1. An Attractive Destination for Retirees

Cape Verde has established itself as a safe and welcoming destination for retirees from around the world, offering a mild climate, peaceful communities, and a growing quality of life. Located in the middle of the Atlantic, its well-known political and institutional stability, combined with proximity to Portugal and Europe, the West African coast, and the United States, makes this archipelago particularly appealing for a relaxed and enjoyable retirement.

2. Residence Permit and Structured Tax Benefits for Foreign Pensioners

Residence Permit
Foreigners with pensions exceeding 130,000 Cape Verdean escudos in foreign currency, either individually or as a couple, generated outside Cape Verde, may be granted permanent residence in the country.

Exemption from Taxes on Foreign Pensions
Retirement income generated outside Cape Verde is exempt from IRPS (Personal Income Tax), provided it does not originate locally. This represents a significant tax saving.

Other Rights and Exemptions
Foreign pensioners choosing Cape Verde as their residence also enjoy the following benefits:

• The right to import a personal vehicle free of customs duties, taxes, and fees;
• The right to import personal belongings or household furniture free of customs duties, taxes, and fees;
• Exemption from property tax when acquiring a residence for personal use.

They may also benefit from the Foreign Investor Status if they make significant investments in the country, under the applicable legislation.

Green Card-Associated Exemptions and Reductions
Foreigners purchasing a second residence in Cape Verde above certain thresholds (e.g., real estate investments over €120,000) can obtain permanent resident status via the Green Card. This status provides:

• Exemption from the Single Property Tax (IUP) upon transfer and a 50% reduction for the following ten years;
• Tax exemption on retirement pensions not generated in the country.

3. Investment Incentives and Diaspora Regime

Cape Verdean law — through Law No. 73/IX/2020 — provides specific tax incentives for retired emigrants who invest in the country:

• Exemption from Corporate Income Tax (IRPC) on dividends and profits distributed from investments made in Cape Verde;
• Exemption from customs duties on imported construction materials or furniture for primary residences;
• Flexibility to invest in companies, shareholdings, or local projects, with the aim of encouraging diaspora retirees to contribute to the local economy.

4. Double Taxation Agreements and Fiscal Transparency

Cape Verde maintains double taxation agreements with countries such as Portugal, Spain, Guinea-Bissau, Mauritius, among others.
These agreements allow many pensioners to avoid being taxed on the same income both in their country of origin and in Cape Verde.

Additionally, local legislation aligns with international standards of fiscal transparency, including the automatic exchange of information with foreign tax authorities.

5. Quality of Life and Social Stability

Cape Verde demonstrates solid human development indicators, with a high life expectancy and consolidating public and private healthcare systems.
The cost of living is relatively affordable, especially outside major urban centers, and the country stands out for its safety and stability.

Conclusion

For foreign retirees seeking to maximize pension income, enjoy a mild climate at moderate living costs, and benefit from a favorable tax environment, Cape Verde represents an excellent choice. The combination of pension tax exemptions, a diaspora-friendly investment regime, and the Green Card status creates a highly competitive environment compared to other European retirement destinations.