FAQs

What is the legal system in Cape Verde?

Civil law system based on Portuguese law.

Do I need to instruct a Lawyer?

At Jet2let we always advise buyers to instruct an independent lawyer. We can make recommendations on request. The lawyers services should include all the necessary searches and checks on title, negotiating, amendments to the promissory contract of Purchase of Sale ("Contracto Promessa de Compra e Verda") and Deed of Conveyance ("Escritura"), preparing a power of attorney, obtaining the necessary tax cards on your behalf and registering the purchase.

What will the lawyer charge?

Usually about 1500 Euros.

What are the costs and taxes when purchasing in Cape Verde?

Add approximately 6.25% on to your purchase price to account for the below costs:

Property Transfer Tax                    3% of purchase price
Stamp duty                                      0.002% of purchase price
Registration & Notary Fee            1-1.5% of purchase price
Miscellaneous                                1% of purchase price
Property Tax                                     0.75% pa of purchase price

Are there mortgages available?

70% loan to value mortgage available on completion with Portuguese Bank.

Is there a structural guarantee?

Yes, under Cape Verdian law there is a 5 year structural guarantee.

What ongoing costs/taxes are there?

Maintenance & Service Charges - typically around 800-1500 Euros per annum depending on development and size/type of property.

Annual Rates - flat rate of 3% on 25% of the attributed value to be paid annually in April (or in two instalments in April and September of each year).

Services - payment for utilities

What about other taxes etc?

Capital Gains Tax Applies to:-

(i) Plots for construction if the sale value exceeds the purchase value by 100%
(ii) Other property if the sale value exceeds the purchase value by 30%

In both (i) and (ii), the capital gain is taxed at a flat rate of 3% and should be paid within 30 days of the Deed, together with the submission of a "Declaracao de mais valias" (Capital Gains statement).

Inheritance/Gift Tax - Any property transmitted by inheritance or by gift is taxed at a flat rate of 3% on the attributed value.

Capeverdian Will. Once you have aquired the property, it is advisable that you execute a Capeverdian will to deal with your property in Cape Verde.

Are there direct flights from the UK and Ireland?

Flights commenced from Gatwick and Manchester to Sal in November 2006, with Astraeous airline, see www.flystar.com. Direct flights from Ireland are coming soon. There are also direct flights to Sal from Lisbon, Amsterdam, Paris, Munich, Frankfurt and Oporto.

This information is intended to give potential purchasers a general overview of how the legal and tax system operates in Cape Verde and should not be taken as a substitute for specific independent advice. Information provided is for non-resident owners.