Property Purchase Procedure in Cape Verde

Capeverdain law is based on the Portuguese judicial and legal system. However since Cape Verde became independent some small changes have occurred.

In 1993 the Lei de Investimento Externo or external investment law was introduced to enhanced legislation in order to offer more attractive prospects for foreign buyers.

All documentation should be translated by a trusted Portuguese translator to your own language.

Always be 100% certain that you fully understand the contract before signing. You should appoint a local solicitor to act on your behalf when buying a property.

Buying property in Cape Verde has two main parts. The first being the…

• preliminary contract ( contrato de promessa de compra e venda)

As soon as a price has been agreed for the property the preliminary contract is drawn up and signed by both the buyer and the seller. The buyer will have to pay a small deposit to secure the property. This is normally around 30% of the value. The deposit is non-refundable. The preliminary contract secures the purchase subject to the necessary legal research. This contract must be signed by the notary in Cape Verde.

Before the signing of the preliminary contract can take place you will need the following documents…

• Property registration certificate. This document is from the local land registry confirming that the seller has the ownership of the property and holds exclusive rights to sell the property. This document also ensures that the property you are buying is free of any debt, charges or mortgages. In short this document contains all the legal history of the property.

• Property tax document. This document outlines the property for annual tax reasons.

• License of use. You can obtain a copy of the usage licence from the local town hall. This document states that the property is approved for the purpose of its original building any residential property requires a habitation licence.

Then the completion will take place.

Completion takes place when the ‘Escritura’ is ready to be signed by both the buyer and the seller of the property.
It is at this stage that the buyer will be required to pay the remaining balance of the purchase price.

‘Escritura’ is the cape verdeian equivalent of title deeds. Once this has been signed the buyer is responsible for the insurance on the property.
It's is important to ensure that the registration document (registro) is in your name and logged with the Cape Verde land office as soon as possible, after the signing of the Escritura.

Fees for the notary are normally around 2.5% of the property value. This is normally paid when you have to sign the Escritura.

Registration of residence.

The following documents will be required for a retired foreigner to reside in Cape Verde…

• Pension retirement statement issued by appropriate entity(ies).
• Documents from the appropriate legal entity as proof of the petitioner’s capacity to manage his/herself and his/her goods.
• Certificate of criminal record or equivalent issued within the last two months prior to submission of the petitioner for permanent residency.
• Declaration from the petitioner, vowing to respect the laws and customs of the country.
• Proof of goods and financial resources of the petitioner and their spouse if applicable.
• Authentic photocopy of identification document.
• Marriage certificate, and both certificate of under age children or their dependents. If applicable, accompanied by respective translations in Portuguese.
• 2 photographs of each family member
• 51.55 CVE per person

If you would like more information about living, owning or buying a property in Cape Verde, then please feel free to contact us.

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