Cabo Verde

Cabo Verde

Creates a "Special Economic Zone for Technologies"

12 May 2022

On 12 May 2022, Cabo Verde published in its Official Gazette, Decree-Law No. 15/2022. The Decree creates and regulates the Special Economic Zone for Technologies (ZEET). Located in the ‘Digital Islands Technological Park’, the ZEET covers the contiguous technological real estate areas of “Castelon Vale”, in Praia, and “Julion Vale”, in Mindelo, and is at the center of the digital strategy in Cape Verde.

The Decree establishes the rules for setting up and operating an entity in the ZEET, as well as the applicable tax and customs regime. The ZEET targets tech entities that promote or foster wealth, added value and job creation (youth employment in particular); exports; a culture of innovation, creativity at the level of technological R&D; the development of digital services; and favorable conditions for an incubation hub for tech startups. In addition to financial incentives, entities authorized to operate in the ZEET are granted a number of tax and custom benefits including a 2.5% reduction from corporation tax rate.

ZEET entities are required to comply with the tax obligations foreseen in the tax law, including transfer pricing, autonomous taxation, as well as assessment and payment of taxes. The tax obligations foreseen in the Tax Benefits Code for entities licensed in the International Business Center of Cape Verde are also applicable to ZEET entities. The ZEET regime entered into force on 13 May 2022 and will be effective until 2030.