Cape Verde: Guide to Buying Costs and Procedures
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Total transaction costs are high in Cape Verde
How high are realtors’ and lawyers’ fees in Cape Verde? What about other property purchase costs?
Transaction Costs |
||
| Who Pays? | ||
| Notary Fees | 3% | buyer |
| Sales Tax | 3% | buyer |
| Conveyance Tax | 3% | buyer |
| Title Deed | 2% | buyer |
| Registration Fee | 2% | buyer |
| Agent’s Commission | 5% | seller |
| Costs paid by buyer | 13% | |
| Costs paid by seller | 5% | |
| ROUNDTRIP TRANSACTION COSTS | 18% | |
| See Footnotes Source: Global Property Guide |
||
How difficult is the property purchase process in Cape Verde?
Foreign nationals may freely purchase residential properties on the Cape Verde Islands.
When buying property in Cape Verde, He buysis not required to open a bank account, although some real estate agents advise to it make payments and property management easier. Taxes have to be paid in the local currency.
A tax card has to be obtained from the Local Tax Office. A lawyer can be assigned to do this on behalf of the buyer, with a corresponding Power of Attorney, written in Portuguese.
The lawyer also obtains the Land Registry Certificate, Tax Information Certificate, and the map showing the exact location of the property. In case the property is not registered, the lawyer acquires a Certidao pela Negativa and a Certidao Matricial Para o Efeito, both certificates confirming that the property is indeed not under anyone’s name. These certificates are needed to register the property. The lawyer can also sign the Deed of Conveyance and pay the taxes for the buyer.
Once a property has been chosen and price is agreed upon, a Promissory Buying and Selling Contract (Contrato Promessa de Compra e Venda) is signed, binding both parties to the agreement. The buyer also needs to pay a deposit of 10%-30% upon signing.
The Deed of Conveyance, or the Escritura, is signed in the presence of a Notary Public to transfer the title to the buyer. This should be done within 3-4 weeks after the signing of the Promissory Buying and Selling Contract. The buyer needs to pay the remaining balance and the taxes.
Registration of the property is done at the Land Office and Land Tax Office.
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Currency:
Cape Verde uses Cape Verde Escudo. Exchange rate is at €1=CVE110.252 as of 5th July 2006.
Cape Verde - more data and information
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Your Comments
posted by jose monteiro | 2007-02-14
Trainee Lawyer, Lisbon
the informations regarding the property costs are not correct and need to be updated. for example: For Notary and Registry fees (including the Stamp duty) the costs are approx. 2.5%. The Buyer pays the property transfer tax (IUP) at a flate rate of 3%. For legal fees the values is within 1.5 to 2.5%. The total costs paid by the Buyer are approximately 7.5%. It is very important for potencial Buyers to have the right information about the tax costs on their property. Best regards
posted by Matthew Pollock | 2007-02-22
Editor, Global Property Guide
Thank you. We are reviewing transaction costs in all countries, and will prioritize revisiting those in Cape Verde.