São Tomé and Príncipe: African Island Nation with New CBI Program

São Tomé and Príncipe is a small island nation located in the Gulf of Guinea off the western coast of Central Africa. Comprising two main islands, this Portuguese-speaking country offers a civil law legal system and has recently launched a Citizenship by Investment program to attract foreign investment.

Living in São Tomé and Príncipe

With a population of approximately 220,000, São Tomé and Príncipe is one of Africa's smallest nations. The official language is Portuguese, with local creole languages also spoken. The tropical equatorial climate brings warm temperatures year-round with significant rainfall.

The capital, São Tomé, offers the main business and government services. Infrastructure is developing, with improvements in telecommunications and transportation. Healthcare facilities are limited, with serious medical cases often requiring evacuation to Portugal or other countries.

The cost of living is relatively low by international standards, though imported goods carry premium prices. Safety is generally good, with low crime rates. The islands offer natural beauty with beaches, rainforests, and volcanic landscapes.

Doing Business in São Tomé and Príncipe

São Tomé and Príncipe operates under a Portuguese-influenced civil law system. The corporate tax rate is 25%, with a 15% VAT implemented in June 2023. There is no capital gains tax, which may benefit certain investment structures.

The local currency is the São Tomé and Príncipe Dobra (STN). Some currency controls may apply for larger transactions. Portuguese remains the business language, which facilitates connections with Portugal, Brazil, and other Lusophone countries.

Company Formation and Registration

Business registration is handled through the One-Stop Shop (Guiché Único - GUE) under the Agency for Promotion of Commerce and Investment (APCI). The streamlined process can be completed in 1-5 days normally, with 24-hour expedited processing available for an additional fee.

The main business structures are:

• SARL: For larger enterprises, requiring minimum 5 shareholders and approximately EUR 14,000 minimum capital
• Limitada: Simpler structure with minimum 2 members

The Investment Code (Decree-Law No. 19/2016) governs foreign investment, with reforms emphasizing equal treatment for foreign and local investors.

Citizenship by Investment Program (August 2025)

São Tomé and Príncipe officially launched its Citizenship by Investment program on August 1, 2025, under Decreto-Lei n.º 07/2025. The program offers citizenship through an irrevocable contribution to the National Transformation Fund:

• Single applicant: Starting from USD 90,000
• Family applications: Additional fees apply
• Processing: Typically 3-6 months

The program aims to fund national projects in energy, healthcare, education, infrastructure, and ecotourism sectors.

Investment Incentives

The Fiscal Benefits and Incentives Code (2016) and the Temporary Law on Investment Incentives (Law 9/2023) provide various benefits:

• Tourism: Up to 50% corporate tax reduction for 5 years; customs duty exemptions
• Oil & Energy: Negotiated tax incentives for exploration investments
• Free Trade Zones: Complete import duty exemptions, VAT exemptions on exports
• Priority sectors: Agriculture, infrastructure, ecotourism receive preferential treatment

License Frameworks

Crypto License

São Tomé and Príncipe does not have cryptocurrency regulations or a licensing framework. The limited financial infrastructure makes crypto operations impractical. Entrepreneurs seeking crypto licensing should consider more developed jurisdictions.

Gambling License

Gambling regulation is limited. Casino operations may be permitted through government authorization on a case-by-case basis, primarily for tourism development. Online gambling is not formally regulated. The market is very limited.

Financial Services

The Central Bank of São Tomé and Príncipe (Banco Central) regulates banking and financial services. Bank licenses require minimum capital of approximately USD 1 million. The financial sector is small, with limited options for financial services licensing.

Government Initiatives (2025)

Prime Minister Américo Ramos, inaugurated in January 2025, has prioritized improving the investment climate. Key developments include:

• Two-year government agenda approved February 2025
• First arbitration center established (October 2023) for investment dispute resolution
• Increased scrutiny over land concessions (April 2025)

Considerations

Banking infrastructure is limited with minimal international banking access. The small domestic market limits local business opportunities. Geographic isolation increases operational costs. Professional services availability is limited. Bureaucratic processes may be slow despite recent reforms.

This jurisdiction suits investors seeking Portuguese-speaking African presence, those interested in the new CBI program, tourism and hospitality ventures, or companies targeting Portuguese-speaking markets from Africa.