Property Investment in Cape Verde: A Complete Guide for Foreigners and the Diaspora in 2026

18 million tourists in 2024. GDP growth of 7.3%. Direct flights from several European cities. And a property market that is still relatively affordable, with strong prospects for appreciation. Cape Verde has become one of the most attractive destinations in the Atlantic for property investors, and in 2026, the outlook is even more favourable than it was two years ago.

In this guide, the S&D Consultancy explains everything you need to know before buying a property in Cape Verde: who can buy, what types of property are available, what the legal process involves, what taxes apply in 2026 – including the reform that replaced the IUP – and how property investment can pave the way to permanent residence in the archipelago.

1. Why Cape Verde attracts property investors

Cape Verde combines a number of features that are rare in the global property market:

• Sun all year round: more than 350 days of sunshine a year, with temperatures ranging from 20°C to 30°C – ideal conditions for tourism and holiday rentals
• Political and legal stability: a legal system based on Portuguese civil law, a well-established democracy and ranked 4th for good governance in Africa
• Tourism on the rise: 1.18 million tourists in 2024, up 16.5% on the previous year, with new European routes to be added
• Affordable market: flats in tourist areas from €70,000, which is significantly lower than in Portugal, Spain or Malta
• No restrictions on foreign ownership: Foreigners have the same property rights as Cape Verdean citizens
• No inheritance tax: The Cape Verdean tax system does not provide for inheritance tax, making it an attractive option for the transfer of wealth between generations
• Rental potential: The limited supply of quality accommodation creates opportunities for rental income from short-term lets, with guaranteed yields of 4.5% in some developments

2. Who can buy property in Cape Verde?

The simple answer: practically everyone. Cape Verde does not impose any significant restrictions on the purchase of property by foreigners:

• Foreign nationals may purchase residential and commercial property, as well as land for development
• Foreign companies may also purchase property, including for tourism projects
• You do not need to be a resident of Cape Verde to own property there
• There are no restrictions on the repatriation of profits generated by the property

There are, however, some specific limitations that are worth being aware of:

Important restrictions to be aware of before buying:

• Coastal zone: land situated within 80 metres of the coast may not be purchased, as it is public land. It may be granted under a concession for a period of 10 to 20 years, but may not be sold outright
• Agricultural land: may only be leased to, but not sold to, foreigners.
• Properties for Airbnb: purchasing a property for use on short-let platforms does not count as a qualifying investment for permanent residence (Green Card).

3. Step-by-step purchasing process

Buying a property in Cape Verde is relatively straightforward for anyone familiar with the Portuguese process. These are the main steps:

1. Obtaining your NIF (Tax Identification Number): This is mandatory for any property transaction. It can be obtained in person at the tax office or, for non-residents, via the Consular Portal through a tax representative.
2. Finding a property and negotiating: through an estate agent, a developer or your own network of contacts. Always check that the property is registered with the Land Registry and is free from any encumbrances or mortgages.
3. Hiring a local solicitor: It is strongly recommended that you check the chain of title, the title deed, the seller’s tax status and any charges on the property.
4. Letter of intent to buy and sell (CPCV): A preliminary contract setting out the price, terms and timeframe. It is usually accompanied by a deposit of between 10 and 30%.
5. Notarial public deed: carried out at the Notarial Registry Office. It requires the presence of both parties or a solicitor with notarial powers.
6. Registration in the Land Registry: Required by law. It guarantees your ownership and protects you against future disputes. It must be done immediately after the deed is signed.
7. Payment of transaction taxes: See section 4 for the new ITI and IPI taxes, which have been in force since January 2026.

Estimated total cost of the transaction: between 3% and 5% of the purchase price, including notary, registration and solicitor’s fees.

4. The new property tax system in 2026: the end of the IUP, and the introduction of the IPI and ITI

This is one of the the most significant developments of 2026 For those investing in property in Cape Verde: from 1 January 2026, the history The Single Wealth Tax (IUP) has been repealed and replaced by two new taxes, the IPI and the ITI, approved by the Law No. 55/X/2025.

IPI — Property Tax (annual tax)

The IPI is the annual property tax, replacing the capital component of the IUP. The the base rate is 0.1% regarding the property value — a very significant reduction compared with the IUP’s previous 1.5% figure. The valuation is now based on objective criteria and carried out by Municipal Valuation Committees.

To combat urban dereliction and property speculation, the IPI introduces surcharges for vacant or derelict buildings (at a rate of 25%, with an annual increase of 20%) and buildings with unfinished façades (10%).

Practical example: a flat with a property value of 5,085,503 CVE will pay around 4,322 CVE in annual IPI — compared with the 26,227 CVE it would have paid under the old IUP. A very significant saving for property owners.

ITI — Property Transfer Tax (tax on the purchase/sale of property)

The ITI replaces the transfer component of the IUP and is payable at the time of the deed of sale. The reference rate remains at around 1.5% of the transaction value. This is the ‘entry’ tax — paid once only at the time of purchase.

5. Taxes on income and capital gains from property

In addition to the annual IPI and the ITI payable on the transaction, there are other taxes that property owners in Cape Verde should be aware of:

Rental income

Rental income earned in Cape Verde by non-residents is subject to withholding tax of 20% on gross income. For residents, income is included in the IRPS and taxed on a progressive basis.

Capital gains on the sale

The sale of a property at a profit is subject to IRPS at 10% on the profit generated (the difference between the selling price and the purchase price, less costs). This rate applies to both residents and non-residents.

Tax exemptions for tourism projects

Properties linked to recognised tourism projects (with ‘Tourism Utility’ status) may benefit from exemption from IPI for the first 5 years. This benefit must be expressly applied for with the Tax Authority and is subject to compliance with specific requirements.

6. Where to invest: a profile of each island

Cape Verde is an archipelago comprising 10 inhabited islands, each with its own distinct property market. The choice of island should be in line with the investment objective:

Note on the Green Card: islands with a below-average GDP per capita (Fogo, Brava, Maio, Santo Antão) require a minimum investment of €80,000 to qualify for permanent residence. The islands with an above-average GDP (Sal, Boa Vista, São Vicente, Santiago) require €120,000.

7. Permanent residence through investment — the Cape Verdean Green Card

One of the most attractive incentives for foreign investors is the Permanent Residence Card through Investment, the so-called Cape Verdean Green Card. It is one of the most accessible routes to permanent residence in Africa.

Programme terms and conditions

• Minimum investment in holiday accommodation: €80,000 (islands with a GDP below the average) or €120,000 (islands with a GDP equal to or above the average)
• No requirement for actual residence: You don’t need to live in Cape Verde to retain your status
• Family included: spouse and dependent children covered at no extra cost
• Renewable every 5 years: provided that the property is maintained
• 10-year IPI exemption: Homeowners with a Green Card are exempt from annual property tax for 10 years
• Pensioners: Income of foreign origin received by pensioners holding a Green Card is exempt from personal income tax in Cape Verde
• The path to citizenship: After five years of continuous residence, it is possible to apply for naturalisation

8. Bank financing for buying property in Cape Verde

Bank financing is available in Cape Verde, but the terms differ from what European buyers are used to:

• Maximum funding: Cape Verdean banks generally finance up to 70% of the property’s value; the buyer must have a minimum deposit of 30%
• Interest rate: approximately 8% for foreign buyers, substantially higher than current European rates
• More favourable conditions for the diaspora: The 2026 State Budget provides for public guarantees and interest subsidies of up to 55% for Cape Verdean emigrants purchasing their first home
• Alternative: Many European investors choose to finance their purchase using their own funds or a mortgage in their country of residence, taking advantage of the lower interest rates

9. Pre-purchase checklist: what to check

Before signing any contract or transferring any money, always check the following points:

• Up-to-date Land Registry certificate — confirming who the owner is and whether there are any encumbrances or mortgages
• Certificate from the Local Council — confirming the property’s tax status (IPI up to date)
• Occupation permit — for properties built on or after a specific date
• The seller’s tax status — the seller must be in good standing with the tax authorities
• Detailed map of the area — check whether there are any neighbouring construction projects that might affect the property
• Legal status of coastal land — minimum distance of 80 metres from the shoreline
• Property agency agreement — check whether the agency is legally registered
• Tax identification numbers of the buyer and seller — required for the drawing up of the deed

Conclusion

The property market in Cape Verde is at a stage of increasing maturity: more tourists, more infrastructure, new flights and a reformed tax framework from 2026 onwards that makes property ownership more transparent and less costly in the long term.

For foreign investors and the Cape Verdean diaspora, the window of opportunity is still open; prices are affordable, rental yields are competitive and the route to permanent residence is one of the simplest in the world, starting at €80,000.

S&D Consultoria supports property investors in the whole process, from property searches to tax planning, from obtaining a tax identification number to applying for a Green Card. We are based in Mindelo, São Vicente, and have experience across all the islands and with the diaspora abroad.

For further information, you can also see: https://investidordadiaspora.cv/

Frequently Asked Questions (FAQ)

What is the minimum investment required to obtain permanent residence in Cape Verde?

The minimum investment in holiday property required to qualify for a Green Card (Permanent Residence Card) is 80,000 for islands with a per capita GDP below the national average (Fogo, Brava, Maio, Santo Antão) and 120,000 for the remaining islands (Sal, Boa Vista, São Vicente, Santiago, Sal).

Has the IUP really been abolished? How much property tax do I now have to pay?

Yes. The IUP was abolished on 1 January 2026 and replaced by two new taxes: the IPI (Property Tax), with a base rate of 0.1% per annum on the property’s assessed value — a drastic reduction compared with the previous rate of 1.5% — and the ITI (Property Transfer Tax), levied at the time of purchase and sale at approximately 1.5% of the transaction value.

Do I need to live in Cape Verde to keep my Green Card?

No. Cape Verde’s investment residency programme does not require any minimum period of stay in the country. It is ideal for those looking for a second home or a ‘plan B’ with no physical presence requirements.

Can I buy a property in Cape Verde without visiting the country?

Yes, provided the necessary precautions are taken. The purchase requires a notarised deed, which can be drawn up by a solicitor with power of attorney. S&D Consultoria can coordinate the process and act as your representative, handling your tax identification number (NIF) and providing legal and tax support. The registration of the property can also be handled locally by an authorised representative.

Is rental income taxed in Cape Verde?

Yes. Rental income earned in Cape Verde by non-residents is subject to a 20% withholding tax on the gross income. If there is a double taxation agreement between Cape Verde and your country of residence (as there is between Portugal and the US), you can avoid being taxed twice on the same income.

What are the advantages of setting up a company to manage the property?

Depending on the nature of the investment, setting up a limited liability company (Lda) or a sole proprietorship may be advantageous: it allows for the deduction of operating costs, potentially enables the application of more favourable IRPC rates (particularly for tourism projects), facilitates the management of multiple properties and simplifies the transfer of assets. S&D assesses on a case-by-case basis which structure is most efficient.