Real Estate In Cape Verde
/Buying Property In Cape Verde
First Published Date: February 18, 2016
Cape Verde is a unique place to live. Officially called the Republic of Cape Verde, the country is an island nation that covers 10 islands in the central Atlantic Ocean. It is the perfect location for individuals who want to get away from it all because the islands are 570 km away from Western Africa. The islands cover 4,000 sq. km., some of which are volcanic in origin. There is often very little rainfall so the island is not very green, despite the Portuguese word for green being Verde. The population of the country is 500,000, most of which are in the capital city. Roughly 45 percent of the population lives in a rural setting, and 20 percent of the population lives below the poverty line. The literacy rate is a respectable 85 percent and the country does have a stable democracy with good economic grown and living conditions. It is currently a developing nation and that is good news for you if you want to move there. It means that the country is rising to the forefront and the property prices are going to be low.
If you are going to buy property within Cape Verde, then you should look at the following:
1. First, you should consider that there is an immense amount of opportunity to buy property within the country. The people are friendly, it is always sunny, the sea is beautiful and the scenery is astounding. In addition, the country has a stable political and economic system, meaning you don’t have to worry about your peaceful home being turned into a military dictatorship. The country is aggressively pursing growth and tourism so that is good news if you are thinking of moving there. It means many good places to eat and many resorts to check out.
2. There is a lot of development within the country building new homes and that is something many foreign investors are looking at. The Canary Islands are 240 km to the north and much more expensive but offer nearly the same type of living environment as you get in Cape Verde. The infrastructure is still catching up with the building but there are many places for you to buy a home within the country.
3. The islands you should look at are Sal, Bao Vista, Santa Maria and Santiago. These are the islands with the most new developments. They offer low-density and environmentally-friendly buildings, and there are restrictions on how close to the beach buildings can be built here, meaning you will not lose your pristine views. There are also many amenities you can choose form on these islands including spas, tennis courts, gyms and more. The island of Sal has the international airport for the country and is the most developed of the islands. It is 30 km by 12 km and most of it is flat with the best beaches in the country. The island of Santa Maria has over eight km of wonderful beaches, plenty of restaurants and bars and a ferry service to the other islands. The island of Boa Vista is the easternmost island, and a place where a property boom is taking place. There is also a lot of infrastructure improvements being made there. The island is 31 km by 29 km and it has plenty of beaches, places for fiestas, a carnival and more. The island of Santiago is 75 km by 35 km and is it the largest island in the country. There are sandy beaches, mountains and it holds the capital of the country, as well as half the country’s population.
4. If you are going to buy property on these islands, then understand that all the property in Cape Verde is sold freehold, much in the same way as is done in Portugal. A verbal agreement is done and the purchaser’s lawyer will then begin the legal search. The tax office then provides a fiscal number and a contract is signed. As the purchaser, you need to pay between a 10 and 30 percent down payment.
5. There will be fees and costs for buying a home within the country. First, there is the transfer tax of three percent on all property purchases. You also have to pay about a 2.5 percent fee of the purchase price for notary and registration fees, plus a stamp duty. The property tax within the country is going to be three percent on 25 percent of the value of the property.
6. You need to finance your mortgage within the country and that must be obtained on property that is already built. You cannot get a loan on a property not yet built. Often it is better to pay cash than to try and get a loan.
7. There is no double taxation treaty between Cape Verde and most western countries. However, you will pay a tax on some other things like renter’s insurance.
8. You need to meet residency requirements within the country to live there as well. A visa will only be good for a stay of 90 days. Foreigners can obtain residency within the country if they work for a local business, have a business that employs a minimum number of Cape Verde citizens, invest a certain amount in a new business, or have sufficient income outside of the country.
Cape Verde is a stunning country that is full of wonderful and friendly people. However, it is important that you remember it is a developing country so it might not have the same amount of amenities you are used to. That being said, it is catching up fast and with the country possibly joining the European Union, there is the chance that it will then gain plenty of benefits that will make it even easier for those within Europe to live in the country. You are not living in the third world when you move to Cape Verde, but you are living in a beautiful place that you will absolutely love.
