Your guide to mortgages and finance in Cape Verde

Montaña Roja Estate Agents are both a Cape Verde Real Estate agency and a Costa del Sol property developer and we pride ourselves on our commitment in helping you find your perfect Cape Verde investment property or new home abroad. Our fully trained multilingual staff are always on hand to help and offer advice on purchasing your overseas property.

If you are looking to purchase Cape Verde property, then please read the following information that we have put together for prospective purchasers regarding Cape Verde mortgages and taxes.

Cape Verde or Cabo Verde is emerging as the new market on the International property scene. One of the few disadvantages of buying very early into a new market such as this, is that there are no real mortgage options offered from banks or developers to foreigners wishing to purchase a Cape Verde property.

There are Cape Verde developers making progress in offering mortgages, but of course as the stability of the area increases financially and mortgages become readily available, the best investment opportunities will already have gone. Property prices will no doubt have risen substantially by this stage and so as with every emerging market, its the very early investors who see the potential in the area and who therefore, stand to make the most substantial return on their investment.

Currently, it is possible in Cape Verde to achieve a mortgage on completion of the property. Unfortunately this does not help fund a property purchaser’s investment. The payment schedule for buying a property in Cape Verde is very different from far more established overseas markets. A typical purchase in Cape Verde will include 5 stage payments across the development period of the property. The property investor or home buyer will need to fund these payments but has the possibility of achieving up to a 70% "mortgage" on the valuation of the property when they sign the completion documents.

The external investment law or Lei de Investimento Externo which was introduced in 1993, enhanced existing legislation designed to attract further foreign investment by private non-Cape Verdean investors. The legislation includes a 5 year tax exemption and additional 50% tax reduction on corporate tax for the following 10 years.

For more detailed mortgage or tax information please contact us and speak with a Cape Verde advisor.

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