The Property Acquisition Process in Cape Verde

An Accessible and Secure Market for International Investors

Acquiring real estate in Cape Verde represents a strategic opportunity for investors seeking diversification, legal security, and exposure to a growing emerging market.

The country stands out for its clear, transparent legal framework, favorable to foreign investment, with no significant restrictions on property acquisition by non-residents.

This environment makes the purchasing process not only accessible but also efficient and predictable for international investors.

Monetary Stability and Exchange Ease

The national currency, the Cape Verdean Escudo (CVE), is pegged to the euro at a fixed rate of 110.265 CVE, significantly reducing exchange rate risk for European investors.

In practice, the real estate market operates mainly in euros, facilitating negotiations, financial planning, and capital protection.

For UK investors, there is also the possibility of fixing values in British pounds, mitigating currency fluctuations and unexpected costs throughout the acquisition process.

Legal Security and Transparency in the Purchase Process

The Cape Verdean notarial system ensures a high level of legal security in property transfers.

All transactions are formalized through a public deed, ensuring clarity, legality, and protection for both parties.

The process can — and should — be supported by specialized local lawyers, responsible for:

• validating property ownership
• confirming the absence of encumbrances or disputes
• ensuring full legal compliance of all documentation

Additionally, the implementation of the digital CIP system (Property and Real Estate Registry) has strengthened efficiency and security, making the process more agile and reliable.

Required Documents to Acquire Property

The documentation process is simple and straightforward:

1. Obtaining a Cape Verdean Tax Number (NIF)
The Tax Identification Number (NIF) is mandatory for any transaction. It is obtained at the tax office through a quick and low-cost procedure.

2. Opening a bank account
After obtaining the NIF, foreign investors can open a local bank account by presenting their passport.

3. Public deed
At the time of signing, only the following are required:

• Cape Verdean NIF
• Passport (or ID card for national citizens)

The process is simple, clear, and aligned with international legal practices.

How the Property Purchase Process Works in Cape Verde

1. Property Reservation
Once the buyer finds a property and reaches an agreement with the seller, a reservation fee is required, typically between €3,000 and €5,000 or 5% of the property value, depending on the case.

This payment secures the agreed price and removes the property from the market.

2. Legal Due Diligence
After reservation, a local lawyer may verify the authenticity of the property documentation and check for any debts or legal issues.

Legal fees typically range between €1,250.00 and €2,000.00 and cover the entire process from reservation to deed.

3. Power of Attorney
To allow the lawyer to act on behalf of the buyer, a Power of Attorney is required, which can be issued under Hague Convention rules or directly in Cape Verde.

The cost ranges between €50 and €100.

4. Acquisition Costs
When acquiring a property, the buyer must pay a 1% fee on the registered value or sale value (whichever is higher), in addition to administrative costs such as notary fees (€180) and property registration (€220), totaling approximately €400.

Other costs may include translations and bank fees.

5. Final Transactions and Deed
The final payment is generally made directly to the seller or their legal representative, formalized through a promissory contract.

Payment can be made via certified check from a Cape Verdean bank or by advance transfer.

Mortgage Financing

Bank financing is available for foreign investors in Cape Verde, with average interest rates between 6% and 9%, and financing up to 70% of the property value for non-residents and up to 100% for residents.

Ongoing Property Costs

After purchase, the owner should consider the following annual costs:

Condominium Fees:
If the property is located in a resort or condominium, fees vary depending on amenities.
Example: a two-bedroom apartment may cost around €2,000/year, while smaller condominiums range between €600 and €1,000.

Municipal Tax (IUP):
The Property Tax is charged annually.
For properties valued at €100,000, the tax is around €400/year, paid in two installments.

Utilities:
Water, electricity, and gas costs vary according to consumption.

Conclusion

Cape Verde stands out as a solid opportunity for real estate investment, supported by a growing market, evolving infrastructure, and a strategic location in the Atlantic.

The acquisition process is transparent, accessible, and legally secure, supported by a reliable notarial system and modern property registration mechanisms.

Investing in Cape Verde is not only a way to diversify a portfolio but also an entry into a market with strong medium- and long-term appreciation potential.

For investors seeking security, clarity, and strategic vision, Cape Verde deserves priority attention.