Spain and Cape Verde signed a Double Taxation Agreement (DTA) in Madrid on June 5th by Cape Verdes Minister of Foreign Affairs Mr Luis Filipe Tavares and Spanish Finance Minister Mr Cristóbal Montoro.
The agreement hopes to further for the effective contribution for the development of transparency and improved relations between Spain and Cape Verde with regards to commercial and finance matters.
The treaty follows the OECD Model Convention and applies to income taxes and the residents of both contracting jurisdictions. It sets the criteria for the taxation of real estate income, business profits, maritime and air transport and associated companies, dividends, royalties, and more.
The agreement will enter into force three months after both parties have completed the ratification procedures and sent notification.