Cape Verde's doors are open to private foreign investment; legislation to entice foreign investment into the country 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. CGT is very low (3% with significant exemptions on initial gains).
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 'Centre for the Settlement of Investment Disputes' in Washington DC. Regarding tourism investment, an exemption is granted on import duties for materials and equipment necessary for construction, installation, refurbishment or expansion of hotel projects that have been approved for the 'Estatuto de Utilidade Turística' ('Tourism Utility Status'). This development will apply for this status and benefits such as exemption on the import of furniture will be passed on to the buyer if the status is granted.
