Foreigners can buy property in Cape Verde, but the purchase should be assessed on more than just the price of the property.
For a non-resident investor, there are tax and administrative issues that must be assessed prior to the purchase: obtaining a tax identification number (NIF), capital gains tax, annual property tax, the structure of the purchase, the source of funds, and any future use or subsequent sale of the property.
The question, therefore, is not simply:
“Can I buy a property in Cape Verde?”
But also:
“What is the most appropriate way, from a tax and financial perspective, to go about this acquisition?”
It is at this stage that advance planning can help avoid unexpected costs and decisions that are difficult to rectify later on.
Foreign nationality, in itself, does not prevent the purchase of a property in Cape Verde.
However, before making the purchase, the investor must confirm the legal and tax status of the transaction and gather the necessary documentation for the acquisition and its registration.
Depending on the circumstances, the following may be necessary or relevant:
For a non-resident, these steps must be completed before the final signature.
A foreign investor wishing to carry out transactions with tax implications in Cape Verde should assess the need to obtain a Tax Identification Number — NIF.
The NIF is used in dealings with the tax authorities and in various procedures relating to investments and economic transactions in the country.
For those living abroad, the procedure must be prepared taking into account the required documentation and the taxpayer’s specific circumstances.
This is one of the key decisions to be made before the purchase.
A foreign investor may consider purchasing the property:
The best solution depends on the objective.
Where a property is purchased solely for residential, holiday or private use, a corporate structure may not offer any advantages.
When there is an economic intention — for example:
the analysis takes on a different character.
In such cases, the following should be assessed:
Should you buy in your own name or through a company? Tax planning for property investors
The aim should not be to set up a company simply because there is a property. The corporate structure must make economic and tax sense.
Since 1 January 2026, the new law is now in force in Cape Verde Property Transfer Tax — ITI, established by Law No. 54/X/2025.
The tax applies to transfers of property situated in Cape Verde and, in the case of transfers for consideration, is normally payable by the purchaser.
The standard ITI rate is 1%, although there are specific situations provided for in the legislation.
This means that a foreign investor should not simply take the price quoted by the seller at face value.
The total cost of the acquisition may include:
Before signing a contract, it is advisable to work out the total acquisition cost.
Since 1 January 2026, the former IUP has been replaced by the new one Property Tax — IPI.
The standard IPI rate is currently 0.1% of the property’s taxable value.
Therefore, after purchasing the property, the owner must also take into account the tax costs associated with retaining it in their assets.
For an investor, this should form part of the financial forecast, together with:
Not every property purchase qualifies for tax incentives.
However, there are schemes and projects that may qualify for specific tax incentives provided they meet the legal requirements.
In 2026, for example, measures were adopted relating to affordable housing, including relief from IPI, ITI, stamp duty and other charges for projects that meet certain conditions.
This does not mean that any foreigner who buys a house is automatically exempt from tax.
The benefits depend on the scheme, the project and compliance with the relevant requirements.
Similarly, certain investment projects may fall within the scope of broader incentive schemes, but the former Foreign Investor Statute no longer operates as a general tax benefit granted simply on the basis of the investor’s foreign nationality.
When a property is purchased to generate income, the analysis must also take into account the tax implications of its operation.
It is necessary to distinguish between situations such as:
Each model may give rise to different tax, accounting and administrative obligations.
Before making a purchase, investors should calculate:
expected gross return – costs – tax – financing – management = net return.
An advertised return of 8% or 10% does not necessarily represent the actual net return on the investment.
In this case, we are already dealing with a situation that is very different from a simple asset acquisition.
Where there is a structured operation involving:
buy → develop → build/refurbish → sell
the following should be analysed:
Building to sell in Cape Verde: taxation, corporate structure and the developer’s accounts
The future sale should also form part of the initial planning.
The tax framework will depend on factors such as:
Therefore, from the moment of purchase, documents relating to the following must be kept:
Incomplete documentation can make it much more difficult to correctly determine the taxable amount at the time of sale.
Property taxation in Cape Verde: IPI, ITI and capital gains explained
For those living outside Cape Verde, there are issues that are often overlooked when making a purchase.
International transfers and larger investments may require bank documentation and proof of the source of funds.
Depending on the structure of the investment, it may be advisable or necessary to set up a banking relationship in Cape Verde in advance.
Buying a property may give rise to tax liabilities in the country, particularly where the asset is used for business purposes.
A property initially purchased in an individual’s name and subsequently transferred to a company may give rise to new costs and tax implications.
It is often more efficient to define the structure prior to the acquisition rather than trying to sort it out afterwards.
Before the purchase, the investor must also ensure that the property is in order from a legal point of view.
Among other checks, the following may be relevant:
This part must be carried out by competent legal and technical professionals.
S&D operates in the field of tax, corporate, accounting and financial aspects of the investment, not as a property agency or estate agent.
An investor must set logic aside:
Advertised price = investment cost.
The calculation should be:
Purchase price
This analysis is particularly important when the purpose of the purchase is to generate income.
Before transferring funds or making a firm commitment, a foreign investor should confirm:
If the aim is to invest, it is not enough simply to ask “How much does the property cost?”
We need to ask:
“How much will it cost me to acquire, maintain, operate and eventually sell this asset?”
S&D Consultoria supports investors and non-residents in this area tax, business, accounting and financial of its investments in Cape Verde.
Support may include:
S&D it is not a estate agency nor does it act as an estate agent.
Our role is to support investors in structuring their investments and in meeting their tax and corporate obligations.
Are you thinking of buying a property in Cape Verde?
Before finalising the acquisition, assess the tax implications, the structure and the obligations associated with the investment.
Get in touch with S&D Consultoria.
PwC Worldwide Tax Summaries — Cape Verde, updated 29 May 2026.
Law No. 54/X/2025 of 6 June — Code on Property Transfer Tax (ITI).
Law No. 55/X/2025 of 6 June — Property Tax Code (IPI).
State Budget for 2026 — Law No. 69/X/2025.
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