Employer of Record (EOR)
Fastest to start An EOR is the legal employer in Cape Verde on your behalf โ it runs compliant payroll, benefits, and contracts while the person works for you day-to-day. Typical platform pricing is a flat monthly fee per employee. This is the standard route when you don't have an entity in Cape Verde and want a full employee rather than a contractor.
Best for: Full-time hires, no local entity, started in days not months
Independent contractor
Most flexible The person invoices you as a self-employed contractor. Lighter and cheaper to set up, but misclassification โ treating someone like an employee while paying them as a contractor โ carries real penalties in most jurisdictions. The longer and more exclusive the engagement, the weaker the contractor argument gets.
Best for: Project work, part-time engagements, genuinely independent professionals
Local entity
Long-term scale Incorporating in Cape Verde gives you full control and is usually cheapest per-employee at scale, but expect months of setup, local accounting, and ongoing filings. Rarely worth it below roughly five hires in one country.
Best for: Committed long-term presence, 5+ employees in-country