Legal Advice

Legal Advice

Cape Verde Law

In general the judicial and legal system in Cape Verdean is the same than in Portugal, except of some small changes in the law which were made after Cape Verde's independence in 1975. One of the aims of the Cape Verdean government is to attract private foreign investment, especially in the tourist industry which most likely will be the future income source of the islands.

To achieve their aim, the "Lei de Investimento Externo" ("External Investment Law") was introduced in 1993. The new law makes it easier for foreigners to invest in the islands. One of the advantages now is an enhancement which includes a 5-year initial tax exemption and a subsequent tax reduction by 50% on corporate tax for the following 10 years. Corporate tax at the moment is at 30 %.

Numero Fiscal de Contribuinte – Persona Fiscal Number

If you are interested in buying property on any of the islands of Cape Verde, you will need to get a personal fiscal number. There are two ways of obtaining the number. You can either apply for one at a local tax office or you can just open a local bank account which you will need in any way. By opening an account, the required number will be assigned automatically.

Contracts

Purchasing property in Cape Verde is divided into to major parts, where you will have to signs two different contracts. The first part is the "Contrato de Promessa de Compra e Venda" (preliminary contract) and the second part is the "Escritura" (completion contract).

Contrato de Promessa de Compra e Venda - Preliminary Contracts

The preliminary contract is the first step of owning your dream home in Cape Verde. At first, seller and buyer have to agree on a price. After that a deposit becomes due which is usually not very high, but always depends on the developer and the development itself. In most cases, the deposit that has been paid is non-refundable. The preliminary contract (promissory) can be compared with the exchange of contracts in the UK or other countries. It secures the purchase subject to satisfactory legal research. Like in the majority of other EU countries, contracts of this significance must be signed at a notary.

Before you will be able to sign the preliminary contract, you will need to obtain several legal documents. Below you will find a list of all of them. Should you have any problems with obtaining these documents, your legal representative will know what to do and how to get them.

Property Registration Certificate

The Property Registration Certificate can be obtained from the local land registry. It is a "history" of the property and confirms that the seller has an exclusive ownership as well as exclusive legal rights to sell the property. Another reason why you need the certificate is the fact that it ensures that the property or the land is free of mortgages and additional charges.

Property Tax Document

New developments and properties on Cape Verde currently do not have this document which means that the developer is required to issue a temporary certificate. For other properties, this document is showing the annual tax purposes.

License of Use

To get the license of use you will have to go to the local Town Hall. Basically, this document specifies the purpose of the property. If you are planning on buying a commercial property you will require an industrial licence and for a residential property you will need a habitation license.

Completion

Before being the legal and official owner of the new property, there are some things to take care of. At first the buyer will have to pay the remaining amount of the purchase price then the "Escritura" can be signed which is the equivalent to the deeds of the property. Once this is done the buyer will have to insure the property as well as re-register and transfer the property which has to be done in the presence of the land registry and tax office. After all of this is done, the property is legally the property of the new buyer. Make sure that the registration document (Registro) is in your name and ensure that after signing the final contract it is safely lodged with the Cape Verde land office.