LEGISLATION

There are three investment schemes:

1. Simplified regime
2. General regime
3. Special regime

Simplified regime

The investment whose overall value is between 50,000 Euros (fifty thousand euros) and 249,999 Euros (two hundred and forty-nine thousand nine hundred and ninety-nine Euros) is included in the simplified regime.

General regime

Investment is included in the general regime, whose global amount is between the values equivalent to 250,000.00 (Two hundred and fifty thousand Euros) and 4,999,999 (four million nine hundred and ninety-nine thousand, nine hundred and ninety-nine euros).

Special regime

The investment whose total amount is equal to or greater than the amount equivalent to 5,000,000.00 (five million euros) is included in the special regime.

Investment projects whose promoters meet the following requirements may benefit from the incentives provided for in the Tax Benefits Code:

• Have at least twenty percent (20%) of available capital;
• Demonstrate that you have a stable economic and financial situation for carrying out the project;
• Present a negative certificate of debts with the State and Social Security;
• Present the feasibility study of the project acceptable to the state, which demonstrates the creation of jobs of a permanent nature and aimed at the occupation of national labor and contributes within the scope of social responsibility;
• Present the report of analysis and demonstration of the economic impact of the investment for the country.

Investments eligible under the Investment Code benefit from:

• Total exemption from payment of import duties on goods and equipment destined to launch new activities or expand any ongoing activity;
• Income tax benefits, that is, payment of a corporate income tax rate (IRC) of only 10%;
• Accelerated amortization and reintegration – Accelerated amortization is allowed for investments made in the tourism, education, health, new technologies sector, as well as the entire export-oriented sector;
• Deduction from the tax base for the purpose of calculating IRC up to a maximum limit of 50%, of the amount invested in specialized equipment, during the first five years from the date of commencement of activity;
• Deduction from the tax base for the purpose of calculating the IRS up to a maximum limit of 50%, of the amount invested in specialized equipment, during the first five years from the date of commencement of activity;
• Deduction from the tax base for the purpose of calculating the IRC, of the amount of investment costs made with the professional training of Sao Tome workers.

Legislation in force for investments and partnerships in São Tomé and Príncipe. Documentation available for download (in portuguese):

• Decree-Law 19/2016 – Investment Code;
• Decree 33.99 – Code of Free and Offshore Activities;
• Decree-Law nº 15/2016 – Code of Benefits and Tax Incentives;
• Law nº 06/2018 – Law on Public-Private Partnerships;
• São Tome and Príncipe National Sustainable Development Plan 2020-2024.