Now is the time to buy property in Cape Verde…this is something we discovered in a previous article. In fact, we’ve explained why Cape Verde presents such a good investment as well as what returns you can expect. Now, we want to dig deeper into the country itself. When looking at a property for sale in Cape Verde, what sort of things do you need to consider before handing over your hard-earned money?
Foreign Investment Policy
First and foremost, Cape Verde very much welcomes investment from abroad. Through capital investment and job creation, they believe private foreign investment will allow the country to evolve into a sustainable growing economy. From here, the collection of tax revenues improves and the whole country benefits.
Back in 1989, the government went so far as to introduce legislation to attract investors. Twenty years later, it’s still applicable.
External Investment Law – Brought in four years after the main legislative framework, this law essentially widened and relaxed the laws to make Cape Verde an attractive location for investors not currently based in the country itself.
As part of this law, there are certain tax advantages for those who get involved with Cape Verde property investment. Initially, you’ll enjoy a five-year tax holiday. Then, for the next ten years, your corporate tax will be cut in half thanks to their 50% reduction scheme. If you’re willing to re-invest and continually contribute to the local economy, there may even be opportunities to extend these tax advantages.
Reduced Import Duties – If you choose a reliable service like Invest in Cape Verde, you don’t have to worry about building properties or investing in materials. Just in case you love your investment with us so much and want to start your own project, the materials required for construction will be exempt from import duties.
In terms of potential revenues, you have guaranteed transference which means the money can be moved out of Cape Verde in a bank account of another currency.
Residency Applications – If you’re looking at an apartment for sale in Cape Verde, you should also be aware that permanent residency is an option. As long as you invest a certain amount of money (or employ 13 nationals), the government agency responsible for the management of private foreign investing will grant a residency permit. This is the agency that will also deal with approvals and plans for projects.
As you can see, the foreign investment policy makes Cape Verde property investment instantly more attractive than many other locations. Especially when you go through Invest in Cape Verde, all the hard work is done on your behalf.
Protection From Over-Development
Another section of the law and legislation we think is important is the protection the whole country has from over-development. For investors, putting money into a growing tourist destination is a dangerous game. There seems to be a tipping point; as soon as investors recognize the location for its potential, everybody is investing money and the landscape of the location itself is ruined.
Thankfully, the Cape Verdean government decided they wouldn’t be the latest destination to fall into this trap. To keep its natural beauty and appeal, strict legislation was introduced and still applies today. Ultimately, only low density and low-level projects will pass through the planning phases. Every year, the number of properties built is restricted.
As tourism continues to grow, these people need somewhere to stay, and this is why it’s so valuable to have an ‘in’ like Invest in Cape Verde. We’re already in the market, and we already have access to some brilliant Cape Verde property investment opportunities. With luxury beachfront investments and a fixed annual income, it’s much easier than going it alone.
In order to accommodate the tourism and investment, the government has also invested in a new airport, Praia (Santiago Island). Also known as Nelson Mandela International Airport, this quite literally opens a new gate for investors from Europe. Taking many Airbus and Boeing models, experts consider this a new dawn for the country. As more tourists are accommodated, all those who invest will enjoy a boost to their ROI (or an increase in security for those with fixed annual income).
With a policy known as ‘Open Skies’, this means that any airline can fly to Cape Verde. With competition comes low airfares, with low airfares comes yet more tourists to the beautiful islands.
The NDP – What we’re seeing now is a product of Cape Verde’s National Development Plan (NDP) which stood between 2001 and 2005. Showing the desire and the motivation of the government, this plan allowed them to improve the infrastructure of the islands and, in turn, improve the experience for all who visit.
Under the NDP, many different programmes were introduced, and this led to improvements in the following sectors;
- Health Provision
- Sanitation Provision
In terms of transportation, this included all forms too; air, inter-island travel, roads, and maritime improvements.
Property Investment In Cape Verde
There really isn’t a better time to invest in a thriving tourist destination like Cape Verde. Not only is tourism growing each year, government legislation is in favour of investors and it’s not often we can say this.
If you want to buy property in Cape Verde, we have some fantastic opportunities at Invest in Cape Verde. With beachfront properties and high-quality hotels, you’ll enjoy a fixed annual income, secure freehold investment, five weeks of free use per year, and peace of mind that the hotel is managed by names with a proven track record in the industry.
After finding an investment, simply book an inspection trip and start earning regular income in no time. Allow us to be your Cape Verde property investment partner; the legislations are on our side and there’s nothing to suggest this will change any time soon!