Cape Verde Buyers Guide
Overview:
Hotly tipped as the ?New Canary Islands? Cape Verde is an Archipelago consisting of 9 islands and 8 islets, just 450km off the west coast of Senegal.
Although still relatively unknown, Cape Verde is fast becoming recognized as an alternative to the somewhat over-developed Canary Islands. Experts predict it will be the next big holiday destination for the UK and Northern European markets, Cape Verde provides excellent opportunities for investors seeking substantial capital growth over the next few years.
Cape Verde was recently featured on Channel 4?s ?A Place in the Sun ? 20 best places to buy abroad?.
SO WHAT MAKES CAPE VERDE AN IDEAL INVESTMENT?
1) Environment ? The country is rich in natural beauty, history and culture.
2) Weather - With average temperatures of 25?C all year round, 10-12 hours of sunshine a day, a cool breeze from the Atlantic and very little rain (7 days last year!), Cape Verde provides Caribbean climate without the hurricanes!
3) Diversity - Cape Verde is made up of two distinctly different types of islands. Six of the islands, located more to the West, are characterized by their mountainous landscapes, whereas the remaining three are distinguished more by their long sandy beaches.
4) Stability ? Since gaining independence from Portugal in 1975, Cape Verde has proved to be incredibly stable, both politically and financially. The Cape Verdean Escudo is linked directly to the Euro.
5) Travel ? A New international airport on the island of Santiago has been recently been completed and direct flights from the UK are expected to be announced shortly. Cape Verde has also recently signed an ?Open Skies? aviation agreement with the US. Travel time from the UK to Cape Verde will be just 30 mins longer than to the Canary Islands. Caribbean climate without the jet-lag!
6) Prices ? With studio apartments for as little as 45,000 Euros, 2 bed apartments from 80,000 Euros and Villas from 130,000 Euros, Cape Verde is not only extremely affordable but has enormous potential for capital appreciation over the coming 3-5 years.
7) Rental Market ? With almost a 4x increase in the number of tourists expected to visit Cape Verde in the coming years and all-year round sunshine, investors can feel assured that there will always be a strong rental market for their property investment. In fact many developers offer to guarantee rental income for the first 2-3 years, in some cases as high as 6% p.a.
1. The Taxes regarding Property can be listed as the following:
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.
(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.
Capeverdian Will
Once you have acquired the property, it is advisable that you execute a Capeverdian will to deal with your property in Cape Verde. Although an English will is valid, obtaining probate in Cape Verde is easier if there is a Capeverdian will.
