When you’re buying property in Cape Verde, you may well look at those within a resort or hotel complex that are for sale. You will soon hear the words “hotel rental scheme”: so what’s that all about?
Quite simply, it allows the management in charge of the resort or hotel to use your apartment, studio or villa as a hotel room or villa for the majority of the year. Usually 46-48 weeks of the year. For the remaining 4-6 weeks, you use it free of charge. You retain the Freehold of the property, and can sell it if you wish. You receive a percentage of the hotel rental revenue made. There are benefits to both you and the hotel:
| Benefits to you | Benefits to the hotel |
| No work marketing to, attracting or looking after guests | More rooms to honour their contracts with major holiday companies |
| No, or less, condominium fees | Greater control over who is using their resort |
| All utility bills taken care of | Having use of your property whilst not having to buy it |
| Regular income statements | Good share of the income: at least 50%, sometimes as much as 90% |
| Maintenance taken care of | |
| No need to find a local property manager | |
| Chance to have free hotel-standard accommodation for your annual holidays |
Don’t underestimate the benefit to the management of having more rooms available with which to honour their contracts with holiday companies. With increased international flights to and growing awareness of Cabo Verde as a holiday destination in northern Europe (6 hours from most major cities there), there is a scarcity of hotel rooms available, particularly on Sal.
Bear in mind that there tend to be restrictions on when you can take your 4 to 6 weeks’ holiday. In most resorts, you will NOT be able to take them all in one go. You may only be allowed to come 1-2 weeks in the high season (end of October to March) and sometimes there are restrictions meaning you cannot stay over peak periods, such as Christmas and New Year. You’ll also need to give plenty of notice – as much as a year – of the dates you wish to stay.
Is this just a timeshare? NO! You are typically the single Freehold owner of an apartment, suite or villa. You have the right to sell it, you also have the right to take your property OUT of the rental scheme.
Words of caution
1) some rental schemes have become renowned for paying out VERY little to their owners. When you consider that rooms in these resorts can cost 200-300 Euros a NIGHT, it can seem a little unfair that owners might receive only 2000 Euros a YEAR from a rental scheme. If the management of a resort gets in financial trouble, it might not pay out at all. Don’t forget that Covid-19 closed down many hotels and resorts in Cape Verde for over 2 years. This cost the operators dearly, as there was no furlough on the islands, security had to be ramped up, buildings, pools and gardens maintained … and some even got handed passengers who were stranded in Cape Verde due to Lockdown happening in the middle of their stay. They had to be fed and cared for, in an otherwise empty resort! The management of resorts in Cape Verde lost many millions, and it set them back years. Some resorts may have over extended themselves to build new projects, leaving them in serious debt. Sadly, owners may not get as much revenue as they should, or ANY, should the management not be able to meet their financial commitments.
2) changes to contracts and rentals: in the past, until March 2025, it was completely normal for people to use their properties exactly as they wish, including renting them out through platforms such as Airbnb and Booking.com. This was the norm, and widely known and acknowledged by the resort managers, for over a decade. Since March 2025 however, one resort management company in particular issued an edict that any rentals MUST be done through their rental scheme, and that to do otherwise was illegal. Though this is being disputed through the Cabo Verdean courts, the wheels turn slowly. If you are planning to rent out your property privately, PLEASE check the condominium rules and regulations.
3) Notice periods: some resorts demand a year’s notice for you to exit their rental scheme, and contracts can be rolled over automatically, sometimes without you knowing.
As always, our advice – and we are NOT legal advisers – is to check contracts carefully. Be certain, be careful and always know what you are signing up for. If in doubt, check with your lawyer.
A well-run rental scheme can give you free holidays and enough money to cover your flights without having to do much work. It’s a lifestyle investment, that also gives you your very own bricks and mortar in Cabo Verde. If you see promises of “22% return on investment” or 17%, or anything in double digits, be wary. If it looks too good to be true, it probably is.
Ways to safeguard yourself when entering a Hotel Rental Scheme:
1) insist on contracts
2) ask for rental statements for the property you are buying, or a very similar one, for the last five years
3) read contracts and check them with a lawyer
4) get notice periods and restrictions on when you can take holidays in writing
5) check your statements regularly
We’re happy to show you properties in rental schemes, and will always divulge what we know about them. Be aware however, we are not privy to the management’s plans or financial performance, other than what is published. We cannot be held responsible for a resort management’s actions or pay outs.
