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Property ownership

Encouraging investment

The investment-friendly approach of the Cape Verdean government means that, as well as having no restrictions on foreign ownership of land, foreign investors are eligible to apply to the Cape Verde Investment Agency for foreign investor status, allowing various tax breaks.

Tax break potential

Developers and larger investors can obtain a Protocol of Establishment, whereby they can negotiate directly with the Cape Verdean government for larger tax breaks. The developer or investor must meet certain criteria, from investing into the community to providing employment locally. In return, they may be eligible for tax breaks of up to ten years, or be exempt from import duties, allowing materials to be brought in from overseas at a cheaper rate.

These matters aside, the costs of owning a property in Cape Verde differ depending on the type and size of the property, the location, and other individual circumstances. However, as a general guide, owners should bear in mind the following:

• Income tax - rental income from a property in Cape Verde is taxable at a rate of 20%.
• Property tax – payable at a flat rate of 0.75% of the attributable value.
• Annual rates – payable at a rate of 3% on 25% of the property’s attributable value, paid in April each year, or in instalments in April and September.
• Capital gains tax – payable at a flat rate of 3%.

Capital gains on a plot for construction will be taxable if the market value or sales price rises by in excess of 100% of its original price. Capital gains will be payable on any sort of real estate if the market value or sales price rises by over 30% of the original price. In both cases, the tax must be paid within 30 days of the Deed, and must be accompanied by a capital gains statement.

• Annual municipal taxes – usually less than £200 each year.
• Inheritance / gift tax – a flat rate of 3% applies to any property transferred by gift or by inheritance.

Related items

Documents and Reports

	Cape Verde property investment report (325Kb)
Documents and Reports

Other related pages

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