How to Buy a Property in the Cape Verde Islands

Are you dreaming of owning a home in the Cape Verde Islands? Whether for investment, holiday, or relocation, buying property in this Atlantic paradise is an exciting opportunity. Here’s a detailed guide to help you navigate the process.

1. Can Foreigners Buy Property in Cape Verde?

Yes, foreigners are allowed to own freehold property in Cape Verde with no significant restrictions. The country’s stable government, legal system modelled on Portugal’s, and investor-friendly policies make it a popular choice for international buyers.

2. Deciding Where to Buy

The Cape Verde archipelago features multiple islands, each offering different lifestyles and price ranges. Sal and Boa Vista are especially popular for international buyers due to their infrastructure and access, but bargains can still be found on islands like Santo Antão and São Vicente. Research each island’s unique features before making your choice.

3. Finding Your Property

• Use local real estate agencies or international property websites that specialise in Cape Verde.
• Visit in person if possible before making commitments.
• Popular property types include apartments, villas, townhouses, and undeveloped land.

4. The Buying Process: Step by Step

a. Engage a Local Lawyer

It is highly recommended to hire a Cape Verdean lawyer who is familiar with local property laws and the required documentation. The lawyer can be empowered with Power of Attorney to handle the transaction on your behalf if you’re not present in Cape Verde.

b. Reserve the Property

Once you’ve selected a property, you’ll typically:

• Pay a reservation fee (often €3,000 or 5% to 10% of the property price, depending on the property).
• Sign a reservation form or a Promissory Purchase and Sale Contract ("Contrato Promessa de Compra e Venda")—this commits both parties to the sale.

c. Legal Checks and Documentation

Your lawyer should ensure:

• The property is registered at the Land Registry (Certidão do Registo Predial).
• There are no outstanding debts on the property (e.g., unpaid utilities or taxes).
• Title and building permissions (habitation license for urban, location map for land) are valid.
• Obtain a tax number (NIF) for property purchases.
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d. Sign the Promissory Contract

Signing the Promissory Contract binds both parties to the sale and usually requires a deposit (typically 10-30% of the purchase price). This contract details the property, purchase price, payment structure, completion date, and penalties for breach.

e. Final Deed (Escritura)

The sale is completed by signing the Deed of Conveyance (Escritura) in front of a Notary Public. This is when the remaining balance is paid and the ownership is legally transferred. If you’re not present, your lawyer can execute this with the Power of Attorney.

f. Register Your Ownership

Register the property with the local Land Registry and Municipal Authority to make your ownership legally enforceable against third parties.

5. Costs and Taxes

Typical buyer costs amount to 6-8.5% of the property price and may include:

Fee Category, Rate / Amount (%) and Who Pays.

Transfer Tax (IUP): 1.5% – 3% Buyer

Registration Tax: 2.5% Buyer

Legal Fees: ~€800–€1000 or 3% Buyer

Notary Fees: ~€420 Buyer

Real Estate Agent Fee: 5% Seller

Reservation Deposit: 5-10% (of property) Buyer

All figures are approximate and may vary depending on the value and island of the property

6. Financing Your Purchase

Mortgages are available within Cape Verde but are generally limited to properties that are already built—not off-plan. Many buyers use savings, raise equity from property elsewhere, or arrange individual financing.

7. The Green Card for Investors

Foreign buyers who purchase property for residency purposes, meeting minimum investment thresholds (US$90,000–$135,000 depending on municipality), can apply for a Cape Verde Green Card. This offers residency benefits and tax reductions for qualifying properties.

8. Key Tips for Buyers

• Always work with a reputable lawyer and real estate agent.
• Make sure all documents are in order and properly translated to Portuguese.
• Ensure taxes, fees, and utilities are settled before completing the sale.
• Consider visiting the property in person to verify its condition and location.
• Allow for 3–6 weeks for the full transaction process after signing the Promissory Contract.

Buying property in Cape Verde is a straightforward process with proper legal guidance. With political stability, beautiful landscapes, and growing infrastructure, the islands remain an attractive place for real estate investment, holiday homes, or retirement retreats.

Note: Always verify current regulations, taxes, and procedures with local authorities or legal professionals, as laws and requirements can change.