BUYING LAND CAPE VERDE

4.Land Selection
By now you should already know basically what it is you're looking for. The availability and prices of land in Cape Verde differs from Island to Island. Sal still attracts the most foreign investment and most tourists annually. Considered by many to be still the true tourist's destination within the Cape Verde Islands. Other Islands such as Boa Vista & St Vicente do have potential to rival Sal, possibly to surpass it as the top tourist destination but it is generally accepted they are a considerably longer term investment for now and are a some years away from being able to receive the amount of tourist to justify extensive infrastructure spending.

This will appeal to some. If you have done your research you will have a good idea of which Island and why. The main basic way in which the islands differ is access and therefore people. St Nicolau is very beautiful but can only be access by boat or internal flights, TACV, Haliycon or Cape Verde express. The same can be said for Brava, St Anton, Maio, & Fogo all of which are beautiful in their own way. Santiago, where central government meet in the capital Praia, is one of the larger Islands. Whichever of the islands you chose to purchase on the actions you take should not vary. Find out who your neighbours might be. Make sure you aware of any future developments in your chosen area. Golf course or community housing, both will have an impact on the future value of you land.

5.Selling Agents
There are a lot of Internet agents selling in Cape Verde and few represented on in Cape Verde. Not all agents sell land. Do research on who is represented on the ground and who is and Agents agent, or quite simply a middle man. Normally in Cape Verde, the closer you can get to the actual owner the lower the price. Visit as many Sales Agent offices as you can, the most sales offices are in Santa Maria, Sal.

Most of the agents will have land to sell on all islands in Cape Verde. When looking for land, often you will find 2 or 3 agents will the same lands for sale, talk to them all; ask for their opinions, (if they're not already telling you). This is also another good time to see if your lawyer is a high-quality one. Ask for a list of 5 lawyers they would recommend. If you go through an agent, get them to get a discounted price for you, even ask them to cut something out of their commission, most agents can be persuaded to do this.

6.The purchase
The conveyance system in Cape Verde is similar to Portugal. All properties are sold free hold. Generally the process runs as follows, a verbal agreement with an agent or owner. Sign a reservation agreement which should outline price of the land, plot description, payment terms and time scale. This is also the time to start parting with your money in the form of a deposit, normally between 5%-10% of the purchase price. Next your lawyer has to earn hos money, he must locate and validate several documents relating to the legality of ownership of the land.

The certidao matricial (tax certificate), planta de localizado (Official location map indicating exact location, and all the relevant details as to what you can do on the land such as construction density, height and other development restrictions. (Recently the government has allowed a larger density on development land; make sure your lawyer has the most up to date planta de localizado so you can be sure as to what can be built on the land.) The certidoa do registo predial (land registry certificate) and last but by no means least the Promissory contract or Contrato promessa de compare e vende.

The promissory contract will set out the exact terms of the purchase, giving much the same information as the reservation agreement but in greater detail. On signing the promissory contract you would expect to pay the first instalment of the purchase, (depending on terms you agreed when signing the reservation agreement) normally amounting to between 30% and 50% of the land purchase price. The final payment may be up to 3 months later, at this stage you will have to sign at the notary the land in your name or company's name. You should be vigilant throughout the process, keep copies of everything, ask your lawyer to check and recheck all documents, they will be in Portuguese. From having clear title to signing for the deeds you must be sure.

Legal representation in the form of power of attorney (PoA), will enable your lawyer to sign the deeds in front of a notary and make final for you. This is often a better idea than the expense of a wasted trip down should the notary not be able to accommodate you at that time. Make sure the PoA is restricted to the actions of purchasing the plot, not your entire activities in Cape Verde. It should be another 30 days before the new ownership can be registered in the land registry and tax office. The purchasing process in Cape Verde will seem strange, mostly because it is different from the UK and Ireland and a little because it is strange. Be meticulous about the facts, but also be prepared to be patient.

7.Fees
The fees for land transaction are relatively simple and clear. A flat rate of 3% of the purchase price is paid as transfer tax. Registration fees were changed in January of 2010 to a flat fee of around €210 per plot of land regardless of its size or value. Notary fees and stamp duty add up to a further .1% of the purchase price. Your lawyer will want between 2.5% - 5%, you can expect to add around 8% to 10% onto the price of your land.

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