How to Buy in Cape Verde

The Process of Acquiring Real Estate in Cape Verde

Acquiring real estate in Cape Verde is an excellent opportunity for investors looking for diversification and security in emerging markets. The country offers a clear and secure legal environment with no restrictions for foreigners, which makes property acquisition an affordable and efficient option.

The national currency, the Cape Verdean Escudo, is attached to the euro at the rate of 110.265, which facilitates the negotiation of real estate, with all properties being quoted in euros. For UK investors, it is possible to lock in prices in British pounds, avoiding currency fluctuations and unforeseen costs.

Legal Security and Purchasing Process

The notary system in Cape Verde guarantees a high level of legal certainty for the purchase of real estate. The process is transparent, you can have the support of specialized local lawyers who ensure the veracity of the documentation and compliance with the laws of the country.

The use of the CIP (Real Estate and Property Registry) digital system has made the purchase process more agile, offering more security and efficiency in the registration of properties.

Documents Required to Purchase a Property in Cape Verde

First of all, you need to have a Cape Verdean NIF, NIF is the acronym for Tax Identification Number. Obtaining a NIF is done at the tax office, a fast and cost-free process. You can also go to the Cape Verde Consular Portal and apply for a NIF online.

After obtaining a NIF you can open a bank account, being a foreign citizen you must present the passport of your country of origin.

At the time of the deed, just present the Cape Verde NIF and passport, or Identity Card if you are a national citizen.

How Buying Real Estate Works in Cape Verde

1. Property Reservation:

1. When the buyer finds a property and reaches an agreement with the seller, it is necessary to pay a booking fee that can vary between 3,000 euros or 5% of the value of the property, depending on the case. This payment ensures the agreed price and removes the property from the market.
1. Legal Verification:

After booking, a local lawyer will be able to verify the authenticity of the property's documentation, as well as the existence of any debts or legal issues. The average cost of legal fees is between 800 and 1,000 euros and accompanies the client from booking to deed.

1. Proxy:

In order for the lawyer to act on behalf of the buyer, a Power of Attorney will be required, which can be carried out in accordance with the rules of the Hague Convention or directly in Cape Verde. The cost for the power of attorney is between 25 and 100 euros.

1. Acquisition Fees:

When purchasing a property, the buyer will be required to pay a fee of 1.5% on the registered value of the property or sale value if it is higher, in addition to administrative costs such as notary fees (19,780 CVE) and property registration (24,150 CVE) that add up to around 400 euros. Other costs may include translations and bank fees, as appropriate.

1. Final Transactions and Deed:

The final payment of the property is usually made directly to the seller or their legal representative, with the process formalized through a promissory contract. Payment will be made by certified cheque from a Cape Verdean Bank or by advance transfer

Real Estate Financing

Obtain bank financing for foreigners in Cape Verde, with average interest rates between 6 and 8% and a loan of 50 to 70% of the value of the property.  

Ongoing Costs of Ownership

After purchasing the property, the owner should be aware of the following annual costs:

• Condominium Fees: If the property is located in a resort or condominium, maintenance fees may vary depending on the amenities of the property. For example, a 2-bedroom apartment in a resort may have an annual condominium fee of around €2,000, while in a smaller condo, the fees can range between €600 and €1,000.
• Municipal Tax (IUP): The Single Property Tax (IUP) is charged annually, with amounts varying according to the registered value of the property. For properties worth 100,000 euros, the annual tax is around 400 euros, paid in two semi-annual installments.
• Utilities: Water, electricity, and gas costs are based on consumption, with values that vary according to use.

Conclusion

Cape Verde represents a unique real estate investment opportunity. With a growing market, expanding infrastructure, and a strategic location, the country offers a safe and profitable environment for investors from different parts of the world. The purchase process is clear and accessible, with the guarantee of a reliable and transparent legal system.

Investing in Cape Verde is not only an opportunity for financial diversification, but also to enter a market with great potential for appreciation and profitability in the medium and long term. If you are looking for an effective way to expand your investment portfolio, Cape Verde deserves your attention.