Buying Process
 
The process of purchasing property in Cape Verde generally involves the following steps:
 
Cape Verde uses Portuguese property purchasing laws in general and any lawyer who is qualified in Portuguese property law can practice in Cape Verde.
 
The legal side of buying a property falls into two parts, the preliminary "promissory buying and selling" contract (Contrato de Promessa de Compra e Venda) and the completion contract (escritura).
 
The "promissory" contract legally secures the purchase, and is subject to satisfactory searches having been returned. The law protects both parties involved. The important documents to check out before signing a ‘promissory contract' are the Property Registration Certificate and the Licence of Use.
 
The signing of the "escritura" or completion contract can be carried out on your behalf by appointing Power of Attorney to your lawyer. At this stage the purchaser must pay the remaining balance of the purchase price, transfer tax (Imposto de Sisa) plus notarial fees to the notary advogado. The total tax comes to around 5% of the value stated on the notary document.
 
Capital Gains Tax
 
(i) Capital gains regarding plots for construction are taxable if their sale value exceeds a 100% increase of the value at which they were initially purchased.
 
(ii) Capital gains regarding any other property are taxable if their sale value exceeds a 30% increase of the value at which they were initially purchased.
 
In both (i) and (ii), the capital gain is taxed at a flat rate of 3% and should be paid within 30 days of the Deed, together with the submission of a "Declaracao de mais valias" (Capital Gains statement).
 
Inheritance/Gift Tax
 
Any property transmitted by inheritance or by gift is taxed at a flat rate of 3% on the attributed value.