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Your Cape Verde Buyers’ Guide to Purchasing Property
In this Cape Verde buyers’ guide we outline the steps you will typically need to follow when purchasing property on the islands. Please remember that the information we provide here is only intended to guide you, as a prospective buyer, as to what purchasing property in Cape Verde entails and is in not a substitute to professional legal advice.
Cape Verde Buyers’ Guide
1. Make sure the property is free of charges
The necessary checks will be made with the local Municipal Authority to determine whether there are any outstanding charges registered on the property.
2. Obtain all necessary documents
Constructed property must be covered by a valid Habitation Permit before transfer of ownership can take place. The existence of this permit automatically implies that the property is covered by a valid Building License.
Other documents that will have to be obtained are
- 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 not been registered in anyone’s name, it will also be necessary to obtain a certificate that confirms this (the Certidao Pela Negativa) as well as a Tax Certificate that corroborates the same fact (the Certidao Matricial Para o Efeito).
3. Make sure that all bills are paid up
The vendor will be required to provide evidence that bills for water, electricity and other services are fully paid and up to date.
4. Grant your lawyer a Power of Attorney
Your lawyer will require a Power of Attorney to act on your behalf and to apply for a tax card in your name. Although the Power of Attorney will be in Portuguese, you will be given an English translation. You will have to sign this document in front of a notary and also have it legalised by the Cape Verde Honorary Consul in your country before it is considered valid.
5. Sign the Promissory Contract of Purchase and Sale
By signing this contract (called Contrato Promessa de Compra e Venta) with the vendor, the two of you commit yourselves to the transaction. This agreement will stipulate the terms of the sale, particularly the property details and price, as well as other important points, including the completion deadline (if applicable), the date of the sale, warranties provided, penalties and so on.
At this point, the buyer will be expected to make a deposit on the property. The amount to be deposited is negotiable, but usually is between 10% and 30% of the purchase price.
6. Sign the deed of conveyance
On the day of the actual sale, you will sign the Deed of Conveyance (Escritura), together with the seller, in front of a Notary Public in Cape Verde. This deed is the document that gives you title to the property. You will have to pay notary fees, registration charges and stamp duty at this time. These usually amount to around 2.5% of the property’s value. There is also a conveyance tax, called the IUP, which is 3% of the property price.
7. Register your purchase with the Land Registry and Municipal Authority
Once the purchase has taken place, it will be registered with the local Land Registry and Municipal Authority. Your notary will be in charge of drawing up a report on the transaction and sending it to the Municipal Authority, which will then register you as the new owner of the property.
8. Obtain water, electricity and other services in your name
You will have to transfer the property’s services, such as water, gas and electricity into your name once you take possession of the property.
May we remind you that our Cape Verde Buyers’ Guide is intended for information purposes only and we cannot guarantee its accuracy or validity. As with any overseas property purchase, we highly recommend that you employ the services of a reputable local lawyer to guide you and protect your interests when buying property in Cape Verde.