Julie's Properties

BUYING TIPS

The most important recommendation we can make to you is, do not sign anything until you have attained competent and independent legal advice. Deal only with a Government Licensed Estate Agent – Julie’s Properties – and a lawyer who is a member of the Law Society. Only a lawyer with experience in working with the departments of the official Cape Verde authorities and with the respective documentation has the knowledge necessary to act on your behalf. Julie’s Properties can introduce you to qualified professionals.

Buying a new property can be a daunting prospect with all the legal processes to consider and more so in a foreign country, where the language and purchase law is far different. However, with our help and a reputable legal advisor there will be no need for concern when buying your new property in Cape Verde.

We will guide and assist you through the buying process once you have found the Cape Verde property you wish to purchase. The next step is to contact a lawyer. Your legal advisor will require full information on the property, which we will provide.

The Buying Process – Purchasing a Cape Verde property is straightforward and recent changes in the laws have strengthened the legalities giving you greater peace of mind.

Property Reservation – Having chosen a property it is usual to sign a reservation agreement, in order that the property you wish to acquire may be removed from the property market. Reservation amounts vary between developers and property styles and range from €2,000 to €6,000. Reservation periods are rarely longer than 30 days.

Legal Representation – Once you have appointed a lawyer we recommend you assign them power of attorney. This allows them to apply for the necessary paper work on your behalf and will save you time and costs in the long run. This also avoids you having to return to Cape Verde every time a signature is required. The lawyer will check the following:

Land Registry – Conservatória do Registo Predial. A search will be made to check the land registry title at the local municipality. This includes the identification of the owner, the property description, mortgage, charges etc.

Tax Office - Repartição de Finanças. Every property must have a Caderneta. This is a taxation document that sets out among other things the rateable value. This valuation is important for determining the IUP tax (rates). A search will be made to ensure tax registration on the property and there are no charges that may adversely affect the property.

Municipal Council – Câmara Municipal. This is where information relating to construction authorisations is located. Where appropriate, checks on licenses and permissions will be made. This is also where the Habitation and Construction licences are obtained.

Your lawyer will apply for your fiscal number - Numero de Contribuinte (your personal taxation number) through the local Tax Office. Your fiscal number will be required for many transactions, including opening a bank account in Cape Verde.

After all the necessary checks have been made and satisfied your lawyer will proceed to:

Promissory Contract – Contrato de Promessa de Compra e Venda. A promissory contract is drawn up between purchaser and vendor. This contract is your promise to buy and the vendors promise to sell. At this stage a deposit is required, less any reservation fee paid. The contract will include the identification of the parties, the description of the property, the price, method of payment, payment terms and the agreed period for signature of the public deed (conclusion of the puchase).This is a legally binding contract and should you wish to withdraw from the purchase then you will forfeit the deposit. In the event that the vendor defaults, then they must repay the deposit.

Final Deed – Escritura. Your official property deed. The signing of the Escritura must be in the presence of a Notary official. All parties should attend the Notary office except in the case that the lawyer has power of attorney. The Notary will check and confirm the legality of the property documents. Proof of payment will be identified before the Notary.

Registration – Registo Predial. Once the transaction has been entered into the Notaries records the lawyer will take a copy of the deed and register the transaction at the land registry. This records your legal ownership of the Cape Verde property.

Purchase Costs – Notorial deed is approx. 2% of the property price as recorded in the deed.

Registration of the property is approx. 1.5% of the property price.

IUP – Imposto Único sobre o Património (Single tax on Patrimony). This is an obligatory tax of 3% of the property price payable to the Municipal Council within 30 days of the celebration of the final deed.

Property Expenses After Purchase – All Cape Verde properties are subject to an annual municipal tax (rates) also designated IUP. This is payable in April and can be effected in two payments, April and September. The current rate is calculated on a tax of 3% on 25% of the patrimonial fiscal value, as calculated by the Tax department.

Capital Gains – Should you profit from the sale of your property, you will be subject to the payment of a tax, also identified in Cape Verde as IUP. This is currently calculated by the application of a tax of 3% on the difference between price of purchase and value of the sale.

We strongly recommend that you prepare a will with your lawyer after the acquisition of a property. We can introduce you to banks to assist with financing a Cape Verde purchase and Currency Exchange companies that offer preferential rates for transferring funds to the Euro. Please contacts for further information.

Julies Properties also cover the Algarve Portugal www.juliesproperties.com