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Purchase Process in Cape Verde

Below is the standard purchase process in Cape Verde and issues that may affect that purchase:

• Obtain key documents regarding the property from the local Municipal Authority and Land Registry Offices, including a "Certidao do Registo Predial" (Land Registry Certificate), "Planta de Localizacao" (official map with the property's exact location) and a "Certidao Matricial" (Tax Information Certificate).
• Obtain a purchaser's tax card.
• Sign a Promissory Contract of Purchase and Sale before a Notary Public in Cape Verde and pay a deposit of around 30%. This contract legally binds the parties to the sale of the property and sets out the terms of the transaction (property details, price, method of payment, completion date, warranties, penalties, etc.).
• Sign the final Deed of Conveyance called the 'Escritura' before a Notary Public in Cape Verde. This Deed must be scheduled with a minimum of 30 days' notice.

Costs of a standard property purchase in Cape Verde include the following:

• Notary fees, registration fees, and stamp duty can be expected to be approximately 2.5% of the property's attributed value. They are payable on signature of the Deed of Conveyance.
• Transfer Tax is a flat rate of 3% on the attributed value to be paid before the Deed of Purchase and Sale.
• Holding Property/Annual Rates - flat rate of 3% on 25% of the attributed value to be paid annually in April (or in two instalments in April and September of each year).
• Capital Gains Tax at a flat rate of 3% is payable on any other property if the sale value exceeds a 30% increase of the value at which it was initially purchased.

N.B. As stated earlier, the Cape Verde tax system is currently under reform and it is recommended you seek expert advice on the current legislation.

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.

Read more about the purchase process involved in buying property in Cape Verde.