Why Invest in Cape Verde

Why Invest in Cape Verde & Frequently Asked Questions

Why Invest in Cape Verde?

Cape Verde is based of the West coast of Africa. Compared to many European destinations property prices are very competitive. Investment property in Cape Verde is becoming popular with investors as the potential of the islands becomes clear. It’s now looking certain that the Cape Verde islands will become a popular holiday destination. with Expedia.com giving the Islands the number one hot spot destination for 2007, in addition to its excellent all year round weather and an alternative to the well traveled usual hotspots.

With its unique blend of European and African culture, luxury accommodation, short travel times from Europe, beautiful beaches and mountain scenery and other economic features, Cape Verde will be hugely popular. This will add considerable value to property on the Islands. One of the principal signs that things are starting to move in terms of the development of Cape Verde was the construction of its second and largest International airport in the capital city of Praia on Santiago island.

Martin Sadler, sales manager of Assetz International, said: "We have watched Cape Verde develop as an investment destination with interest over the last 12 months&As major infrastructure is developed and influential holiday companies such as Thompson Holidays and RIU Hotels are attracted to the islands, Cape Verde is fast becoming an attractive medium-risk emerging market for overseas investors."

Summary of Key Investment Reasons

Cape Verde is a top investment hotspot of the world while it currently undergoes huge development in tourist infrastructures.

Property prices are at an all-time low and are sure to appreciate as Cape Verde begins to establish itself as a top International holiday destination.

Direct flights from the UK commencing November 2006.

Tax holiday incentives to foreign property purchasers.Exemptions of duties on imported materials for use in construction and installation projects connected with tourism investments.

Strong economic position, encouraging high returns on investment.

Stunning beaches, tropical scenery and breathtaking mountains to entice tourists.

Year-round warm, sunny weather, due to being on the same latitude as Caribbean, but with a flying time of 5.5 hours, therefore offering the closest tropical destination to Europe.

Very low cost of living.

Possibility of inclusion in the European Union at some stage.

The local currency is pegged to the Euro.

Stable democracy, very supportive of foreign direct investment.

Many resorts have guaranteed income schemes to entice purchasers.

Frequently Asked Questions

Who can buy property in Cape Verde?

All properties are bought freehold in Cape Verde and all foreign nationals are permitted to purchase land or property in Cape Verde, without exception. In fact, the local government is keen to attract the investor and, as such as, property and ownership laws have been made increasingly investor-friendly.

Do I need a solicitor?

We would always advise clients to use a solicitor in overseas property purchases.

Can I get a mortgage?

As Cape Verde is a very new emerging market, currently mortgages are not available from banks or developers. This is probably the biggest disadvantage of investing at the very start of the market. However, this is offset by the low prices being offered in this market at the moment.

Is the title of the property leasehold or freehold?

All property is freehold.

What sort of capital growth has been experienced in the area and what are the prospects?

Quote by Property Investor News

"Investment Property in Cape Verde is currently one of the best locations worldwide to buy property when looking for a good ROI (Return on Investment). It's clear to see the potential of these islands and as soon as Cape Verde becomes a mainstream holiday destination the price of property there will almost certainly increase drastically."

What rental yields can be expected?

The majority of developers are offering a rental guarantee of 5% for 3 years. This is applicable to our resorts in Cape Verde. Please see our Property section for more details.

What taxes should I know about?

Transfer Tax - A flat rate of 3% on the attributed value to be paid with the signing of the Contract of Purchase and Sale.
Annual Rates - A flat rate of 3% on 25% of the attributed value to be paid annually in April (or in two installments in April and September of each year)
Capital Gains Tax - There is no capital gains tax to purchases by overseas property investors in the current Cape Verde tax regime.
Inheritance/Gift Tax - Any property transmitted by inheritance or by gift is taxed at a flat rate of 3% of its value.

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