Cape Verde: Purchase Process

Below is the standard purchase process in Cape Verde and issues that may affect that purchase:

   1. Obtain key documents regarding the property from the local Municipal Authority and Land Registry Offices, including a "Certidao do Registo Predial" (Land Registry Certificate), "Planta de Localizacao" (official map with the property's exact location) and a "Certidao Matricial" (Tax Information Certificate).
   2. Obtain a purchaser's tax card.
   3. Sign a Promissory Contract of Purchase and Sale before a Notary Public in Cape Verde and pay a deposit of around 30%. This contract legally binds the parties to the sale of the property and sets out the terms of the transaction (property details, price, method of payment, completion date, warranties, penalties, etc.).
   4. Sign the final Deed of Conveyance called the 'Escritura' before a Notary Public in Cape Verde. This Deed must be scheduled with a minimum of 30 days' notice.

Costs of a standard property purchase in Cape Verde include the following:

    * Notary fees, registration fees, and stamp duty can be expected to be approximately 2.5% of the property's attributed value. They are payable on signature of the Deed of Conveyance.
    * Transfer Tax is a flat rate of 3% on the attributed value to be paid before the Deed of Purchase and Sale.
    * Holding 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).
    * Capital Gains Tax is a flat rate of 3% and is payable on plots for construction if their sale value exceeds a 100% increase of the value at which they were initially purchased.
    * Capital Gains Tax at a flat rate of 3% is payable on any other property if the sale value exceeds a 30% increase of the value at which it was initially purchased.

N.B. As stated earlier, the Cape Verde tax system is currently under reform and it is recommended you seek expert advice on the current legislation.