Cape Verde

Buyers Guide

If this is your first time buying real estate in Cape Verde, youre bound to have a lot of questions about the process. Once you get in contact with us, our estate agents will be at your complete disposal to resolve your queries and make sure everything runs as smoothly as possible. In the meantime, heres some information, tips and advice to get you started.

Hire a reputable Cape Verdean lawyer
The best possible advice anyone can give you when you are planning to invest in land or real estate in Cape Verde (or indeed any foreign country) is that you employ a reputable, bi-lingual, local lawyer to look after your interests.

Obtaining a mortgage
The market for real estate in Cape Verde is still very new and local banks and developers do not yet offer mortgages to foreigners who want to invest in property that is still under construction. In such a case, you would have to finance your purchase by obtaining a mortgage in your own country.

It is possible however to obtain a Cape Verdean mortgage on property that is already finished.

Checking that the property is free of charges
Any real estate you buy should be free of outstanding fees, charges or fines when it is handed to you. Your lawyer will check the property against records held by the local Municipal Authority in Cape Verde to make sure of this.

Making sure all other bills are fully paid up
The vendor will be asked to present up-to-date receipts for all utilities and services associated with the property, including water, electricity, gas and any community fees. If the property forms part of a residential community, it is wise to find out about the monthly maintenance fees for common areas before you commit yourself.

Obtaining the necessary documents on the property
There are a number of documents that will have to be acquired before the sale of any real estate in Cape Verde can take place, namely :

A Habitation Permit (in the case of property that is already constructed). This permit presupposes the existence of a valid Building Licence.
The Land Registry Certificate (Certidao do Registro Predial)
An official map that shows the exact location of the property (Planta de Localizacao)
The Tax Information Certificate (Certidao Matricial)
If the property has never been registered in anyones name (for example property that is part of a new development), you will also need the following documents to confirm this:

The Certidao Pela Negativa
A Tax Certificate called the Certidao Matricial Para o Efeito
Dealing with the paperwork
This task is best entrusted to your lawyer, who will need a Power of Attorney to act on your behalf. You will have to sign this document before a notary, after which it must be legalised by your countrys Cape Verde Honorary Consul. The Power of Attorney document will be in Portuguese, but you will be provided with an English translation as well.

The Cape Verde Tax Card
Any foreigner who buys real estate in Cape Verde will be required to register with the local Tax Authorities and obtain a Tax Card. Your lawyer will be able to do this for you with your Power of Attorney.

The Promissory Contract of Purchase and Sale
Once you have found a suitable property, you will be asked to pay a deposit (usually from 10% to 30% of the purchase price) in order to secure the sale. At this point, you will sign a Promissory Contract of Purchase and Sale (Contrato Promessa de Compra e Venta) with the vendor, whereby both parties commit to the transaction.

This agreement will define the terms and conditions of the sale, including details about the property, the agreed purchase price, date of the sale, completion deadline (where applicable), warranties, and so on.

Signing the Deed of Conveyance and registering the property in your name
The Deed of Conveyance (Escritura) is signed by the buyer and seller in front of a Notary Public in Cape Verde on the agreed date of the sale, and is the document that gives you title to the property. The notary will then file a report of the transaction with the local Land Registry and Municipal authority and you will be registered as the new owner of the property.

At this point, you will be asked to pay notary fees, registration fees and stamp duty, which amount to about 2.5% of the propertys value, as well as a conveyance tax of 3%.

Obtaining utilities in your name
Once you take possession of the property, you will have to sign up for utilities such as water, electricity and so on, or transfer existing contracts to your name.

Disclaimer : The above information is only provided as a guide and we do not guarantee its accuracy or validity. It is in no way intended as a substitute for professional legal advice and you should consult a qualified lawyer before entering into any legally binding contracts.

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