Taxes and Costs of Buying Property in Cape Verde: What to Expect in Sal and Santa Maria
Before purchasing a property abroad, it is essential to understand not only the market but also the taxes and fees involved. Cape Verde is attractive not just for its climate and lifestyle but also for its clear and affordable property tax system.
Compared to many European destinations, the costs of buying and owning real estate here are relatively low. This makes Sal—and especially Santa Maria—a smart and accessible choice for international buyers.
Purchase Taxes in Cape Verde
The main tax applied when buying a property in Cape Verde is the Property Transfer Tax (Imposto Único sobre o Património, IUP).
The rate is generally around 1.5% of the property’s value, making it far lower than in many other countries.
This tax is paid once, at the time of purchase, when the property changes ownership.
Notary and Registration Fees
Every property purchase must be formalized by a notary and registered in the land registry. These services come with additional costs, but they are straightforward and transparent.
Notary fees: usually range between €500 and €1,000, depending on the complexity of the transaction.
Registration fees: relatively modest, typically a few hundred euros.
Annual Property Taxes
After the purchase, owners are required to pay an annual Property Tax (Imposto Predial).
The rate is very low, often 0.5% or less of the property’s value.
This ensures that ongoing ownership costs remain manageable compared to other international destinations.
Other Costs to Consider
In addition to official taxes and fees, buyers should also budget for:
Agency commission: generally covered by the seller in Cape Verde, but always clarify this in advance.
Maintenance and condominium fees: if you purchase in a residential complex, shared services (pool, security, garden) may add to annual expenses.
Utilities and services: water, electricity, and internet are reasonably priced, though imported goods can make living slightly more expensive than in Europe.
Why It’s Worth It
Cape Verde’s combination of low taxes and clear regulations makes it an excellent choice for property buyers. Compared to other popular destinations like the Canary Islands or Madeira, transaction costs in Sal and Santa Maria are far more affordable, which means more of your money goes directly into the value of your home.
Conclusion
Buying a property in Cape Verde comes with a transparent and affordable tax system, ensuring that international buyers can invest with confidence. With modest purchase taxes, low annual property costs, and straightforward legal procedures, Sal and Santa Maria stand out as ideal locations to secure a second home or profitable investment.
