The Cape Verde Islands are located on the west coast of Africa.
It is a top investment hotspot of the world while it currently undergoes huge development in
tourist infrastructures.
Property prices are at an all-time low and are sure to appreciate as Cape Verde begins to
establish itself as a top international holiday destination.
The island boast of stunning beaches, exotic welcomes private job creation and capital
investment and thereafter the collection of tax revenues.
Legislation to entice external private purchasing of investment property in Cape Verde was
introduced in 1989 and continues to attract investors to this day.
The ‘Lei de Investimento Externo’ (‘External Investment Law’) introduced in 1993 broadened and
enhanced the existing legislation to attract private foreign investment by non-Cape Verde
nationals.
This law includes a 5-year initial tax holiday and a subsequent tax reduction by 50% on
corporate tax (currently 30%) for the following 10 years.
These incentives can be extended indefinitely, as long as adequate re-investment is made.
Regarding tourism investment, an exemption is granted on import duties for materials necessary
for construction and installation of projects. All net revenues are guaranteed transfer out of Cape
Verde in full and foreign currency bank accounts are available.
Private foreign investors are entitled to residency in Cape Verde if they employ more than 13
nationals or invest more than approximately 35,000 Euros. Cabo Verde Investimentos (which
recently replaced Promex – the ‘Center for the Promotion of Tourism, Investment and Exports’) is
a government agency that is officially the front desk for potential investors; the agency also
approves projects and arranges further approval needed from the Government.
A healthy tourism industry is seen as the main area for development, targeted by the government
in its strategy for sustainable economic development.
It is essential that demand for the Cape Verde islands is created through high class
accommodation being available and there are plans for a 150 room 5-star hotel in the center of
Praia as well as a 135 room commercial hotel. Existing hotels are upgrading and expanding to
meet the demand which the availability of air travel will bring to the Islands.
The Cape Verde Islands are located off the coast of Africa. They enjoy great all year round
weather with an average temperature of between 22°C and 26°C. The climate of Cape Verde is
typically classified as “dry tropical” with low humidity.
There are only two seasons in Cape Verde; the dry season between November and July and the
humid season between August and October. During the wet season there are rain showers (about
ten inches of rain per year) and about seven hours of sunshine per day and in the dry season this
extends to roughly twelve hours per day.
The islands have an average wind speed of approximately eleven knots, which means there is
often a pleasant cooling breeze.
Water temperatures in Cape Verde range from 22°C to 27°C so swimming is enjoyable
throughout the year. Owing to certain natural factors the Cape Verde islands are unlikely to be
exposed to hurricanes like some of the Caribbean islands.
In general the climate enjoyed on the Cape Verde islands is in every way superior to that of the
Canary Islands, which have enjoyed a huge amount of success with tourism, the major part of
which can be attributed to climate.
Beautiful Tropical Beaches and Scenery
Cape Verde islands are the closest tropical islands to Europe and offer crystal clear waters and
white sandy beaches. These factors are important in helping to establish Cape Verde as a huge
tourist resort over the next few years.
The islands also have stunning mountain views and owing to the rainfall and climate, some
breathtaking tropical plantations. These too will provide European travelers with an authentic
feel of tropical adventure and offer an exciting alternative to other close destinations.
Economic Factors
The government of Cape Verde is investing heavily in developing tourism throughout the
country. The greatest return on investment (ROI) will be achieved through the huge expected
tourist interest in the Islands once the planned infrastructure is in place and property prices are
set to rise accordingly.
Growth Potential in Tourism
The growth potential for tourism on Cape Verde is immense. All indications show that over time
these islands will become as popular, if not more popular, than the Canary Islands. There are a
number of natural factors in Cape Verde that help tourism on Cape Verde in addition to the
economic factors listed here.
Traveling to Cape Verde is set to become easier with direct flights timed to coincide with the
completion of major parts of its tourist infrastructure such as hotels and holiday villages.
With its unique blend of European and African culture, luxury accommodation, short travel
times from Europe, beautiful beaches and mountain scenery and other economic features, Cape
Verde will be hugely popular.
This will add considerable value to property on the Islands.
Cape Verde offers a unique opportunity to property investors allowing them the opportunity to
buy property at very low prices in a very new emerging market.
.The government in Cape Verde is actively encouraging international investment in addition to
its natural features to develop the area into a Worldwide holiday resort.
Cape Verde offers a great opportunity for “pure” investors to secure property and land now and
sell in the short term to secondary buyers l
Cape Verde is an emerging market and at present has very little (but growing) tourism and so
there is currently far less demand for rental property in Cape Verde than other more traditional
holiday hot spots. However the reason Cape Verde offers such a unique and exciting opportunity
to property investors is that the government is dedicated to using the natural factors in Cape
Verde to turn the islands into a major international tourist resort in the very near future.
Price appreciates as more units sell: As more units are sold, the price of the remaining units rises.
Units sell faster when buyers are able to physically see them. There is often a phase payment
structure in place which mirrors the increasing value of the properties. To the early investor this
means that, should you decide to sell your property, it will be worth considerably more at this
stage than when you made your initial purchase and paid the 30% deposit.