Financial Crime World

São Tomé and Principe: Financial Regulatory Body Takes Center Stage

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The National Bank of São Tomé and Principe has been instrumental in shaping the country’s economic landscape. With a streamlined procedure for company incorporation and registration of branches, foreign investors are flocking to the island nation.

Favorable Business Environment

  • Swift procedure for company incorporation and registration of branches
  • Measures in place to ensure fair treatment of investors and protection against private ownership measures
  • Foreign exchange regime regulates commercial and financial operations affecting balance of payments

Tax Incentives for Foreign Investors

The government has introduced tax benefits for foreign investors, including:

  • Exemption from income tax
  • Exemption from social security contributions (according to the Investment Code Regulation)

Additionally, São Tomé and Principe has signed an agreement on double taxation with Portugal, providing for the avoidance of double taxation on income earned by individuals or companies.

Challenges and Opportunities

Despite challenges in repatriating profits and dividends due to financial and exchange crises, São Tomé and Principe remains an attractive destination for foreign investment. The government’s commitment to promoting economic growth and stability is expected to continue, providing opportunities for businesses and individuals alike.

  • Regulations on alcohol advertising have been implemented to protect minors from harmful influences
    • Advertising Regulations for Alcoholic Beverages prohibit advertising that encourages excessive consumption or promotes negative social behaviors
  • Taxation system in place, with individual income tax and corporate income tax rates ranging from 7.5% to 25%
    • Value-added tax (VAT) applicable, with a rate of up to 15%

As São Tomé and Principe navigates its economic challenges, investors will be keeping a close eye on developments. With its favorable business environment and commitment to promoting growth, the country remains an attractive destination for those looking to expand their horizons.