So You Want to Buy Property in Cape Verde?

Cape Verde has been much talked about in terms of it being a hotspot for property investment for the past couple of years - and even before that it was on many people’s radar as somewhere with immense potential.  As soon as it was possible to fly directly to the Atlantic islands from the UK of course interest surged!

So you want to buy property in Cape Verde now too do you?  Okay, no problem, there’s plenty of stock available but is it a good location to invest in and how does the property buying process work in Cape Verde?  Read on to find out.

As Cape Verde develops its tourism based economy, chances are that it will become a good location for a long term property investment.  Demand should increase for holiday rental homes and as the infrastructure and appeal of the islands increases so property prices should rise as well.  At the moment the prices for properties in Cape Verde are below those in many Mediterranean locations and the Balearics as well of course – but many analysts believe the property market could become as successful as that enjoyed by the Canary Islands.

So, you want to buy a property in Cape Verde now that you know it could be a long term investment opportunity but you want to know how to go about it?  Well, the purchase process is quite straightforward and similar to Portugal’s.  First you have to get your fiscal number from the tax office…your agent or solicitor can point you in the right direction…then you move on to getting contracts agreed.

You have to have your own solicitor representing you and once your offer has been accepted or a purchase price agreed upon you will sign a Contrato de Promessa de Compre e Venda or Promissory Contract and pay between a 10 and a 30% deposit as well as the transfer tax or IUP tax.

Your payment of a deposit secures the property which is good – but it is non-refundable if you change your mind which is not so good.  So before signing this preliminary contract you really need to be sure you want to go ahead and commit, and what’s more, your solicitor has to check out the title of the property, that the vendor has the right to sell it and that there are no claims or debts outstanding against the real estate before you sign the initial contract to purchase.

Between signing the promissory and the final contract your solicitor will have to complete some paperwork relating to registration and taxation and then you will sign the final contract or Escritura and pay the balance of the purchase price (unless buying off plan and paying in stages), final taxes and the fees for the notary’s services.  Fees for buying can come up to as much as 13% of the property’s purchase price if you also include in the solicitor’s fees, estate agent’s fees, sales tax, conveyance tax, registration fees etc.

Finally, once you’ve signed the Escritura in front of the notary your solicitor will register it with the Land Registry and the Tax Office as well and the home is yours!