Until very recently, most people had not even heard of Cape Verde and the purchase of a Holiday or second home was restricted to a very few shrewd brave foreign investors. There are ten Cape Verde islands of which nine are inhabited. They are divided into Windward (Barlovento) and Leeward (Sottovento and they are located off the coast of Senegal West Africa. Traditionally the industry of the islands revolved around Fishing & Farming. Amongst the crops produced are ; Banana, Coffee, Peanuts & Sugar Cane. Fuel & Textiles are also produced on the Islands. Tourism, is the real growth industry though and many local people are now finding employment within this industry.
This islands represent a real island paradise, the weather is good all year round, and cool, ocean currents keep the weather bearable for most Europeans. These islands have had a fairly turbulent history and in 1975 Independence from Portugal was obtained with the help of many outside factions. Today Cape Verde is considered to be politically stable with low rates of crime and an excellent investment opportunity for purchasers of holiday or second homes. Many Investors are viewing these islands in the same way that Spain or even the Canary Islands were viewed over 25 years ago. Prices are very low but development is occurring at a very quick pace and property prices have been increasing at up to 20% per annum. It is anticipated within the next 10 years that Cape Verde will become a major Holiday destination and property is being constructed with this in mind.
Holiday Home Insurance Cape Verde – Holiday home insurance for your property, is now available to purchase from the United Kingdom. Assetsure are able to help offer insurance for an Cape Verde holiday home. The insurance will contain a broad range of perils which will be extended to include property owners liability insurance., If you are renting your property to tenants, this will need to be disclosed to the insurance company. Renting property whether on long or short term basis can be subject to rules and regulations and in some countries, there are even restrictions imposed on this activity. Before any property is purchased with this in mind, it is important to seek the advice of a good local solicitor who can alert you to any local requirements.
The Holiday Home Market in Cape Verde – The government of the islands has been a major force behind the developed of Cape Verde as a Holiday Home destination, realising it’s important location with regard to cross Atlantic sea and air lanes, it has set about a major expansion of both it’s port and Airport facilities, projects that are being partly paid for by the EU and the World Bank, making Cape Verde one of the largest per-capita aid recipients in the world. In any developing property market, the ability to have good international connections is of paramount importance. For most Europeans, these equate to being able to access cheap air fares and these are falling all the time. At the present moment, almost all of the holiday home property for sale in Cape Verde is new build, there is a healthy buy to let market although with a holiday industry very much in it’s infancy, rental of property on a regular basis cannot be guaranteed, however many purchasers are simply individuals who have recognised an opportunity to buy a holiday home for their own use at a price that can not be obtained pretty much any where else. The government are keen to receive foreign investment and have granted certain tax breaks to companies that have come and started business in the country, in recent years, this has seen a good deal of new hotels & restaurants being constructed.
Buying a Holiday Home in Cape Verde – For individuals who wish to buy property, the process is fairly straight forward and is largely based on the system in operation in Portugal. There is no leasehold property in the country, everything is sold on a freehold basis. As in most other countries, a verbal agreement must be reached first and at this point you will need to appoint your own solicitor to carry out the title searches etc. In order to buy property in Cape Verde, you will need to obtain a fiscal number from the tax office, this is not complicated and your lawyer will be able to help (This document is executed in Portuguese but you can ask for a copy to be translated in to your own language. The next stage in the process is for both parties to sign the Promissory contract of purchase and the buyer will have to make a 10% deposit of the purchase price although recently, this deposit amount does seem to have increased. At this stage, both parties are now contractually bound subject to the necessary searches. This document will set out all the usual details relating to the sale of the property, including full details, completion date, penalties, warranties etc. The document is signed in front of a notary whose survives will need again when the final deed called the Escritura has to be signed. Once you have completed this procedure, your ownership will have to be registered with the land registry and the local municipal authority and the notary will prepare a report for this purpose