Access to Land and Real Estate in Cabo Verde

For investors targeting sectors like tourism, renewable energy, fisheries, or infrastructure in Cabo Verde, securing access to land and real estate is a foundational step. Unlike Mozambique's restrictive DUAT (Direito de Uso e Aproveitamento da Terra) system—where all land is state-owned and only use rights are granted without full ownership—Cabo Verde offers a more investor-friendly framework. Private property ownership is constitutionally protected, allowing foreigners to buy and own real estate outright, with no major restrictions. This openness, supported by Legislative Decree 2/2007 (Land Law), the Civil Code, and reforms like the Millennium Challenge Corporation (MCC) Compact (2015-2017), has boosted tourism-driven development on islands like Sal and Boa Vista. As of 2025, ongoing digitalization of land registries via the Land Management Information and Transaction System (LMITS) further streamlines processes. This guide details the legal basis, eligibility, and procedures for investors, emphasizing Cabo Verde's emphasis on transparency and economic growth.

Land Ownership in Cabo Verde

Cabo Verde's Constitution guarantees the right to private ownership, distinguishing it sharply from Mozambique's state-centric model. Land and real estate can be fully owned, bought, sold, mortgaged, or inherited by individuals or entities. The state retains oversight of public domains (e.g., national parks, coastal zones), but private transactions are free-market driven. Key reforms, including MCC-funded boundary clarifications and LMITS implementation on high-potential islands (Sal, Boa Vista, São Vicente, Maio), have registered over 100,000 parcels, reducing disputes and enhancing title security. This has unlocked tourism investments, where real estate contributes to 25-40% of GDP.

What Governs Access to Land and Real Estate?

Access is regulated by:

Constitution and Civil Code: Affirm private property rights for all, including foreigners.
Legislative Decree 2/2007 (Land Law): Outlines acquisition, use, transfer, and registration of land rights.
Urban and Rural Regulations: Differentiate processes; urban areas (e.g., Praia) use municipal systems, while rural (e.g., Santo Antão fisheries) involve provincial cadastres.
Investment Code (2012): Provides incentives for foreign projects, including expedited permits for tourism or renewables.

All transactions must be registered with the Conservatória do Registo Predial (Land Registry Office) for enforceability. Digital tools like LMITS have cut registration times from months to weeks.

Eligibility for Land and Real Estate Acquisition

Cabo Verde treats domestic and foreign investors equally, with no residency or local partnership mandates—unlike Mozambique's 5-year residency for individuals or investment approvals for corporates.

Individuals

Foreign Individuals: Full eligibility to purchase without restrictions. No minimum stay required; many acquire beachfront villas on Sal for second homes.
Domestic Individuals: Same rights, with streamlined processes for locals via municipal offices.

Corporate Entities

Foreign Corporate Persons: Can own land outright if registered in Cabo Verde (e.g., as an Lda subsidiary). No equity caps; 100% foreign ownership allowed in most sectors.
Domestic Corporate Persons: Direct access, subject to standard registration.

Local Communities

Communities hold collective rights for traditional uses (e.g., agriculture on Fogo), with consultations mandatory for large projects to protect customary claims.

Restrictions on Land and Real Estate

Public Domain Areas: Protected zones (e.g., Cabo Verde Natural Park, coastal dunes on Boa Vista) prohibit private ownership; special use permits are issued for eco-tourism or renewables.
Special Permits: For sensitive areas, investors apply for temporary concessions (e.g., 10-50 years) via the Ministry of Environment, analogous to Mozambique's special licenses but with ownership potential post-lease.
Zoning Laws: Urban plans in tourist hubs like Santa Maria (Sal) limit high-rises; renewable projects (targeting 50% by 2030) get fast-tracked approvals.

Application Process for Land and Real Estate Acquisition

The process is straightforward, often completed in 1-3 months, faster than Mozambique's 3-12 months. Engage a notary and lawyer early; Pro-Empresa (investment agency) offers one-stop support.

Property Search and Due Diligence Identify land via real estate agents or LMITS portal. Request a Certidão de Registo Predial (Property Registration Certificate) from the Land Registry to verify title, boundaries, and encumbrances.

Requirements: Proof of funds; for foreigners, passport and NIF (Tax ID). Timeline: 1-7 days. Cost: CVE 1,000-5,000 (~€9-45) for certificate.
Promissory Contract Sign a preliminary sales agreement (Contrato Promessa de Compra e Venda) before a notary, outlining price, terms, and deposit (10-30%). This binds parties legally.

Requirements: Notarized signatures; power of attorney for remote buyers. Timeline: 3-10 days. Cost: Notary fees ~0.2% of value; stamp duty CVE 2,000 (~€18).
Final Deed and Payment Execute the Escritura (Deed of Conveyance) before a notary, transferring ownership upon full payment. Pay transfer taxes here.

Requirements: Bank transfer proof; legalized foreign docs (apostille). Timeline: 1-2 weeks. Cost: 2% Property Transfer Tax (IMT); notary ~1% of value.
Registration Register the deed at the Land Registry and Municipal Authority for third-party enforceability. LMITS digitizes this for quick updates.

Requirements: Deed, tax receipts, survey map (Planta de Localização). Timeline: 7-30 days. Cost: Registry fees 0.5-1% of value; annual IUP (Property Tax) 0.5% of assessed value.
Post-Acquisition Formalities Obtain NIF if not held; apply for utilities/building permits via MICE (Ministry of Industry). For incentives, submit to Pro-Empresa.

Duration: Ownership is perpetual and heritable; leases for state land up to 99 years, renewable.

Considerations for Investors

Investment Approval: Pro-Empresa fast-tracks for tourism/renewables; MCC reforms ensure clear titles, boosting confidence (e.g., 40% GDP from tourism).
Timelines: Urban buys (Praia) take 1-2 months; rural (Maio) up to 3, with community consultations.
Costs: Total extras ~6% of price (taxes, fees); e.g., €100,000 property adds ~€6,000. Mortgages rare for foreigners (high rates); cash preferred.
Challenges: Legacy disputes from pre-2009 informal titles; use LMITS-verified properties. Scams minimal but verify via registry.
Incentives: "Green Card" permanent residency for €80,000+ investments in low-GDP areas (e.g., Maio) or €120,000+ in high-GDP (e.g., Sal); tax exemptions on IUP for retirees.
Urban vs. Rural: Urban (Mindelo) faster via municipalities; rural needs cadastre surveys but offers agri/fishery potential.

Cabo Verde's pro-ownership model, enhanced by digital tools and incentives, makes it a prime spot for real estate-driven growth. Consult Pro-Empresa or local notaries for tailored advice.