Top 5 property investment tips for Cape Verde
In terms of property investment, Cape Verde is largely considered as the Caribbean of Europe. If you missed the boat for Bulgaria in 2007, your opportunity for maximum capital gain now resides in Cape Verde properties. The buying process and government laws in Cape Verde is fairly straight forward in fact more so than other countries to the point that overseas property investment is actually welcome, as Cape Verde seeks accession into the EU.
1. With any part of the process that requires a signature on your part, you will need the services of a sworn translator. Proerties-CapeVerde can certainly help you with that, as the language in Cape Verde is Portuguese being a former colony of Portugal.
2. According to the "Lei de Investimento Externo" a law passed in 1993 by the Cape Verdean government to encourage foreign direct investment, overseas property investors may benefit by taking a 5 years initial tax exemption from any capital gain in addition to the 50% reduction in corporate tax from 30% to 15% for the following 10 years thereafter.
3. As well as a sworn translator, you should appoint a local solicitor to guide you through the purchasing process for your property in cape verde. This is to ensure the land ownership is not under any dispute and that you are fully aware of what is included in the purchase price. As well diputes, the solicitor will also check that there are no restrictions to title to land ownership and charges registered to property. Properties CapeVerde are in pole position to ensure you have the right solicitors at your side.
4. Transaction fees will usually comprise of stamp duty at 3% of the purchase price, land registry at 3% of the purchase price plus solicitor’s fees, which on a typicall property worth £50,000 will around £3,500 which may sound competitive. However, in light of the favourable tax laws the purchasing costs are ultra competitive compared to other emerging property markets.
5. Payment structures for buying off plan properties in Cape Verde are as follows. Deposits on typical properties are around 10%. The initial payment is usually around 25% upon contract less deposit, 25% when the foundations of the building are in place, 20% when the windows are installed, 20% on tile installation and 10% on completion.
About the Author: Mikewrites for Properties Cape Verde , a Cape Verde property portal.