Country Guides Country Guide: Cape Verde

Date Published:

29/05/2008

Foreign nationals may freely purchase residential property in Cape Verde.

The same as you do when buying a property in Portugal (the Islands were formerly a Portuguese colony) you will need to obtain a NIF (número de indentificaçáo fiscal) or fiscal ID number, for tax purposes. The NIF should be applied for at a Cape Verdean tax office near to where you have bought and is a straightforward process, requiring the completion of a form and the presentation of two passport photographs and your passport. There is no charge for the NIF. Alternatively, ask your solicitor to apply for one on your behalf.

Adrian Lillywhite, managing director of Cape Verde Property Ltd, said: 'Buying property in Cape Verde is a simple process; it follows the Portuguese model and has some local specifics. The Cape Verde government welcomes the foreign investor, however as the market is in its infancy delays can occur. All property is sold freehold and no company formations are required to purchase.

The Buying Process

After finding a desired property, the buyer should appoint an independent lawyer, preferably one who is bilingual in Portuguese and English, who will conduct checks on the property. These will include ensuring that the full property title is available, that planning approval has been granted, that the developer has a building license and that there are no outstanding debts on the property. Buyers should always ask to see copies of these documents.

Once all checks have been made and the buyer has agreed to a purchase price, a promissory contract is signed and a 10-30 per cent deposit is paid. This deposit is non-refundable and secures the property. The final Deed of Conveyance, or the Escritura, has to be signed before a notary public in Cape Verde although a power of attorney can be signed. The Escritura gives the purchaser complete title to the property, and is registered with the Land Registry and Tax Office.

When ownership is transferred and registered with the Land Office and the tax and notary charge is paid, the sale is complete. This should only be signed if a buyer is 100 per cent happy with their property. A local tax card is also necessary and should be obtained from the local tax office.

Purchase Taxes, Fees and Mortgages

Lillywhite said: 'It is recommended that the buyer budgets an additional 5.5 - eight per cent of the property purchase price for the payment of notary fees, property transfer taxes and legal fees. The majority of property bought in Cape Verde is through ‘cash’ purchases; mortgages are available for non-residents, however interest rates are currently higher than those commonly found in the UK.'

The views represented in this article are those of the author and not of Channel 4. The purpose of the article is to provide general information only and does not constitute financial, investment, legal or other advice.You should not rely on any information provided in this article and you should always seek out independent professional advice relevant to your own particular circumstances. All prices & figures correct as of late 2008. Exchange rates correct as of March 2009