Invest in Properties in Cape Verde

According to the UK Channel 4 TV’s programme, "A Place In The Sun", Cape Verde has so much going for it as a tourist spot that was declared the top property investment location of 2005/2006.

With massive investment coming from all round the world, Cape Verde is expected to be a major holiday destination in the future. In the last few years there have been many initiatives to promote the sale of properties to international buyers. 

CAPE VERDE IS THE NEW HOLIDAY DESTINATION

Compared to many European destinations, property entry prices here are very reasonable, and high capital growth and rental potential in the mid term are expected.

Many natural and economic factors will contribute to make Cape Verde the top tourist location in Africa: 

• Year-round warm
• Sunny weather
• Beautiful beaches, crystal-clear sea and fantastic hiking spots
• Flight times of only 5.5 hours from the UK with little jet-lag, if non-existent
• New international airports
• Strong possibility of inclusion in the European Union
• Multi-party stable democracy, supportive of foreign direct investments

Sal and Boavista are the main areas where people are buying. Santiago, Maio and Sao Vicente are also coming into the market very strongly with the launch of quality developments. Property prices for Cape Verde start from £30,000.

BUYING OFF-PLAN

With all such ventures you must do as much research as possible. The usual rules of thumb apply when buying off-plan properties here: check the land is registered to the developer, and that they have a history of building quality properties.

Generally, when you buy off-plan, there is a payment schedule to follow. Usually £2,000 is the amount required as a deposit, then you are required to make subsequents payments coinciding with the different stages of construction, i.e.: 15% of the total price with the exchange of papers (sale agreement), 20% at the commencement of construction, 30% at roof cover, 35% on completion when signing the deed.

Please note This information is to be considered as a guidance only, property developers payment schedules may differ from one other in terms of percentages to outlay and at which stages of construction.

Legal Information

Generally, contracts are in English/Portuguese. Property purchase is subject to the following taxes: I.U.P. 3% of the property value and is paid prior to the signing of the deed of purchase and sale, notary, registration fees and stamp duty are usually around 3% of the property value, annual tax varies with location and could be 3-5% plus 0.075% on the value of the property and is paid annually every April (or in two instalments in April and September). 

INSPECTION TRIPS

Property inspection trips that usually lasts 4 days, are also offered by the various property developers and firms. They offer the opportunity to become familiar with the area in which you are going to purchase and once a reservation for your chosen property is placed, some will reimburse your trip expenses. Inspection trips start from around £350.