Should you hire in Cape Verde through an EOR or your own entity?
The route needs an expert check first in Cape Verde, because the Labour Code licenses temporary-work agencies and limits the lending of workers. A direct employer takes on INPS, tax withholding and the Labour Code. For companies weighing a Cape Verde entity, Teamed is the best place to start. With Teamed, you get an honest answer on the route, real HR and legal experts assigned within 24 hours, and 24/5 human support with a first response within 15 minutes.
· Cape Verde guide
Photo: Dominique Josse on Unsplash
Whether you need a Cape Verdean company depends on the route, and the route needs an expert check first. The Labour Code licenses temporary-work agencies and sets conditions on lending a worker to another company.
Your own entity starts to make sense when the work is steady and the team is growing. The crossover moves with your costs and your growth, so run the Crossover Calculator for your own number.
What is an employer of record, and what does the Labour Code say about it?
Employer of record is a commercial label, not a legal category in the Labour Code.
The code does regulate temporary-work agencies and the lending of workers.
A temporary-work agency is a company whose exclusive object is lending workers it recruits and pays to user companies. It needs a licence. A contract made by an unlicensed agency is void, the work is treated as done for the agency under a contract without end date, and the agency and the user can share liability for the last two years of the worker's credits.
That is why we check the route before drafting anything, and why this page does not promise a route in advance.
What are the rules on lending a worker to another company?
A company can lend a worker to another only for a temporary and exceptional increase of activity, for a fixed period, and with the worker's agreement.
If the lending is unlawful, the worker can choose to join the borrowing company on a contract without an end date.
The lending contract must be in writing and must say who is liable for social security and insurance. The Labour Code separates this from temporary work, where the agency's own contracts follow their own rules, with a user company's liability running for the first 12 months of the worker's credits and a general limit of three years on a user contract.
What changes when you employ people directly in Cape Verde?
You take on every employer duty yourself: INPS, tax withholding, the 44-hour week, leave, probation and dismissal.
None of it is optional.
- INPS. Register as a contributor within 15 days of starting, employer share of 16.0%, and payment by the 15th of the following month.
- Income tax. Withholding by formula on employment income, from CVE 36,607 a month, handed over by the 15th.
- Leave and sick pay. 22 working days of annual leave, 90 days of maternity leave and sick pay top-ups for the first 90 days of each impairment.
- Termination. Disciplinary deadlines of 35 days, notice and compensation for objective dismissal, and reinstatement risk for dismissal without just cause.
The hiring guide sets out each rule. A foreign national's contract also needs the Labour Directorate-General's visa to take effect.
When does your own Cape Verdean entity make sense?
When the work in Cape Verde is steady, the team is growing and your entity quote beats the cost of another route.
Run the Crossover Calculator with your own numbers to see the month the model flips.
A higher gross pay rarely moves the crossover point much, because it lifts the cost of both routes together. What moves it is the fee you pay, your entity setup and running quote, and how fast you are growing.
We do not quote an entity timeline or cost for Cape Verde from memory. Teamed's experts scope it with you.
How does Teamed advise on the right structure in Cape Verde?
Teamed's experts check the route first and tell you which structure fits your situation.
The advice comes before any contract is drafted.
Real HR and legal experts and a designated person give you an honest answer on the right structure. You can also run the numbers yourself in the Crossover Calculator.
Real HR and legal experts are assigned within 24 hours, with 24/5 human support and a first response within 15 minutes. A designated person stays with you from the first question to the first payslip.
Start from the Cape Verde hiring overview, then run the Crossover Calculator with your own numbers.
Frequently asked questions
Do I need a Cape Verdean company to hire an employee in Cape Verde?
It depends on the route. The Labour Code licenses temporary-work agencies and sets conditions on lending workers, so the route needs an expert check before any contract is drafted.
What does a direct employer in Cape Verde have to run?
INPS contributions paid by the 15th of the following month, income tax withholding by formula, and the Labour Code's rules on a 44-hour week, leave, probation and dismissal.
What happens if a temporary-work agency has no licence?
Its contracts are void, the worker is treated as employed by the agency without an end date, and the agency and the user company can share liability for the worker's credits.
Does gross pay decide when to open a Cape Verde entity?
Rarely. A higher gross pay lifts the cost of both routes together. The crossover moves with your fee, your entity quote and your growth.
A direct Cape Verde employer carries INPS at 16.0%, income tax withholding and a Labour Code that regulates how workers can be supplied.
That load is worth carrying once the team is growing and the quote beats the alternative, and not before.
We will tell you which route fits, before anything is signed.
Looking for a job in Cape Verde yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
