Property Buying Guide for Cape Verde – A Good Investment Option

Have you ever considered a home away from home in an island country? Sounds amazing and too good to be true! Cape Verde - located near Senegal in West Africa - has emerged as a prominent property hotspot in recent years. Since 2006, property prices in Cape Verde have risen by around 20 percent! Political stability and a favourable climate are generally considered to be important factors that greatly appeal to people and to prompt them to invest in property in Cape Verde. Apart from a reliable social and political atmosphere, the island country also offers idyllic and almost picture perfect ambience for a quiet getaway.

A Viable Option

Cape Verde, comprising as many as eight islets and ten islands, has one of the most picturesque locales in the world. Offering a rich and diversified landscape, Cape Verde has a combination of hilly regions as well as lush plains. Beaches in Cape Verde are considered to be the major attraction of the island country. With the Government in Cape Verde going out of its way to promote tourism, there has been a gradual yet steady increase in the number of people that visit the island country year after year. In the recent five years, Cape Verde has recorded a growth rate of 25 percent each year in the tourism sector. The tourist count is expected to go up further on account of many new airports as well as an improved infrastructure.

Real estate in Cape Verde has greatly increased with developers anticipating a further rise in tourism in the coming years. When in Cape Verde, you are usually expected to pay in the national currency of Cape Verde Escudo or CVE. With an exchange rate of 1 Euro = 110.265 CVE, purchasing property in Cape Verde is excellent value for money! While payment is generally to be made in CVE, property listings are usually mentioned in British pounds or in Euros.


Exploring Cape Verde 

There are many websites offering details on all kinds of properties available – for purchase or rent - in Cape Verde. With many different kinds of property listings, most of the time, a requirement is needed to narrow down the search based on a certain criteria. Leading websites that deal in real estate in Cape Verde offer property listings under the categories of region or town. Websites that list available properties on the basis of region often include prominent regions, such as Boa Vista, San Vicente, and Barlavento.

Categorization on the basis of towns includes prominent towns such as Sal, Santa Maria, Cabral Beach, Baia Das Gatas, and Boa Vista.

Sal and Boa Vista are among the most popular hotspots. With an international airport, Sal is generally considered as the most developed among all the islands that make up the island country of Cape Verde. Sal attracts many tourists owing to the fact that it is well connected with regular ferries to nearby islands, such as Boa Vista, Sao Vicente and Sao Nicolau. Another popular tourist destination in Cape Verde is that of Boa Vista. Boasting a commendable development in infrastructure in recent years, with further development planned for the years to come, Boa Vista features prominently in the real estate market.

Understanding the Process Involved

When purchasing property in Cape Verde, certain factors that need to be kept in mind are the following:
 

1. Approaching the local Land Registry Offices and Municipal Authority to ascertain the land charges involved.
2. Getting details on land charges reveal whether there are any restrictions on title, and whether there are any registered charges on the property in question.
3. Checking the validity of the habitation certificate that is required for any transfer of constructed property.
4. Obtaining documents, such as ‘Certidao Matricial’ or the certificate denoting tax information, ‘Certidao do Registo Predia’ or certificate of land registry as well as Planta de Localizacao or the official map that clearly sets down the exact locations of properties in Cape Verde.
5. In the event that the property in question is not registered, certain documents are required to register the property.
6. Documents for registering the property include a certificate known as ‘Certidao pela negativa’ that shows that the property is not registered in anyone’s name, and a ‘Certidao matricial para o efeito’ or tax certificate that confirms that the property is indeed not registered.
7. Getting proof of utilities and taxes paid with reference to the property.
8. Signing on the Promissory Contract of real estate Purchase and Sale, known as the ‘Contracto Promessa de Compra e Venda’.
9. Putting down a negotiable deposit for the property concerned.
10. Ensuring that the Promissory Contract is signed in the presence of a Notary Public in the island country of Cape Verde.
11. Understanding the details, such as price, completion date, details of property, penalties, as mentioned in the Promissory Contract.
12. Property tax, commonly known as IUP tax, to be duly paid.
13. Signing the ‘Escritura’ or the Deed of Conveyance in Cape Verde before a Notary Public.
14. Registering the purchase with the local Municipal Authority as well as the local Land Registry.

Stamp duty along with registration and notary fees has to be paid as soon as the Deed of Conveyance has been signed.

Adopting the Right Approach

Keeping in mind the diverse requirements of different people, property developers offer a wide range in options in real estate. From villas to apartments on one hand, to houses and hotels on the other, Cape Verde indeed has it all. With choices aplenty when it comes to property in Cape Verde, proceeding with due amount of caution is highly recommended to avoid any hassle later on. When planning to invest in real estate in Cape Verde, you need to ensure that the lawyer involved has a good understanding of the English language. Also make certain that you are confident regarding your comprehension of factors, such as currency exchange, mortgages, taxation, and the process involved in the purchase. Do not sign on the dotted line until you are clear about all the aspects involved in the purchase.

Cape Verde is much sought-after amongst people wishing to purchase property with stunning views. Serving as the perfect getaway destination along with attractively priced properties, Cape Verde has much to offer indeed!