Country Guides Country Guide: Cape Verde

Date Published:

18/11/2009

Purchase Process

There are no restrictions to foreigners purchasing property in the Cape Verde islands.

GlobalPropertyGuide.com notes that when buying property in Cape Verde, foreigners must obtain a tax card from the Local Tax Office. A lawyer can be assigned to do this on behalf of the buyer, with a corresponding Power of Attorney, written in Portuguese. The lawyer also obtains the Land Registry Certificate, Tax Information Certificate, and the map showing the exact location of the property. In case the property is not registered, the lawyer acquires a Certidao pela Negativa and a Certidao Matricial Para o Efeito, both certificates confirming that the property is indeed not under anyone’s name. These certificates are needed to register the property. The lawyer can also sign the Deed of Conveyance and pay the taxes for the buyer.

Once a property has been chosen and price is agreed upon, a Promissory Buying and Selling Contract (Contrato Promessa de Compra e Venda) is signed, binding both parties to the agreement. The buyer also needs to pay a deposit of 10 to 30 per cent upon signing. The Deed of Conveyance, or the Escritura, is signed in the presence of a Notary Public to transfer the title to the buyer. This should be done within three to four weeks after the signing of the Promissory Buying and Selling Contract. The buyer needs to pay the remaining balance and the taxes.

Registration of the property is done at the Land Office and Land Tax Office. Be certain to engage the services of an English-speaking solicitor to manage the purchase process on your behalf. See the Law society website.

Purchase Costs

Budget 7 to 8 per cent for all purchase costs and fees. Based on a £100,000 property you should expect to pay the following:

Exit Costs

GlobalPropertyGuide.com notes capital gains derived from selling property connected with a business are subject to capital gains tax. In calculating the taxable capital gains, acquisition costs and incidental costs as well as improvement costs are deductible. Only 50 per cent of the resulting capital gains are subject to tax, levied at 20 per cent for non-residents in the Cape Verde.

Mortgage Status

International mortgage broker Conti provides loans up to 85 per cent of the property's value or purchase price, whichever is lower. The maximum term of any mortgage is 35 years; this varies on the type of loan. Repayment and Interest Only mortgages are available. The minimum loan is €50,000.