Buying Property in Cape Verde as a Foreigner: How It Works

Step one: get a NIF, the Cape Verdean tax number

Before you can sign anything you need a Número de Identificação Fiscal (NIF), Cape Verde's tax identification number. It is required for every property transaction and can be obtained through Casa do Cidadão, the government's citizen-services agency, either in person or through a legal representative acting under power of attorney.

Most foreign buyers appoint an independent lawyer early and grant power of attorney, so the NIF, searches and signings can all be handled without repeated flights out. Use a lawyer who acts for you alone, not one recommended by the seller or developer.

Reservation, promissory contract and deposit

The purchase usually starts with a reservation and a promissory contract (contrato de promessa de compra e venda), signed with a deposit known as the sinal. According to Judicare, an international law firm active in Cape Verde, the full purchase contract typically involves a deposit of around 10% and commits both sides to the transaction; new-build purchases then follow stage payments as construction progresses.

Before you commit, your lawyer should obtain a search at the local land registry (registo predial) to confirm the seller actually owns the property and that it is free of charges, mortgages or disputes. Title checking matters more in Cape Verde than in the UK, because historic plots were not always formally registered.

Completion: the escritura pública

The sale completes when both parties sign the escritura pública — the public deed of sale — before a notary, and the balance is paid. The notary's role is narrow: basic checks, witnessing the deed and in some cases registering it. Your own lawyer does the substantive due diligence.

After signing, the deed must be registered at the land registry in your name and the transfer tax paid — Judicare notes the tax on resale purchases is due within 30 days of signing the deed. Only once registration is complete are you the legal owner on the public record.

Taxes and fees: budget 5–7% on top

The main purchase tax on resales is the IUP (Imposto Único sobre o Património), charged at 1.5% of the property value, according to the Cabo Verde Expert buying guide — though the tax office can apply a higher assessed valuation than the price you paid. New properties bought from a developer are generally subject to VAT (IVA) at Cape Verde's 15% rate instead, so confirm with your lawyer which regime applies before you sign.

Rates and fees can change, so treat the figures below as a planning guide and have your lawyer confirm current amounts with the tax authority before completion.

• IUP transfer tax: 1.5% of the declared or assessed value on resale purchases
• Stamp duty (imposto de selo): around 0.8% of the transaction value
• Notary fees: roughly €420, plus land-registry registration of about €200–300
• Ongoing annual IUP property tax, commonly cited at 0.5–1.5% of assessed value
• All-in transaction costs typically total 5–7% of the purchase price

Money, mortgages and the euro peg

Cape Verde's currency, the escudo, has been fixed against the euro at 110.265 CVE per euro since 1999, under an exchange accord signed with Portugal in 1998. For buyers paying in euros there is effectively no local currency risk, and many resort properties are priced and sold in euros.

Local mortgage finance for non-residents is scarce and expensive — rates of roughly 7–8% are typical where it exists at all — so the overwhelming majority of foreign purchases are cash, funded by savings or by borrowing against property at home. On resale, capital gains tax of around 10–15% can apply, so keep your purchase documents and invoices from day one.