Cape Verde is a former Portuguese colony off the coast of Senegal in West Africa. This tiny nation consists of 10 large islands and 5 islets. The climate at Cape Verde is hot and sunny throughout the year, which makes it an ideal getaway for those looking for a vacation home in winter.
Cape Verde has a flourishing real estate market, which has seen a double digit annual growth rate since the last decade. There is much to admire about Cape Verde, which makes it such as ideal place to buy property. The people here are friendly to a fault.
The natural scenery is simply spellbinding, the sand beaches are terrific and there is nothing quite like having a vacation home in Cape Verde next to the sea. Cape Verde has a lovely mix of Portuguese and African culture. The economy has been rock solid and the nation enjoys a high degree of political stability.
The government of Cape Verde is highly business friendly and goes out of its way to attract foreign investors into the country, offering a slew of wonderful incentives and tax breaks. There have been several hotels, casinos, world class golf courses and resorts that have come up in Cape Verde over the past decade. Cape Verde is ideal for the whole family, especially for those looking to buy a home in an eco-friendly country.
It is difficult to know how much a property is really worth in Cape Verde as the property prices vary widely from island to island. Even in a single island, property prices differ based on the particular area were the property is located.
The growth of infrastructure varies as well, from island to island. But the infrastructure is developing fast and property prices in areas that have a solid infrastructure are much higher than what it is elsewhere.
Among the islands in Cape Verde that show the best potential for growth when it comes to the property market, Sal, Boa Vista and Santiago show very bright prospects, and are favored by international property investors.
The first thing to do while buying property in Cape Verde is to know how much the property is selling for and find out if it’s a fair price for it. Properties in Cape Verde are sold freehold. Once the buyer agrees to buy a particular property, he enters into a provisional contract with the seller which involves paying a non-refundable deposit of 10 to 30% of the price of the property. A provisional contract entered into by both the buyer and seller is legally binding on both parties to the transaction. The final contract is signed later in the presence of a notary and the remaining payment is made. Finally, the property is registered with the local Land Registry and the taxes are paid.
Cost of Buying Property in Cape Verde
In addition to the cost of the property being bought, you will face additional expenses of 6% of the price of the property. This includes the stamp duty, which amounts to 2.5% of the price of the property, the property transfer tax, amounting to 3% of the price of the property and minor administrative charges. Finally, after buying the property, you will be required to pay an annual property tax of 3% on 25% of the property value. Contact us today to buy an overseas property.