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FOREIGN INVESTMENT

Cape Verde's doors are open to private foreign investment as a means to create a sustainable growing economy through job creation and capital investment and thereafter the collection of tax revenues. Legislation to entice external private investment into Cape Verde was introduced in 1989. The 'Lei de Investimento Externo' ('External Investment Law') introduced in 1993 broadened and enhanced the existing legislation to attract private foreign investment by non-Cape Verdean nationals and includes a 5-year initial tax holiday and a subsequent tax reduction by 50% on corporate tax (currently 30%) for the following 10 years. These incentives can be extended indefinitely, so long as adequate reinvestment is made.

Regarding tourism investment, an exemption is granted on import duties for materials necessary for construction and installation of projects. All net revenues are guaranteed transference out of Cape Verde in full and foreign currency bank accounts are available. Any dispute between the Government and foreign investors can be decided upon by a sole-arbitrator appointed by the 'International Chamber of Commerce' in Paris.

Private foreign investors are entitled to residency in Cape Verde if they employ more than 13 nationals or invest more than US$35,000. 'Cabo Verde Investimentos' is a recently-formed government-appointed agency that is officially the front desk for potential foreign investors; the agency also approves and promotes foreign investment projects and arranges further approval needed from the Government.

Private individuals are permitted residency in Cape Verde, being required to prove they have adequate income or equity to support themselves. Retirees must prove they have adequate financial resources arising from pension incomes overseas or other adequate sources of income or equity. There is now an ever-growing community of foreign residents living in Cape Verde.