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Cape Verde Homes

Luxury Townhouses in 2009

NEWS ALERT: Exclusive Luxury Townhouses are soon to be built with the most stunning ocean views in Sao Vicente. Spacious 3 bedrooms, 3 bathrooms with 2 En-suite and infinity pool. Be sure to complete the Property Form for more details and read more on Sao Vicente. These Townhouses are believed to double in value by 2011 when the International Airport will be open. Alternatively, you can request a property pack by calling our UK Office on 0208 517 8856.

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Cape Verde General Taxes

1. If I buy a property in Cape Verde, am I required to pay Stamp Duty?

Yes. The public deed of a property in Cape Verde is subjected to notary expenses and Stamp Duty at the rate of 0.2% of the real estate price.

2. If I rent out my property in ,Cape Verde will I be liable to pay Cape Verde income tax on the rents received?

Yes, a non-resident individual (generally someone who spends less than 183 days per annum in Cape Verde) is taxable only on their income obtained in Cape Verde. The net rental 'profits' will be liable to tax in CV at 20%.

3. How do I calculate my rental 'profits'?

The amount chargeable to IT will be the gross rents earned for the tax year less 10% of the gross rent (which is treated as maintenance and conservation expense) less a fixed amont of CVE.726. Property tax paid annually may also be deducted from the gross rents. If the property is only let out for part of the year, annual expenses should generally be pro-rated based on the period that the property is available for rent. Capital expenses i.e. improvements to the property, are not an allowable expense for IT purposes.

4. If I take out a loan to purchase the property, can I claim a deduction against my rental income in Cape Verde for my repayments?

If you have taken out a loan from a local Cape Verde bank to either purchase or improve the property, it will be possible to claim a deduction of 30% of the loan interest paid, upto a maximum of CVE.650, but no deduction is permitted for capital repayments.

5. If I rent out my property and make a loss, can I claim a deduction for this loss against my other income?

The provisions of the law in this area are unclear, however, it may be possible for rental losses in Cape Verde to be set off against other Cape Verde income. A non-resident of Cape Verde may not carry forward losses to set off against income in the following year.

6. If I sell my Cape Verde property and make a profit, which taxes should I pay in Cape Verde?
You are subject to the following taxes:

Capital Gain Tax at a rate of 15%.

Property Tax at a rate of 3% of the gain if:

In the case of Land: the selling price is more than double the purchase price.
In the case of Buildings: the selling price is more than 30% above the purchase price .

7. Are there any deductions I can claim to reduce the amount of gain taxable?

Yes. The gain is calculated by deducting the Purchase Price from the Selling Price. You may also deduct any sales related costs (e.g. solicitor's fees)

8. What are the tax implications if I gift my property during lifetime or bequeath it on death?

Where a property is gifted or transferred, a property tax is payable by the beneficiary at a rate of 3% of the tax registered value, which is generally the consideration for which the property is transferred. However, this amount is subject to revaluation by the authorities where they consider that the valuation is not equal to the normal market price.