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Cape Verde, formally the Republic of Cabo Verde, is an archipelago and island republic in the central Atlantic Ocean made up of 10 volcanic islands with a total land area of around 4,033 square kilometers (1,557 sq mi). These islands are located between 600 and 850 kilometers (320 and 460 nautical miles) west of Cap-Vert, Africa's westernmost point. The Cape Verde islands, together with the Azores, Canary Islands, Madeira, and Savage Isles, are part of the Macaronesia ecoregion.
The archipelago of Cape Verde remained uninhabited until the 15th century, when Portuguese explorers found and colonized the islands, creating the first European colony in the tropics. Because the Cape Verde islands were strategically placed to participate in the Atlantic slave trade, they grew commercially lucrative throughout the 16th and 17th centuries, drawing merchants, privateers, and pirates. Its economy deteriorated in the nineteenth century as a result of the abolition of the Atlantic slave trade, and many of its population departed during that time. Cape Verde, on the other hand, eventually recovered economically, becoming an important commercial hub and helpful stopping place along major maritime routes. Cape Verde was formed as an overseas province of Portugal in 1951, but its people continued to fight for independence, which they won in 1975.
Cape Verde has been a stable representative democracy since the early 1990s, and it has remained one of Africa's most prosperous and democratic nations. Due to a lack of natural resources, its expanding economy is mostly service-oriented, with an increasing emphasis on tourism and international investment. Its population of around 483,628 (as of the 2021 Census) is mostly of mixed African and European ancestry, and it is largely Roman Catholic, reflecting the legacy of the Portuguese administration. A sizable Cape Verdean diaspora group exists across the globe, particularly in the United States and Portugal, outnumbering the island's people. Cape Verde is an African Union member country.
The official language of Cape Verde is Portuguese. It is the official language of both education and government. It's also used in newspapers, on TV, and on the radio. The majority of the population speaks Cape Verdean Creole, which is the acknowledged national language.
Employees are entitled to 22 days of compensated voluntary leave per year. If there was a formal arrangement between the employee and the boss about the allocation of accrued annual leave, this leave would be taken in the year it was granted.
If an employee has an indefinite term, he or she must serve for at least six months before being considered for compensated regular leave. Employees on fixed-term contracts are liable for paid leave at the halfway point of their contract, which is equal to their duration of employment.
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Employees have up to 1,095 days of paid maternity time available to them. Employers pay you 100 percent for the first three days. Wage is paid to participating workers by Cape Verde's social security scheme beginning on the fourth day. A medical certificate is required if the disease lasts more than 30 days. Employees must have contributed for at least four months, plus 30 days in the three months preceding departure, to be considered.
Cape Verdean female workers are entitled to 60 days of paid maternity leave. The employer spends the full fee if the employee is not compensated for social security insurance. Employees who have made at least four months of payments, plus 30 days in the three months prior to leave, are eligible for maternity coverage by social security.
Only if the mother is unable to provide for the infant due to physical or emotional incapacity or if the mother dies within 120 days of the child's birth is a male employee entitled to paternity leave. The leave is for 60 days, minus any time the mother has already taken, but no fewer than 30 days if the mother dies.
Other than the already mentioned terms for maternity and paternity leaves, there are no provisions in the Cabo Verde law regarding parental leave.
Employers may terminate an employment contract for cause, at the end of the contract term (if the contract is for a defined duration), by the employee, or by mutual consent between the employer and employee. Employers must have a legitimate basis for terminating an employee, which may include employee misbehavior or economic and market considerations.
Employers must provide 40 days' notice prior to terminating an employee for cause related to the employee's behavior. The employee has five days to react. If the employer wishes to fire the employee, he or she must provide 30 days notice and explain the basis for the termination. If an employer fails to offer notice in a timely manner, he or she must compensate the employee in place of notice.
Employers must offer a ten-day notice of termination to an employee under a fixed-term contract. If the employer fails to provide notice and no alternative arrangement is established, the fixed-term contract is automatically extended for the same duration. Unless a collective bargaining agreement provides otherwise, employees terminated for reason or redundancy are entitled to a certain amount of severance pay. When an employment contract is terminated owing to the employee's retirement or mutual agreement between the employer and employee, no notice is required.
Employees must provide notice to their employers before to terminating an employment contract. The notice period is fifteen days and increases by fifteen days for each year of service, up to a maximum of two months.
The duration of the trial period is determined by the type of contract and/or the job title and functions of the employees. In the case of a non-fixed-term employment contract, the trial period is typically two months, but may be extended to six months if the functions to be performed require technical complexity and responsibility and if the additional time is deemed necessary to evaluate the employee's ability to perform the job.
In the event of a just cause dismissal, the Labour Code provides for severance pay equal to one month's pay for each year of service. Additionally, employees laid off as a result of collective redundancy are entitled to one month's pay for every year of service. A collective bargaining agreement may increase the amount of severance pay. Severance compensation for collective redundancy and just-cause dismissal has also been decreased from 30 days to 20 days per year of service as part of a 2016 Labour Code amendment.
In Cape Verde, the standard work week is 44 hours and is limited to eight hours per day. Employees are entitled to 24 hours of rest per week, which are typically Sundays but can be any day.
Upper management positions and certain highly qualified employees are exempt from the eight-hour daily limit. These employees, however, are entitled to premium pay ranging from 20% to 35% of the standard wage.
Employees between the ages of 16 and 18 work a minimum of 38 hours per week and a maximum of seven hours per day. Overtime is permitted only in the event of a force majeure and is limited to two hours per day or 30 hours per year. Workers under the age of 18 are not permitted to work between the hours of 8 p.m. and 7 a.m. unless their professional training requires it and is authorized by Cape Verde's Labor Department.
From 10 p.m. to 6 a.m., night work is performed. Employees who work nights earn an additional 25% of their base salary. Workers may be entitled to this higher rate of pay for night work even after transitioning to daytime work in some instances. Overtime hours worked at night are limited to seven per week.
Overtime hours are limited to two per day or 160 per year. The annual limit is increased to 300 if the employee provides written consent. Overtime is compensated at a percentage of the basic salary if worked on a regular workday, or at 100% if worked on a rest day or a public holiday.
Cabo Verde's Prime Minister announced an increase in the minimum wage to CVE 15,000 per month in early 2020. This regulatory amendment took effect in 2021.
Employers should compensate employees in the local currency unless otherwise agreed. If internal regulations or collective bargaining agreements (CBAs) establish a different method of compensation, it must be equal to or greater than the minimum wage requirements. When both currency and goods or services are used to compensate, non-cash compensation cannot be more valuable than cash compensation.
Employers are not required to provide private health insurance when providing health coverage through the National Social Insurance Institute.
Cabo Verde's labor regulations do not specify required bonuses or additional benefits for employees. Employers may provide more through collective bargaining agreements or internal regulations.
Companies in Cabo Verde are subject to a corporate tax rate of 25 percent.
Individuals in Cabo Verde are imposed an income tax rate that ranges from 16.5 percent to 27.5 percent. The actual percentage varies depending on the income tax bracket the individual belongs to.
The standard rate for the value-added tax (VAT) or goods and sales tax (GST) in Cabo Verde is set at 15 percent.
Over 200 nations have been granted free entry by the Cape Verde government. In terms of stay, however, the details may differ depending on nationality. All of these nations will need to register for a Pre-Arrival Registration if they arrive in Cape Verde by flight for reasons other than transit. Because you simply need to provide the digital authorisation, Pre-Arrival Registration is a terrific method to save time at the airport. This travel document provides for a 30-day maximum stay per entrance.
The Pre-Arrival Registration procedure is entirely online, so all you need to get started is an internet connection. It will only take a few minutes for you to fill out a simple application form with your information. When you arrive in Cape Verde, you must produce your travel document to the local authorities.
If you intend to visit Cape Verde for another purpose, you may need to start the visa procedure at the closest Cape Verde Embassy or Consulate. In addition, around 45 nationalities are required to complete this process at the embassy. In this instance, you may apply for a variety of travel purposes, including tourism, job, study, and transit, among others. The number of entries, days of stay, and other parameters may vary depending on the application you submit.
According to the Cape Verde visa regulations, you have two options for visiting Cape Verde for tourist purposes. At the Cape Verde Embassy or Consulate, you may receive Pre-Arrival Registration or a tourist visa. This scenario will be determined by your nationality and the number of days you choose to travel around Cape Verde.
The Pre-Arrival Registration method was established in 2019 and has made the travel to Cape Verde easier for millions of tourists. There are no longer large lineups at Cape Verde's airports since most visitors simply need to display this digital authorisation. It has drastically shortened the immigration formalities at Cape Verde's airports. Even if you have a Pre-Arrival Registration, immigration authorities may refuse you admission. As a result, be sure to present sufficient finances for your stay as well as data regarding your hotel arrangements.
For other kinds of visas, you should check with the Cape Verde Embassy or Consulate for further information.
If you are flying into Cape Verde, you must pay the Airport Security Tax, sometimes known as the TSA. Only newborns under the age of two and Cape Verde citizens are exempt from this fee. This payment enables Cape Verde authorities to fund border security services as well as any other services offered to air passengers. The Cape Verde visa policy makes this tax necessary.
International flights must pay 3,400 CVE (about USD 37). The good news is that this tax may be paid when you apply for Pre-Arrival Registration. You do, however, have the option of paying it as soon as you arrive. You may pay with cash or a credit or debit card. In this instance, you will almost certainly be charged an additional fee.
For domestic flights, there is a TSA that costs 150 CVE (about USD 2) and is included in your travel ticket.
Furthermore, we must specify visas obtained from a Cape Verde Embassy or Consulate. According to Cape Verde visa regulations, around 45 nations must visit an embassy to get a visa for Cape Verde. Depending on your position, you may apply for a work visa, a student visa, a resident visa, or other possibilities.
The duration of validity varies depending on the kind of visa. Furthermore, the granting of this visa might take several weeks. As a result, apply well in advance so that you obtain your visa before your travel.
If there isn't a formal agreement in existence, both the employer and the employee have the right to obtain one. Contracts should contain any information relevant to the nature of the job, such as:
Dates of start and finish
Salary or wages
A fixed-term contract may be undertaken if the job is for a short length of time, to replace a worker on leave, to conduct temporary or seasonal activities, or owing to periodic changes in activity. Fixed-term contracts have a lifespan of three to five years, including extensions. If a fixed-term contract is extended beyond five years, it is considered an indefinite-term contract.
Indefinite-term employment contracts are for an indefinite time, include a start date, and usually include a probationary period.
Cape Verde Escudo (CVE)
Every company's Cape Verde subsidiary formation procedure is unique. One of the first things you should think about is where you will conduct your company in Cape Verde. Because the city or region you pick may have varied subsidiary laws, it's advisable to choose a location with the most beneficial rules. If you are unfamiliar with all of the requirements that must be followed, we suggest partnering with an expert who can assist you in remaining compliant.
Following that, you must incorporate your company as a separate legal entity. Cape Verde will recognize your firm as a co-partnership, shareholder society, anonymous society (limited company), limited society or joint stock company, or co-operative society. Each has its own incorporation procedure and Cape Verde subsidiary rules, so we suggest examining all choices and selecting the one that best fits your company objectives.
Most businesses register as a limited liability corporation (LLC) because it allows them to function freely in Cape Verde while also protecting their shareholders and parent firm. If you intend to incorporate your Cape Verde subsidiary as an LLC, you must take the following steps:
1. Look for a one-of-a-kind business name and reserve it.
2. Fill up your company's registration using an internal online registration system.
3. Publish your notice of incorporation on the Casa do Cidado website.
4. Obtain a federal tax identification number (TIN).
5. Obtain a municipal permit.
6. Employees must be registered with the Social Security Administration.
7. Employees should be registered with an insurance firm for accident insurance.
8. Employees must be registered with the labor inspectorate.
9. Obtain and legalize the business books.
Cape Verde's subsidiary regulations for LLCs demand that all initial capital be paid in Cape Verdean escudos and that the number of shareholders be indicated. This capital must be deposited in a bank within two working days. To start a company, you'll need to pay 10,000 ECV. Then you'll have to pay an additional 10,000 ECV to register it with the Chamber of Commerce.
You must produce sufficient identity, including a passport and tax identification, in order to submit a successful application. If you're submitting an application on behalf of a whole firm, you'll need a certificate of business registration as well as a power of attorney. You must translate and notarize all original papers if you authored any of your documents in a foreign language.