the legal process

Your consultant at Noscasa will explain the full legal process of purchasing a property in Cape Verde, ensure that you are aware of all your obligations and have completed the necessary paperwork. Your solicitor should also explain all the necessary steps in buying a property. However, below is a brief summary for your information:

searches:

• Carry out land charge searches at the local Municipal Authority and Land Registry offices -

These will reveal whether there are any charges or restrictions on the title. A valid to take place in Cape Verde and the existence of such a permit presumes that a valid building licence was issued previously. You must obtain the following documents during your searches -

• the Land Registry Certificate (Certidao do Registo Predial)
• Official Location Map (Planta de Localizacao)
• the Tax Information Certificate (Certidao Matricial).
• If the property is not registered you must obtain a certificate confirming that the property is not registered in anyone's name (Certidao Pela Negativa) and a tax certificate confirming this (Certidao Matricial Para o Efeito). With these two documents it will be possible to register the property.

previous bills:

• Check the payment of any outstanding relevant taxes and bills for electricity and other services by asking the vendor to produce evidence of payment of such invoices.

power of attorney:

• Your solicitor may need you to sign a power of attorney so that they can represent you in the Promissory Contract and Deed signings and to request the necessary tax cards on your behalf. It will be drafted in Portuguese and accompanied by an English copy. The POA needs to be signed infront of a Notary and legalised by the Cape Verde honorary consul. For UK buyers, this office is located in Liverpool or you can do it whilst still in Cape Verde.

tax card:

• you need to obtain a tax card

promissory contract:

• Sign the Promissory Contract of Purchase and Sale (Contrato Promessa de Compra e Venda). At this stage the purchaser will normally be expected to pay a deposit, which is negotiable (10% or lately 30% is common practice).
  In Cape Verde, all parties are contractually bound on signature of this Promissory Contract of Purchase and Sale, which sets out the terms of the transaction (property details, price, method of payment, completion date, warranties, penalties, etc). This should be signed before a Notary Public in Cape Verde. Until such contract is exchanged the vendor is not committed and can change his mind.

IUP tax:

• Payment of the property tax called IUP tax, respecting the transfer.

deeds:

• Sign the final Deed of Conveyance (Escritura) before a Notary Public in Cape Verde. This is the document that gives the purchaser proper title to the property. The Deed must be scheduled with a minimum of 30 days' notice.

registration:

• Register the purchase at the local Land Registry and local Municipal Authority so that title is enforceable against third parties. In Cape Verde, subsequent to the signature of the Deed, the Notary will prepare and send a report to the local Municipal Authority regarding the transaction. The Municipality will then update its records accordingly and register the new ownership of the property. Notarial and registration fees and stamp duty will be approximately 2.5% of the property's attributed value. They are payable on signature of the Deed of Conveyance.

services contracts:

• A contract needs to be signed with service providers - water, gas and electricity. We can assist with this on request. Clients are advised to arrange for final meter readings prior to completion.

taxes:

• Transfer Tax - flat rate of 3% on the attributed value to be paid before the Deed of purchase and sale.
• Holding Property/Annual Rates - flat rate of 3% on 25% of the attributed value to be paid annually in April or in two instalments in April and September of each year.
• 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 and; (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 Capital Gains Statement (Declaracao de Mais Valias).
• Inheritance/Gift Tax - Any property transmitted by inheritance or by gift is taxed at a flat rate of 3% on the attributed value.

will:

• Once your purchase is complete you are advised to make a Cape Verdean Will. Although an English will is valid, obtaining probate in Cape Verde is easier if there is a Cape Verdean will in force.

associated partners:

Palácio Sottomayor
Rua Sousa Martins, n. 1 - 6.º Dto.
1050-217 LISBOA
Tel.: +351 21 312 15 50
Fax: +351 21 312 15 51

Contact nôscasa now or register your details online