About Us Contact Us Site Map

Property purchase

No restrictions for foreigners

Like many aspects of the Cape Verdean system, the process of property purchase is similar to the Portuguese process. There are no restrictions governing the purchase of property on the islands by foreigners, and it is not necessary for the buyer to open a bank account on the islands before embarking on the purchase process, although buyers are often advised to open two accounts: one in euros, one in escudos.

Necessary checks

The buyer must first apply for a tax card from the local Tax Office. The buyer can choose to grant their lawyer Power of Attorney, and then the lawyer will be able to obtain the card on their behalf. The lawyer also needs to acquire the Land Registry Certificate, Tax Information Certificate, and a map showing the property’s location. If the property is not registered, the lawyer must show that the property is not under somebody else’s name, by obtaining two certificates: a Certidao pela Negativa and a Certidao matricial para o efeito.

Completion

After the buyer has chosen a property and successfully negotiated the price, the Promissory Buying and Selling Contract must be signed, and the deposit of 10 – 30% must be paid by the buyer. The Deed of Conveyance (Escritura) must be signed with a Notary Public present and then title will then be transferred to the buyer. The buyer must then pay the taxes and outstanding balance. The buyer’s lawyer is also permitted to sign the Deed of Conveyance and to pay the taxes on behalf of the buyer, if required.

Costs and taxes

The costs and taxes associated with the purchase process are likely to total around 13% of the price of the property. The following is a guide to these costs:

• Notary fees - to be paid on signing the Deed of Conveyance, at a rate of approximately 2.5%
• Sales tax – approximately 3%
• Conveyance tax – approximately 3%
• Title deed - approximately 2%
• Registration fee - to be paid on signing the Deed of Conveyance, at a rate of approximately 2.5%

In Cape Verde, the seller of the property must pay the agent’s commission, which is usually around 5%.

Related items

Documents and Reports

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

Other related pages

Bookmark with:	What are these?
DeliciousDiggredditFacebookStumbleUpon