Can Foreigners Buy Property in Cape Verde?
Cape Verde, with its breathtaking beaches, welcoming culture, and growing tourism industry, is becoming an increasingly popular destination for international property buyers. But can foreigners buy property in Cape Verde? The answer is a definite yes. In fact, Cape Verde actively encourages foreign investment in its real estate market, offering a straightforward process for purchasing property. Here’s what you need to know.
Legal Framework for Foreign Buyers
In Cape Verde, foreigners enjoy the same property ownership rights as local citizens, with no restrictions on purchasing residential or commercial real estate, as well as land for development. This makes the market accessible to investors from all over the world. The legal system, based on Portuguese civil law, ensures a well-regulated and transparent framework, giving buyers the confidence to invest in a secure environment. Every real estate transaction must be registered with the local land registry (Registo Predial), a crucial step that confirms legal ownership and protects the buyer from potential disputes, further strengthening investment security.
Steps to Buying Property in Cape Verde
- Choosing the Property
Foreign buyers can explore a wide range of options, from apartments and villas to plots of land. Popular locations include Sal, Boa Vista, and São Vicente. - Hiring a Local Lawyer
Although not mandatory, it is highly recommended to hire a local lawyer who can guide you through the legal process, review contracts, and ensure all documents are in order. - Signing a Preliminary Contract
Once a property is selected, a preliminary sale agreement (Contrato Promessa de Compra e Venda) is typically signed, along with a deposit payment, usually around 10-30% of the purchase price. - Completing the Purchase
The final contract (Escritura Pública) is signed in front of a notary, and the remaining balance is paid. The property is then officially registered in your name at the local land registry.
Costs Associated with Buying Property
In addition to the purchase price, buyers should consider the following expenses:
- Transfer Tax (Imposto de Transmissão Onerosa): Approximately 3% of the property’s value.
- Notary Fees: Around 1-2% of the sale price.
- Registration Fees: About 2% of the property’s value.
- Legal Fees: Varies depending on the lawyer’s services.
Benefits of Buying Property in Cape Verde
Purchasing property in Cape Verde offers numerous advantages. The real estate market is continuously growing, fueled by tourism and international interest, creating excellent investment opportunities with strong potential for property appreciation. Properties in high-demand tourist areas can generate attractive returns through short-term rentals, especially during peak seasons, making them a great source of income.
The country’s political stability and investment-friendly environment make it a secure choice for international buyers, ensuring reliable conditions for those looking to invest in a stable market. Another significant advantage is the absence of inheritance tax, which is particularly appealing for those wanting to preserve and pass down their assets to future generations without additional financial burdens.
