Lawyer Monthly Magazine - September 2021 Edition

SEP 2021 | WWW.LAWYER-MONTHLY.COM - Tax Benefits Code - Law No. -102 VIII/2016; - Law No. 38/2013, of 2 October), which creates the Cape Verde International Business Center (CIN); - Law No. 73/IX/2020, of 2 March, which approves the regime for the realization of direct investment made in Cape Verde by emigrants. In addition to these legislations in the scope of foreign investment, it is also possible to point out others that regulate incentives of specific sectors, such as: Industry - Legislative Decree No. 13/2010 of 8 November, which defines the objectives of the country’s industrial policy and establishes the principles, means and instruments essential to its pursuit. Tourism - Decree-Law nº 22/2020, which establishes the regime of the status of Tourist Utility and defines the criteria and requirements for its attribution, revocation, expiry and renewal. Financial market - Decree-LawNo. 12/2005 of 7 February, which regulates the right to establish international financial institutions in Cape Verde, their functioning and supervision. In general terms, how important is foreign investment to the economy of Cape Verde? The flows generated by the Cape Verdean economy have never been considered sufficient to finance its development, due to various constraints such as the lack of natural resources, the trade balance deficit and the size and division of the territory. Therefore, foreign capital has become a strategic resource in the development of Cape Verde as a way of ending some deficits in the economy. Thus, foreign investment is of paramount importance to the economy of Cape Verde. It increases Cape Verde’s competitive capacity and, by extension, its relevance in the international economy; it increases employment in general terms, as well as creating new types of employment and new jobs; it stimulates employment in other sectors of the economy and therefore improves wage and working conditions. Foreign investment enables partnerships between foreign and national companies, allowing the latter to expand their business. It also increases state revenue through tax contributions paid by foreign companies. MY LEGAL LIFE - CARLA MONTEIRO How Is Foreign Investment Handled in Cape Verde? As a nation, Cape Verde’s economy is dependent in large part upon foreign investment. Why is this, and how has the COVID-19 pandemic shaken up the status quo? We speak with Carla Monteiro to find out more about the current state of foreign investment in Cape Verde and its importance to the country as a whole. “ The flows generated by the Cape Verdean economy have never been considered sufficient to finance its development. ” Which key regulations govern foreign investment in the nation? The key regulations are as follows: National regulations - Cape Verde Investment Law – Law no. 13/VIII/2012 amended by Decree Law no. 34/2013 of 24 September, whichestablishes thegeneral bases for carrying out investments in Cape Verde; - Foreign Investor Statute - Law No. 89 IV/93, of 13 December; 19