buying property in cape verde

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Buying Property in Cape Verde

Buying Cape Verde property in Sal Island, Santa Maria, Santiago ,Boa Vista, Brava, Fogo, Maio, Santo Antão, Sao Nicolau, Sao Vicente.

Properties in Cape Verde provide investors with the option of buying a piece of real estate in a unique environment, one that has been called 'Caribbean like' but closer to home and not as expensive. The Cape Verde real estate market is a new property investment market for those that appreciate island and resort real estate.

The beautiful Cape Verde islands (Cabo Verde) are located an hour south of the Canaries, and consist of 10 islands in an archipelago. Until recently its beauty has been a well kept secret, but with its endless white beaches, crystal clear water and mountainous scenery, it is becoming well known throughout the world.

With sunshine and a tropical climate year round, Cape Verde is set to become a popular destination for UK, Irish, and European holidaymakers especially the Portuguese and Spanish within the next decade. The tourism industry had a staggering growth with 25% last year and is expected to increase fourfold within the next few years.

With its 12 month tourist season, the opening of four international airports, a stable political climate and limited space for construction, it has now become one of the top spots for investors all around the world. It was featured on Channel Four's - A place in the Sun - in their top 10 places in the world for investments .

Often referred to as the "New Canary Islands", Cape Verde offers stunning beach front properties at almost unheard of prices. With the recent opening of new low cost flights direct to Cape Verde from many European countries including the United Kingdom

The increasing tourist numbers achieved and also predicted are sure to make Cape Verde and its associated islands a must visit destination for many, which in turn makes for a lucrative buy-to-let market

Attractively priced beachfront property can be found on the islands of Boa Vista, Brava, Fogo, Maio, Sal, Santiago, Santo Antao, Sao Nicolau and Sao Vicente.

Documentation for buying in the Cape Verde islands

Your lawyer will need to obtain for you the following documents

• Certidao do Registo Predial â€" which is the Land Registry Certificate
• Planta de Localizao â€" which is the official map that shows the exact location of the property
• Certidao Matricial â€" which is the Tax information Certificate

Should the property not be registered, your lawyer will need to obtain a Certidao pe la Negativa, which confirms that the property is not registered in anyoneâ€^TMs name and a Certidao Matricial para o efeito which is a tax certificate confirming this. You can register your property only when you have possession of these two documents.

Your lawyer will ask the vendor for copies of certain bills which will be checked to confirm that they have been paid prior to the sale taking place

Power of Attorney

Given the distances involved, most buyers of property in Cape Verde, give a power of attorney to their lawyer so that they can represent you when the deed and promissory contracts are signed, They will also be able to apply for the tax cards which will be necessary. All documents will be in Portuguese and we recommend that you obtain a translation in your own language. Documents will need to be signed in front of a notary and legalised by the Cape Verde Honorary Consul in Liverpool.

The Promissary Contract of Purchase

Signing the Contrato Promessa de Compra e Venda or Promissory Contract of Purchase and Sale is the next requirement. It is at this point that you will be asked to pay a deposit which is typically upto 30%. Once these documents have been signed, explaining the transaction terms, property details, warranties, penalties, price and payment method, both parties â€" buyer and seller â€" are legally bound. This document should be signed and exchanged in front of a notary in Cape Verde. Up until the point of exchange the vendor has the option to change his mind without penalty.

Transfer taxes or IUP tax is due to be paid at this point

Escritura - Deed of Conveyance

The Escritura or Deed of Conveyance must be signed in front of a public notary in Cape Verde. It is this document that completes the purchase and passes ownership to the purchaser. It is important to schedule the signing of the Escritura within a minimum of 30 days

Property Registry

Once the Escritura has been signed in front of the notary, the property must be presented and registered at the local Land Registry as well as the local municipal authority. The notary in Cape Verde will typically notify the municilpal authorities of the impending sales transaction. The Municipal authority will update their records and register the new owners details. You should expect to pay in the region of 2.5% of the value of the property in Notary, registration fees and stamp duties. These fees are due to be paid at the time of signing the Escritura.

Utility Services

New owners or their representatives will need to sign the necessary paperwork to connect utility services such as gas, water and electric. We would recommend that meter readings are taken at this point.

Taxes in Cape Verde

• Transfer taxes in Cape Verde are paid on a fixed 3% rate of the property value and are paid prior to the signing of the Escritura.
• Annual Property Tax are charged on 3% of one quarter of the properties value. This is paid each April.
• Capital Gains Tax - Declaracao de Mais Valias - is charged at a rate of 3% on the capital gain achieved on any property if the sale value exceeds 30% of the original costs. Building plots are charged the same 3% but based on a capital gain of 100% of the original cost of purchase.
• Inheritance Tax and Gift Tax are charged at 3% of the attributed value of the property.