Real Estate Investment Guide in Cabo Verde: Opportunity and Prestige

Investing in real estate in Cape Verde is an excellent opportunity for investors seeking diversification and security in emerging markets. The country offers a clear and secure legal environment, with no restrictions for foreign buyers, making property acquisition an accessible and efficient option.

The national currency, the Cape Verdean Escudo, is pegged to the euro at a rate of 110.265, which facilitates property transactions, with all properties priced in euros. For investors from the United Kingdom, it is also possible to fix prices in pounds sterling, avoiding currency fluctuations and unexpected costs.

Legal Security and Purchase Process

The notarial system in Cape Verde ensures a high level of legal security for real estate transactions. The process is transparent and can be supported by specialized local lawyers who ensure the authenticity of documentation and compliance with national laws.

The use of the digital CIP system (Property and Real Estate Registry) has made the purchasing process more efficient, providing greater security and reliability in property registration.

Required Documents to Acquire Property in Cabo Verde

First, it is necessary to obtain a Cape Verdean Tax Identification Number (NIF). This can be obtained at the local tax office through a quick and free process. It can also be requested via the Cape Verde Consular Portal.

After obtaining the NIF, it is possible to open a bank account. Foreign buyers must present a valid passport from their country of origin.

At the time of signing the deed, it is sufficient to present the Cape Verde NIF and passport, or a national ID card in the case of local citizens.

How the Property Purchase Process Works in Cabo Verde

1. Property Reservation

When a buyer selects a property and reaches an agreement with the seller, a reservation fee is required. This typically ranges 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 the reservation, a local lawyer will verify the authenticity of the property documentation, as well as check for any debts or legal issues.
Legal fees typically range between €1,250 and €2,000 and cover the process from reservation to final deed.

3. Power of Attorney

To allow the lawyer to act on behalf of the buyer, a Power of Attorney is required. This can be arranged under the Hague Convention or directly in Cape Verde.
Costs generally range between €50 and €100.

4. Acquisition Costs

When purchasing a property, the buyer must pay a 1% tax on the registered value or the sale price (whichever is higher), in addition to administrative costs such as notary fees (€180) and property registration (€220), totaling approximately €400.
Additional costs may include translations and banking fees.

5. Final Transaction and Deed

The final payment is typically made directly to the seller or their legal representative, formalized through a promissory contract.
Payment can be made via a certified cheque from a Cape Verdean bank or by bank transfer.

Real Estate Financing

It is possible for foreign buyers to obtain bank financing in Cape Verde, with average interest rates ranging between 6% and 9%. Financing can reach 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 within a resort or condominium, fees vary depending on the amenities.
  Example: a 2-bedroom apartment may have annual fees of around €2,000, while smaller developments may range between €600 and €1,000.
• Municipal Property Tax (IUP):
  The annual property tax varies according to the registered property value.
  For a €100,000 property, the annual tax is approximately €400, payable in two installments.
• Utilities:
  Water, electricity, and gas costs depend on consumption.

Conclusion

Cape Verde represents a unique real estate investment opportunity. With a growing market, expanding infrastructure, and a strategic location, the country offers a secure and profitable environment for investors from around the world. The purchasing 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 a chance to enter a market with strong medium- and long-term appreciation and profitability potential. If you are looking for an effective way to expand your investment portfolio, Cabo Verde deserves your attention.