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Buying a Property in Cape Verde

Cape Verde’s economy

Despite a lack of natural resources, Cape Verde has enjoyed steady, if unspectacular, development. Policies are in place to control public spending, reduce domestic debt and improve social services.

Traditionally, the economy was based on fishing and agriculture, the main crops being bananas, coffee, peanuts, sweet potatoes and sugar cane. However, services, in the form of shipping, transport and particularly tourism, which is growing at more than 20 per cent per annum, are now significant contributors. Fuel and textiles are the chief manufacturing industries.

Remittances from expatriate Cape Verdeans, forced by droughts, food shortages and lack of work to emigrate, still comprise a significant percentage of the economy.

Portugal is the largest trading partner, but Cape Verde also trades with other EU countries and the US. Cape Verde became a member of the World Trade Organisation in July 2008.

Communications

Telephone

Cape Verde’s telephone system was extensively modernised between 1996 and 2000, following partial privatisation, and is still improving. Cabo Verde Telecom (CVT) is the sole provider of fixed-line, mobile and internet services. Calls outside the archipelago are expensive.

CVT has roaming agreements with most UK and European mobile service providers, though costs tend to be high. Competitors are seeking to break into the market, which should result in lower charges.

Internet

Internet access is also expensive, and is currently available only on Sal, Santiago, San Vicente and Boa Vista. Several internet cafés have opened recently in major towns, particularly on Santiago and Sal. Larger hotels offer laptop connections.

Post

The postal is generally slow; services to Europe take over a week.

And finally …

As with any foreign property purchase, it is vital to retain an experienced, English-speaking lawyer who is familiar with the relevant conveyancing procedures. Since English is not widely spoken in Cape Verde, finding one may be a challenge, but if you are buying from a developer, they should be able to help.

Particularly in an emerging market, ‘caution’ should be your watchword. Do not buy a property just because you fall in love with it, or because it looks like a bargain. Take professional advice and guidance specific to your circumstances, especially in areas like the purchase process, currency exchange, potential rental returns, taxation and mortgages. Above all, never sign any document until you are satisfied that you understand what you are committing yourself to.

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More pages

Page 1: Cape Verde: an introduction
Page 2: Sal
Page 3: Financing your purchase
Page 4: Cape Verde’s economy

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