workers is generally permitted only when the employer can show that no qualified Cabo Verdean nationals are available to fill the position.
- Definition: "Foreign worker" means anyone performing intellectual or manual work who doesn't hold Cabo Verdean nationality.
- Presence Requirement: Professional activity by foreigners is reserved for those who are already legally present or residing in the country.
2. The Hiring Process and Contractual Requirements
Unlike contracts for nationals, which can sometimes be oral, strict formalities apply to foreign employees.
- Written Contracts: Employment contracts with foreign workers must be in writing.
- Government Validation: To be legally effective, the contract must receive approval (visa) from the General Directorate of Labor (Direção-Geral do Trabalho - DGT).
- Exceptions: The written contract requirement is waived if the foreign worker has held legal residence in Cabo Verde for more than three years or is a close relative (spouse/dependent) of a Cabo Verdean national.
3. Strategic Visa Categories for Investors
Investors should use specific visa programs depending on the type of talent they're bringing in.
A. The "Remote Working" Program (Digital Nomads) For investors wanting to bring in specialized consultants or allowing staff to work remotely from the islands, Cabo Verde launched a specific program in December 2020.
- Eligibility: Open to citizens of Europe, North America, CPLP (Portuguese-speaking countries), and ECOWAS (West African countries).
- Requirements: Proof of income averaging €1,500/month for individuals or €2,700/month for families.
- Benefits: A temporary visa valid for six months (renewable). Importantly, participants are exempt from income tax on their foreign earnings.
- Cost: Approximately €20 for the visa fee plus a €34 airport fee.
B. CPLP Mobility Agreement (Lusophone Countries) If your expatriate staff comes from Portugal, Brazil, Angola, or other CPLP nations, the process has recently been simplified.
- Framework: The government amended immigration law to incorporate the CPLP Mobility Agreement. This makes it easier to grant residence permits based on reciprocity.
- Status: Portugal and Cabo Verde are advanced in implementing this, theoretically removing many administrative hurdles for citizens of these member states to reside and work.
C. ECOWAS Community Citizens Cabo Verde is a member of the Economic Community of West African States (ECOWAS).
- Rights: Theoretically, citizens of member states (e.g., Senegal, Nigeria, Ghana) have the right to free movement, residence, and establishment.
- Reality: In practice, administrative hurdles remain. Border control often requires proof of financial means (approximately €1,000) and confirmed return tickets for entry, and "free movement" doesn't always translate automatically to immediate work authorization without administrative steps.
4. Social Security and Taxation
Foreign workers are generally subject to the same tax and social security obligations as nationals (unless covered by the Digital Nomad exemption).
- Social Security (INPS): Enrollment is mandatory. The total contribution is 23% of the salary, split between the employer (15%) and the employee (8%).
- Rights: Foreign employees legally hired have the same rights as nationals regarding salary, health, and safety.
5. Addressing the Skills Gap
Investors often cite a "skills gap" as the primary reason for hiring foreigners, particularly for management and specialized technical roles in tourism and construction.
- The Challenge: While the population has high literacy, there's a shortage of specialized skills (e.g., senior hotel management, specialized engineering, languages like English).
- The Solution: The government actively encourages (and in some large investment agreements, may require) plans for transferring knowledge to local staff. Investors are advised to combine foreign hiring with training programs for local employees to ensure long-term sustainability and compliance.
Summary Checklist for Investors
- Justify the Hire: Document the lack of local skills for the specific role to satisfy the Labor Code.
- Draft the Contract: Ensure it's in writing and clearly states the duration and role.
- Get DGT Approval: Submit the contract to the General Directorate of Labor for the mandatory approval/stamp.
- Register for Residency: Ensure the employee regularizes their residency status with the National Police/Borders Directorate.
- Register for INPS: Enroll the employee in the National Social Security Institute.
Disclaimer: Immigration and labor laws are subject to administrative changes. Investors are strongly advised to consult with local legal counsel or Cabo Verde TradeInvest for the most current procedures.
Cabo Verde Work Permits for Foreign Employees
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Cabo Verde Work Permits for Foreign Employees
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Cabo Verde Work Permits for Foreign Employees
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Cabo Verde Work Permits for Foreign Employees
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