Finance

There are no restrictions on Foreigners buying property in Cape Verde and they are treated as a local and subject to the same laws. All properties sold at Vila Verde are 'Freehold'.

Mortgages for non-residents buying Vila Verde properties are now generally available and may be up to 80% of the property's purchase price depending on the Bank chosen. Buyers' of Vila Verde properties first two stage payments, prior to start of construction, are covered by a Bank Guarantee for 50% of the buyer's money invested with the developer.

Documents to be on hand before any sale of Cape Verdan property can take place are :

• For completed properties - Habitation permit /Land Registry Certificate/Official Map showing location of property/Tax information certificate.
• For property in a new development - Certidao Pela Negativa/ Tax certificate (these to be handled by purchaser's Lawyer)

Steps to be taken by a Buyer when purchasing a Cape Verdan property :

• 1.Power of Attorney - this is to be signed before a Notary after which it must be legalized by the Buyer's Cape Verde Honorary Consul. This PA will be in Portuguese but care must be taken by the buyer to ensure that an English translation is supplied as well.
• 2.Cape Verde Tax Card - to be obtained by foreigners wishing to buy Cape Verdan property. This is done through the Lawyer who holds the Power of Attorney.
• 3.Pay deposit to secure the property.
• 4.Sign a Promissory Contract of Purchase and Sale. This contract is in the form of a public deed which guarantees transparency, certainty and security to the transaction.
• 5.Buyer now pays Conveyancing Tax (3.0% of the Property's value) and then.
• 6. Signs the Deed of Conveyance (Escritura) to register the property in the their name.

After Notary has informed the local Land Registry and Municipal Authority of the transaction, registration in the Buyer's name takes place. The Buyer then :

• 7.Pays Notary Fees, Registration Fees and Stamp Duty (in total about 2.5% of the Property's value).
• 8.On possession of the property, Buyer signs for Utilities or has existing contracts for these transferred into their name.
• 9.It is also advisable for the Buyer to draw up a Will in Cape Verde even if the property is already included inthe Buyer's Will in their home country.

Annual Rates - these are at 3% on 25% of the property value every April or may be made in 2 instalments - April and September.

Capital Gains Tax :

• 1. On Plots for Construction - CGT is payable if the plot is sold for 100% more than it was purchased.
• 2. On other property transactions - CGT is payable if the property is sold for 30% more than it was purchased.
• 3. Capital Gains Tax (Mais Valia) on property is 3% based on 70% of the increase in value, excluding the allowances in(1) and (2) above.

Tax is payable within 30 days from registration of the Deeds together with submission of a Capital Gains Statement (Declaracao de Mais Valais) to the tax authorities.

Inheritance and Gift of PropertyTax : At a rate of 3% of the 'attributed' value of the property (it is important to seek the advice of a Cape Verdan lawyer for more specific information).