Golden Rules for overseas property purchases

Before you look at a property, it is useful to make a note of why you are buying i.e. Investment (capital gain or rental income), holiday home or maybe a permanent home. Make a list of what you want the property to have, location, how many bedrooms, type of building, outside space, pool, etc. You should take this list with you when viewing properties and see if the property ticks all the boxes.

Cape Verde national language is Portuguese. You should enlist the help of a sworn translator to translate all documentation. Always ensure that you fully understand what you are signing.

Conveyancing on the islands is very similar to the rest of Europe. You should appoint a local solicitor to help you through the buying process. The solicitor will check ownership (there are some land disputes ongoing on the islands), check the plans to ensure you understand what is included in the asking price and ensure that there are no outstanding charges against the property. The final step is to register the deed with the Notary.

The Town Hall can act as a good information source for information about town planning

5) Buying off plan - check the contract for

What quality of materials will be used in construction
Does the builder offer any guarantees on the finished building?
Does the finished building include things like bathroom fittings, kitchen, curtains etc?
Does the finished building come furnished?
Does the builder offer a guaranteed rental income period - if yes, read the smallprint
What is the timescale for the build?
Are there any penalties if the builder is late with completion?
What is the payment schedule?
What if the developer goes bust - what are the guarantees to get your money back?

6) Tax legislation

Cape Verde 's doors are open to private foreign investment as a means to create a sustainable growing economy through job creation and capital investment and thereafter the collection of tax revenues.

Legislation to entice external private investment into Cape Verde was introduced in 1989. The 'Lei de Investimento Externo' ('External Investment Law') introduced in 1993 broadened and enhanced the existing legislation to attract private foreign investment by non-Cape Verdean nationals and includes a 5-year initial tax holiday and a subsequent tax reduction by 50% on corporate tax (currently 30%) for the following 10 years.

These incentives can be extended indefinitely, so long as adequate reinvestment is made.

Regarding tourism investment, an exemption is granted on import duties for materials necessary for construction and installation of projects. All net revenues are guaranteed transference out of Cape Verde in full and foreign currency bank accounts are available. Any dispute between the Government and foreign investors can be decided upon by a sole-arbitrator appointed by the 'Center for the Settlement of Investment Disputes' in Washington DC .

Private foreign investors are entitled to residency in Cape Verde if they employ more than 13 nationals or invest more than US$35,000. PROMEX' - the 'Center for the Promotion of Tourism, Investment and Exports' is a government agency that is officially the front desk for potential investors; the agency also approves projects and arranges further approval needed from the Government.