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A guide to investing in the Cape Verde property market

Tuesday 2nd January 2018

Written by Mark Burns, Hopwood House

Cape Verde is located in the central Atlantic Ocean, made up of eight small islands and 10 volcanic islands, and has a population of approximately 550,000, across a total of nine islands. Cape Verde, of which was renamed locally to Cabo Verde, is a small African nation, situated 450km to the west of Senegal.
 
Investing in Cape Verde
 
The nation has seen economic reforms that, along with the stable democracy, are looking to increase the amount of overseas investment that it receives, especially in the knowledge that tourism accounts for approximately 25% of their GDP. The Government have opted to gain investment from overseas countries in order to aid their own economic growth, helping to develop the country. They have also shifted the focus onto key areas that they feel will most benefit them, including tourism, renewable energy, export-related industries and transportation.
 
The island has witnessed significant investment interest in recent times, becoming a very appealing place to investors from all around the world. All investments into Cape Verde are to be made in the local currency, Escudo, with returns paid in GBP, despite most places within the nation accepting Euros, mainly due to the fact that they are a former Portuguese colony.
 
The Government’s contribution
 
To help optimise the investment market, the government have backed the introduction of CTI (Cabo Verde Trade Invest), which is specifically for the promotion of investments, helping overseas investors to invest easily, providing one place that handles tax policies and the approval of all investment projects.
 
The Government are making a strong effort to encourage investment into property within their country, looking to simplify the process and applying all rights, duties and obligations to all overseas investors and residents alike. A big part of this is promoting the transparency of the country’s legal and regulation system, for which they are considered to be an example to the rest of Africa, having been the second highest ranked African nation in the Transparency International’s Corruption perception index in 2016. The country adopts Portuguese civil laws, and this provides investors with the right to private ownership of their property.
 
Cape Verde tourism
 
Tourism is an extremely important part of the Cape Verde economy, accounting for 25% of Cape Verde’s GDP, as previously mentioned. Cape Verde has become a very popular destination for tourists, with the hot weather, beautiful settings and low crime rates being just some of the main reasons why. The country has also developed new luxury hotels, has added casinos and ensured affordable flights, contributing to a surge in interest from all around the world.
 
The UK, Germany, France and Portugal are the biggest tourism contributors, making up almost 50% of Cape Verde’s tourism. The recent surge in interest following the turn of the century saw the total amount of tourists to Cape Verde go from just 150,000 people each year to more than half a million per year, between 2003 and 2015, and this is only expected to continue to increase, making property investment in Cape Verde an attractive option for investors around the world. 
 
For more information on investing in Cape Verde properties for sale, please contact Hopwood House.
 


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Editorial Contact Details - Conor Shilling
conor.shilling@angelsmedia.co.uk
0845 672 6000
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