The government of São Tomé e Príncipe ("STP") recently adopted two regulations that are intended to improve the conditions for investment in STP. These are:
- Decree-law No 19/2016, including the investment code for private investment (the "Investment Code"); and
- Decree-law No 15/2016, including the tax benefits code (the "Tax Benefits Code").
The new rules intend to make STP more attractive to foreign investors and create a regime that takes account of the needs of STP as well as an investor that wishes to invest in STP. The Tax Benefits Code for example promotes private investment in public infrastructure through tax reductions. Equally, investments in key sectors for the economy of STP (such as agriculture, tourism and international commerce) as well as investments in lesser developed parts of the country are incentivised. The new rules are already in force. This memorandum describes the main features of the two codes.