Taxes when buying property in Cape Verde Islands
The Taxes regarding Property can
be listed as the following:
- Transfer Tax – flat
rate of 3% on the attributed value to be paid before the Deed of
purchase and sale.
- Holding property/ Annual
Rates – flat rate of 3% on 25% of the attributed value to
be paid annually in April (or in two instalments in April and
September of each year)
- Capital Gains Tax –
(i) Capital gains regarding plots for construction are
taxable if their sale value exceeds a 100% increase of the value
at which they were initially purchased.
(ii) Capital gains regarding any other property are taxable if
their sale value exceeds a 30% increase of the value at which
they were initially purchased.
In both (i) and (ii), the capital gain is taxed at a flat rate
of 3% and should be paid within 30 days of the Deed, together
with the submission of a "Declaracao de mais valias" (Capital
Gains statement).
- Inheritance/Gift Tax
– Any property transmitted by inheritance or by gift is taxed at
a flat rate of 3% on the attributed value.
- Capeverdian Will
Once you have acquired the property, it is advisable that
you execute a Capeverdian will to deal with your property in
Cape Verde. Although an English will is valid, obtaining probate
in Cape Verde is easier if there is a Capeverdian will.
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