Cape Verde’s growing tourism sector — with its attractive beaches, islands, and increasing interest from European and global tourists — makes it a promising place to start a tourism business. But to succeed, you must follow local legal, regulatory, and market-specific requirements. Below is a full guide to help you navigate the process.
Understand the opportunity and local context
Tourism and hospitality is one of Cape Verde’s top economic sectors. The country offers appealing natural scenery, beaches, and culture that attract foreign visitors. Cape Verde’s legal and regulatory framework allows foreign investors to engage in tourism and hospitality, provided they follow licensing and “tourism-utility” permit requirements.
Foreign investment is allowed, and foreigners may fully own companies (even 100 %) in many sectors, including tourism — a welcome advantage for international entrepreneurs.
Tax incentives and investor-friendly policies often apply to tourism businesses, which can improve your chances of profitability.
Choose the right legal structure and register your company
Most tourism businesses in Cape Verde (lodging, travel agency, tours, rentals) are set up under a private limited company — known locally as “Lda” (Sociedade por Quotas). This structure allows single-member ownership and has minimal capital requirement, though investors often deposit more to show credibility.
The registration process is relatively fast thanks to the “Company-on-the-Day” service available through the “Casa do Cidadão” (Citizens’ House) on major islands. This allows incorporation within about 24 hours under favourable conditions.
Required documents include valid identity (passport for foreigners), local address, business purpose, and proof of deposited capital.
After registration, you must obtain a Tax Identification Number (NIF) from the tax authority before you begin operations.
Secure appropriate tourism and activity licences
Because tourism is a regulated sector, you will need more than just company registration. Any tourism-related business — hotel, guest house, short-term rental, tour agency — must get sector-specific authorization from the tourism authorities.
If you plan to operate a short-term rental (villa, apartment, guest-room, holiday home), you’ll have to comply with recent rules under the 2025 law governing “Alojamento Complementar” (local lodging). Every unit must be registered, licensed, and taxed. Unlicensed properties — even on platforms like Airbnb — are now illegal.
For larger tourism enterprises (hotels, resorts), you may also need environmental or zoning approvals depending on location or build — especially if it involves construction or renovation.
Plan for tax, compliance and incentives
Cape Verde’s standard corporate tax rate is 25 percent. VAT is 15 percent.
However, tourism businesses may benefit from special incentives, especially when they contribute to job creation or development goals. The government has designed tax benefits to attract investment in prioritized sectors such as tourism and hospitality.
If you hire staff, you must register them for social security under national labour laws.
Design your service offering wisely for the Cape Verde market
Think about what tourists to Cape Verde seek: beach holidays, relaxation, culture, nature. Services could include guesthouses, holiday rentals, island tours, boat trips, eco-tourism, transport, diving or water sports rentals, local food/restaurants.
If offering short-term accommodation, follow the licensing procedure for “Alojamento Local” — register on the official tourism portal, submit identity, property deed or lease, municipal declaration, and pay the licence fee.
Ensure you abide by capacity, safety, and municipal regulations (guest limits, building standards, hygiene, waste management) to avoid fines or shutdowns.
Market and manage operations for sustainability
Use online marketing (social media, travel platforms, tourism websites) to reach both European and global tourists. Given Cape Verde’s tourism appeal, building an online presence will help attract international travellers.
Offer high-quality service, local culture or experiences, transparent pricing and tourist-friendly amenities to build reputation and repeat business.
Use sound financial management — track bookings, taxes, staffing costs, maintenance — to ensure sustainable operations.
Key risks and local realities you must be aware of
Regulations can be strict: unlicensed accommodation or tourism operations are illegal. The 2025 law for short-term rentals means compliance and proper registration is mandatory. Some types of tourism investments (especially larger hotels or developments) may require additional permits (environmental, zoning), especially in sensitive coastal or resort zones. As a foreign investor, you may need to navigate practical challenges: translate legal documents if not in Portuguese, open a local bank account, and understand local labour and tax laws.
Start a tourism business in Cape Verde – full guide
Cape Verde’s growing tourism sector — with its attractive beaches, islands, and increasing interest from European and global tourists — makes it a promising place to start a tourism business. But to succeed, you must follow local legal, regulatory, and market-specific requirements. Below is a full guide to help you navigate the process.
Understand the opportunity and local context
Tourism and hospitality is one of Cape Verde’s top economic sectors. The country offers appealing natural scenery, beaches, and culture that attract foreign visitors. Cape Verde’s legal and regulatory framework allows foreign investors to engage in tourism and hospitality, provided they follow licensing and “tourism-utility” permit requirements.
Foreign investment is allowed, and foreigners may fully own companies (even 100 %) in many sectors, including tourism — a welcome advantage for international entrepreneurs.
Tax incentives and investor-friendly policies often apply to tourism businesses, which can improve your chances of profitability.
Choose the right legal structure and register your company
Most tourism businesses in Cape Verde (lodging, travel agency, tours, rentals) are set up under a private limited company — known locally as “Lda” (Sociedade por Quotas). This structure allows single-member ownership and has minimal capital requirement, though investors often deposit more to show credibility.
The registration process is relatively fast thanks to the “Company-on-the-Day” service available through the “Casa do Cidadão” (Citizens’ House) on major islands. This allows incorporation within about 24 hours under favourable conditions.
Required documents include valid identity (passport for foreigners), local address, business purpose, and proof of deposited capital.
After registration, you must obtain a Tax Identification Number (NIF) from the tax authority before you begin operations.
Secure appropriate tourism and activity licences
Because tourism is a regulated sector, you will need more than just company registration. Any tourism-related business — hotel, guest house, short-term rental, tour agency — must get sector-specific authorization from the tourism authorities.
If you plan to operate a short-term rental (villa, apartment, guest-room, holiday home), you’ll have to comply with recent rules under the 2025 law governing “Alojamento Complementar” (local lodging). Every unit must be registered, licensed, and taxed. Unlicensed properties — even on platforms like Airbnb — are now illegal.
For larger tourism enterprises (hotels, resorts), you may also need environmental or zoning approvals depending on location or build — especially if it involves construction or renovation.
Plan for tax, compliance and incentives
Cape Verde’s standard corporate tax rate is 25 percent. VAT is 15 percent.
However, tourism businesses may benefit from special incentives, especially when they contribute to job creation or development goals. The government has designed tax benefits to attract investment in prioritized sectors such as tourism and hospitality.
If you hire staff, you must register them for social security under national labour laws.
Design your service offering wisely for the Cape Verde market
Think about what tourists to Cape Verde seek: beach holidays, relaxation, culture, nature. Services could include guesthouses, holiday rentals, island tours, boat trips, eco-tourism, transport, diving or water sports rentals, local food/restaurants.
If offering short-term accommodation, follow the licensing procedure for “Alojamento Local” — register on the official tourism portal, submit identity, property deed or lease, municipal declaration, and pay the licence fee.
Ensure you abide by capacity, safety, and municipal regulations (guest limits, building standards, hygiene, waste management) to avoid fines or shutdowns.
Market and manage operations for sustainability
Use online marketing (social media, travel platforms, tourism websites) to reach both European and global tourists. Given Cape Verde’s tourism appeal, building an online presence will help attract international travellers.
Offer high-quality service, local culture or experiences, transparent pricing and tourist-friendly amenities to build reputation and repeat business.
Use sound financial management — track bookings, taxes, staffing costs, maintenance — to ensure sustainable operations.
Key risks and local realities you must be aware of
Regulations can be strict: unlicensed accommodation or tourism operations are illegal. The 2025 law for short-term rentals means compliance and proper registration is mandatory. Some types of tourism investments (especially larger hotels or developments) may require additional permits (environmental, zoning), especially in sensitive coastal or resort zones. As a foreign investor, you may need to navigate practical challenges: translate legal documents if not in Portuguese, open a local bank account, and understand local labour and tax laws.
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