Cape Verde follows Portuguese law very closely. There is a Notary and registry system in place.
You will need to appoint a sworn translator to translate documentation for you.
A lawyer should always be appointed to check title deed and registration of property and to ensure your legal rights are protected at all times.
On finding a property you will put down a reservation fee or deposit this will usually be a around 10% of the purchase price although developers of off plans will have a different payment structure. Always ensure any deposits are refundable until you have secured any funding you require for completion. Mortgages and banks are few and far between in Cape Verde so be aware options will be limited using the property in Cape Verde for security. Interest rates are high in comparison to other jurisdictions.
Mortgages in principle can be obtained subject to property but a formal offer of lending can only be made after the property is known and evaluated by the bank. Banks rarely undertake formal valuations and will assess in general the property to be worth or below the purchase price being paid.
Costs of buying include:-
- Stamp Duty 3 % of purchase price
- Land registry 3% of purchase
- Notary fees are usually a set price
- Registry of loan and Notary fees 3% of lending
- Mortgage deed tax 3% of lending
- Bank arrangement fee
Product CV 1 Purchase Repayment
70% Repayment (Max 4 applicants)
Personal names only no companies
All nationalities considered
All Islands covered
Maximum age |
Age 65 |
Maximum LTV |
70% of valuation / valuations rarely if never exceed purchase price/ Valuations are likely to be less than purchase price. |
Maximum loan size |
N/A |
Maximum term |
20 years |
Repayment type |
Capital and interest |
Compulsory products |
Buildings insurance/ life insurance for older clients |
Bank arrangement fee |
1% of lending payable before completion |
Interest Rate |
6 Month Euribor |
Rate review |
6 monthly |
Income criteria |
Existing and new debt should not exceed 40% of gross income. |
Redemption penalty |
2% |
Credit search UK |
Yes |
Mortgage title deed tax |
3% of lending |
Notary and Registry fees |
3% of lending |
Title deed |
N/A |
Valuation costs |
€ 50 |
Buildings insurance |
Quoted before completion |
Mortgage placement fee |
1 % of lending |
Product CV2
PURCHASE 70%
(Max 4 Applicants)
Maximum age |
Mortgage must be paid in full by age 70 |
Maximum LTV |
70% of valuation 70 % of purchase price extended loan to values by negotiation |
Maximum loan size |
N/A |
Maximum term |
15 years standard up to 25 years by negotiation |
Repayment type |
Capital and Interest |
Compulsory products |
Buildings insurance |
Bank arrangement fee |
1% |
Interest Rate |
Annual Euribor plus 4.5% |
Rate review |
12 monthly |
Income criteria |
Debt must not exceed 33% of gross income. At present they are unlikely to assess existing debts. |
Redemption penalty |
2% |
Credit search UK |
No |
Property Location |
No restriction |
Mortgage title deed tax |
3% of lending |
Notary and Registry fees |
3% of purchase price |
Valuation costs |
Property up to € 200k = € 109 |
Buildings insurance |
On application |
Cape Verde products |
Maximum Percentage of purchase price subject to valuation |
Maximum Percentage of valuation |
Term |
Max Age |
Bank Fee |
Redemption penalties |
Repayment Basis |
Interest rate |
Product CV1 |
70% |
70% |
20 years |
65 |
1% |
2% |
Repayment |
Rates Euribor plus 2.8% |
Product CV2 |
Up to 100% |
70%/75% |
15 |
70 |
1% |
2% |
Repayment |
Standard rates |