Cape Verde offers an affordable cost of living with a Cost of Living Index (CPI) of 46.3. Groceries (index: 57.4) and restaurant prices (index: 38.8) are notably lower compared to major international cities.

The housing market is considered very expensive, with a Property Price to Income Ratio of 15.0 years. The Rent Index is very low at 8.7, indicating that renting is significantly more affordable than purchasing property.

The Purchasing Power Index is low at 20.0, suggesting a low average income relative to the cost of goods and services when compared to a baseline like New York City.

Cape Verde has a progressive personal income tax with rates ranging from 16.5% to 27.5%, and a maximum personal income tax rate of 24%. An annual exemption applies to net income up to CVE 220,000. The standard Value Added Tax (VAT) is 15%. The annual property tax (IPI) is 0.1% of the taxable value of real estate. Capital gains on property sales are generally taxed at a flat rate of 15%.

Cape Verde's startup ecosystem is ranked 75th worldwide and 2nd in West Africa by StartupBlink's Global Startup Ecosystem Index 2025, and 5th in the Africa Entrepreneurial Ecosystem Index. The government actively supports entrepreneurship through initiatives like simplified business registration, tax incentives, and a technology park aimed at making the country a digital hub. Challenges include poor physical infrastructure and a cautious investment climate.

Cape Verde operates a dual healthcare system with public and private facilities; public services are generally affordable, but expats often opt for private care. The pension system includes contributory and non-contributory schemes, with over 90% of older persons receiving a pension. Unemployment benefits, part of a social insurance system, provide 65% of the reference salary for eligible individuals, with a minimum benefit equivalent to the legal monthly minimum wage.

Deposits in Cape Verde are protected up to CVE 1,000,000 (approximately USD 9,703) per depositor per institution by the statutory Deposit Guarantee Fund (FDG). The banking sector demonstrated strong stability in 2025, with a record solvency ratio of 24.8% and low non-performing loans. The Central Bank of Cabo Verde (BCV) provides robust supervision and regulation of the financial system.