Non Cabo Verdean citizens are perfectly entitled to buy and own property in Cabo Verde. There are no restrictions on the number of properties you can own or amount you spend. Buying a property worth more than 120,000 Euros can put you on a track to residency. Ask your lawyer about this, as it must be in a single transaction, paid via a Cabo Verdean bank and is NOT quick or straightforward.

To own property and to go through the buying process, you need to have a NIF, which is the equivalent to a National Insurance number. If you are seriously considering buying, it is worth getting your NIF. Anyone whose names are going to be on the Deeds needs to have a NIF and – NB – anyone who may inherit your property should also get one. A NIF gives you official tax paying status and you will be asked for it when going to open a bank account, getting WiFi supplied, even paying your electric and water bills.

To get your NIF, you take a copy of your passport along with your parents’ names along to a finance office of the Camara Municipal. In practice, if you’re not a Portuguese speaker, you will probably want to take a local friend or lawyer with you. Some lawyers make no charge for this service for their clients. We at Casa Verde do this free of charge for our clients.

While you’re in the country, it’s also wise to appoint a lawyer. Just as lawyers or solicitors handle conveyancing in European countries and the UK, advogados (lawyers) handle the buying and selling process in Cabo Verde. Many are highly experienced, qualified and may speak several languages including English fluently. All contracts are checked and rubber stamped by a Notary, as well. We highly advise using a lawyer unless you are fluent in Portuguese and Kriolu AND very familiar with Cabo Verdean law. Whilst we do not recommend one lawyer over another, we can give you a list and it’s also wise to ask friends who have been through the process for recommendations. On average, the entire process will cost you 800 – 1000 Euros depending on the complexity of the sale and whether you want to sign the final Deeds yourself, or assign Power of Attorney. How long it takes depends on many factors including which lawyer you use, how busy the Notary office is, whether both sellers and buyers have Power of Attorney and any complexities in ownership: an average time from offer accepted to signature of deeds / completion is 3-6 months but it could take even longer if mortgages or changes of marital status are involved. The process has been achieved in as little as six weeks, but this is highly unusual.

It is perfectly legal in Cabo Verde for the same law firm to act for sellers AND buyers as long as both parties agree. It can make the sale go quicker, as the lawyers are not constantly waiting for email responses from another company, they simply walk across the corridor to each other’s offices.

It’s unlikely that you will be here throughout the entire legal process, which can take anything from 3-6 months as standard, and sometimes longer. Unless you want to fly back and forth and sign the Deeds in person and speak fluent Portuguese, it makes sense to sign over Power of Attorney to the lawyer you choose. This involves getting an appointment with the local Notary with your lawyer present, dress smartly (no shorts and t-shirts!) and signing documents which allow your lawyer to act on your behalf and sign the documents while you are back home. All documents will be sent to you in advance to check and amend if necessary, written in both Portuguese and English. If you are outside Cabo Verde, at home, and need Power of Attorney, the documents can be sent by email, printed and apostilled, either at a registered Notary or at your Embassy. It costs quite a lot of money and then the documents need to be couriered to Cabo Verde. This can take several weeks.

This part of the buying process is much the same anywhere. You can look on the internet, see properties privately or go through an estate agent. Reputable and licensed estate agents such as Casa Verde act more as property consultants, guiding you through the process step by step, right through until you have the keys in your hand and often beyond that. They will show you around the different parts of your chosen island, help you shortlist properties, take you to viewings whether in person whilst you’re on the island, or virtually when you are back home. They liaise with both buyers and sellers and their lawyers.

It’s advisable to go and see several estate agents and see quite a few properties. There are many different areas and types of apartment, townhouse or villa, different condominium management companies, all with their pros and cons.

Important things to ask about a property:

• What are the annual condominium fees
• How many square metres is the property
• Are there any charges from the estate agent to the buyer (there should not be)
• What is included in the sale – furniture, fixtures, fittings
• Is the title deed correct
• Are there any debts or mortgages on the property (NB these must be cleared by the seller before the property is transferred to your ownership)
• What is the IUP (council tax)
• What is the Registered Value of the property

The Registered Value of a property is important as it determines the council tax (IUP) and the sales tax (see Costs, below). The Registered Value is typically what the property was bought at. If you are buying a resale apartment, the person may have bought it off plan many years ago at a lot higher price than you are getting it now. To lower the IUP, you can apply to have it revalued by a registered surveyor. As there are not many registered surveyors on the islands and all documents must be approved by the Camara Municipal (local council), this can take around 4 months.

When the sale is agreed, if you’re buying through Casa Verde, you sign a simple Memorandum of Sale, which signals that you are ready to buy and the seller agrees to sell to you at the price negotiated.

You then pay a deposit of 4% or 2,750 Euros (plus CV IVA 15%), whichever is higher. This can be paid by bank transfer or cash in Euros or CVE. In our case, the deposit is paid to and held by Casa Verde, independent of buyer and seller, until the Deeds are signed. It is non-refundable unless the ownership paperwork proves incorrect or the buying process goes on so long as to be deemed unreasonable. The deposit is typically the only one you pay and is deducted from the final settlement figure due when Deeds are signed. If the seller or estate agent asks you to pay a higher deposit, ask your lawyer. This deposit, or Reservation Fee, reserves the property in your name, takes it off the market, let’s no-one else make an offer on it, ie you cannot be gazumped. NB until this deposit is received the property is NOT off the market and, as other agencies may also have it on their books, you could still be outbid / gazumped.

Once the deposit is received and both buyers and sellers have signed the Sales Agreement, your estate agent will take copies of your passport, your NIF and brief the lawyers of both buyers and sellers. This is why it Is important that you have your NIF and your lawyer in place, with Power of Attorney unless you are staying on the island, ideally before you make an offer.

the lawyers are instructed, they start to work. It is typical for them to ask for their fees to be paid upfront as they will incur costs as soon as they start working on your purchase.

They first get a copy of the property’s CIP – Certidão de Identificação Predial – which shows who owns the property, exactly which one it is, a floor plan, its size and any IUP debts or mortgages on it.

All being well, they draw up a Promissory Contract (CPCV) in English and Portuguese. This is sent to both parties who may tweak it, add in clauses and disclaimers, then exchanged. If you want to add in clauses, for example “all appliances must be in full working order” or “if the seller withdraws from the sale after this point, they will pay double the deposit” then this is the time to ask your lawyer to include them.

It is very important to be upfront and clear about when you would like to complete, or sign the deeds, and will be ready with the remaining percentage of the funds to buy the property.

Once the Promissory Contract is exchanged, you do NOT typically pay a further deposit. Consult your lawyer if you are asked for one.

The proposed deal is then taken to the Notary for approval. Depending on the time of year and how busy they are, this may take some weeks. The busiest time for Notaries is Jan – March. In July and August, at Christmas things also slow down, as this is when many public officials take holiday. Be prepared. Be patient. Things move slower here: it’s often referred to as “Island time”.

Once the proposed sale is approved, an appointment is made to sign the Deeds over to the new buyer. Again, this could involve a few weeks’ wait for the Notary to be available.

You will not inherit any debts on the property. It is now the law that all IUP debts must be paid off before the Deeds are signed. Your lawyer will make sure that any condominium fee and IUP debts, and all utility bills, are also paid up to date before the property becomes yours. It will be stated in the Promissory Contract.

The seller specifies where the completion funds (ie the remaining amount due to buy the property after any deductions including the deposit) are paid and in which currency. Typically, you pay to your lawyer’s client account 5-10 days before the deeds are to be signed. Then, the lawyers use these funds to settle outstanding debts the seller has BEFORE the deed is signed. Of course, the seller receives the NET amount after the payment of all debts. In some cases, you may be asked to pay the completion balance direct to the seller. This may sound huge alarm bells, and always check with your lawyers that they are comfortable with it. Luckily, with strict banking laws of CHAPS and FastPay it is easy to track and prove transfer and receipt of funds. If the seller claims they haven’t received your the money, you can recall it.

One-off costs – A guide and summary:

Lawyer’s fees: 750 – 1000 Euros

Sales tax: 1.5% of the Registered Value of the Property. Example – if the property is registered as worth 100,000 Euros, Sales tax is 1,500 Euros

Notary, Stamp Duty, Land Registry fees: between 750 – 1500 Euros (the buyer pays the Notary fees)

Estate agents at Casa Verde, we charge nothing to buyers for helping you throughout the process. Make sure other estate agents aren’t charging you, AND the seller, commission! We only charge if you require a mortgage valuation, survey (NOT typical on Sal), inventory, appliance check or snagging.

Annual costs – A summary:

Condo fees (vary enormously by property) typically 500 – 3,500 per year, sometimes there are no condo fees.

IUP (Council tax) roughly 1.5% of 45% of the Registered value of the property. Example – if the property is registered as worth 100,000 Euros, the IUP will be approx. 675 Euros pa. Usually a little less.

Monthly costs / cost of living:

When budgeting, it is important to remember:

Health insurance:  as the healthcare on the islands is basic, it is wise to have private health insurance including cover for air evacuation to Europe (Canary Islands 2 hours away).

Buildings and contents insurance: some condominium fees will include buildings insurance but check, and contents are your own responsibility.

Management fees: if you are buying in a resort, and putting your property in some kind of hotel rental scheme, there may be management fees on top of condo fees,

Utilities: water, electricity, phone and and internet. Costs depend upon your usage but for a typical 2 bed, 2 bath may be 60 Euros a month for water and electricity; 60 Euros a month for unlimited high speed 4G internet access.

Food and drink: bear in mind that most food is imported into the islands from Brazil, African mainland or Europe and so therefore will be no cheaper and sometimes more expensive than at home. Eating out is similar to northern European prices. Shopping around and also going outside of main tourist streets, you’ll find better value eating out, with places offering a dish of day for 5-6 Euros.