Vilaverde Santa Maria - Villas, Townhouses, Apartments in Cape Verde Islands

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Frequently Asked Questions

	Since our launch of Vila Verde, we have received numerous requests for information. We have compiled a list of General, Legal and Tax questions which we will add to as we progress.
	Buying property in Cape Verde is a simple process (when done correctly), follows the Portuguese model and has some local specifics. The property market has only recently opened to foreign investors and the authorities are experiencing new demands on their resources. This sometimes leads to delays or frustrations, especially if you have invested in other countries where the systems are well established. It can also be dangerous for the unwary if they deal with the wrong people or do not do a thorough due diligence.
	Please feel free to contact us with your questions if they are not covered here

Why should I buy from Tecnicil?
	We keep our promises. We are responsible to you, to Cape Verde and its people and ultimately to ourselves, to deliver what we promise. After all, we want you to tell everyone, including us, of your experience when investing with Tecnicil.

Are there any restrictions on foreigners buying property in Cape Verde?
	No, the Cape Verdean government welcomes foreign investors. More importantly, you will be treated as a local and subjected to the same laws.

What makes Cape Verde such a good investment?
	Cape Verde is a stable democracy with a growing economy, measured between 8-10% per year. With Tecnicil, you also benefit from the inherent guaranteed quality of your investment, capital growth and rental yield.

Is the property freehold?
	With Tecnicil, yes. Whatever investment you are considering in Cape Verde, always check:
	Full title is available Planning approval has been granted The developer has a building licence There are no outstanding debts on the property
	Always ask for visual proof or get your lawyer to verify that these are legitimate.

Is it advisable to use a lawyer?
	Always, and choose an independent lawyer to prevent any conflicts of interest and to represent you in your absence. There are many good lawyers in Cape Verde who speak English and can guide you through the process (see "Legal" section).

How do I buy a property from Tecnicil in Vila Verde?
	After you have decided on the type of property you want to buy, we advise that :
	You place a reservation deposit to prevent your property being sold to another investor You commit to your programme of stage payments You only sign the Deed of Sale ("Escritura") when you are satisfied we have delivered on our promises

Are mortgages available?
	These are now generally available for non-residents although the interest rates are higher than those of Europe. We can provide you with information of the banks who are offering these facilities or you can choose your own sources.

Are any discounts available?
	Discounts are only available when you pay a higher percentage of the price in your initial stage payments, prior to the start of construction. You can ask your agent to explain these to you or you can contact us direct.

Are the property contracts assignable?
	All of our contracts for purchase are fully assignable, after permission from Tecnicil, which will not be unreasonably withheld.

Are there any bank guarantees for our money?
	Your first two stage payments, prior to the start of construction, are covered by a bank guarantee for 50% of your invested monies with Tecnicil.

What happens if Tecnicil goes bust or fails to deliver our property?
	Tecnicil is a solid, reputable Cape Verdean company, with a ten year track record of developing quality projects, and holds considerable assets. Should either of these events happen, one of several solutions under Cape Verdean law is that every investor is entitled to receive DOUBLE (200%) of all monies invested (part of the Tecnicil "Contract Of Purchase and Sale").

How much should I allow on top of the purchase price for additional costs or fees?
	We recommend that you budget for an additional 6-8% of the property purchase price for payment of fees and taxes.

Can I rent out my property?
	There is a Property Rental programme offering guaranteed returns or you can choose to do your own.

Who will take care of my property when I am not there?
	There is a full Property Management programme in place to ensure that your property is well cared for in your absence.

Can I open a bank account in Cape Verde?
	Yes and we can introduce you to the local banks. It usually takes less than one hour.

When does construction of Vila Verde start?
	Vila Verde construction will begin in September 2006.

When will Vila Verde be completed?
	The anticipated date of delivery June 30th. 2008. We allow eighteen months for the construction of your property from the start date agreed on the signing of your Contract of Sale and Purchase.

Is Vila Verde being built in phases?
	Yes and the launch of sales for the first phase began on 17th. March 2006. We have been very encouraged by the initial uptake of properties and we expect to have the second phase launch within two months.

Is Vila Verde beachfront?
	The sea is roughly 300 meters away from Vila Verde at its nearest point. This distance helps to protect against salt spray and sand blown by the breeze.

Who is responsible for the connection of utilities?
	Tecnicil is responsible for the delivery of utilities to every property. For connection, you will sign an individual contract with each provider for the supply and payment of their services, just as in your own country.

How can we furnish our property in Vila Verde?
	You can do this yourself if you wish or we can provide full furniture packages to satisfy your requirements, whether you want to live in or rent out.

Are there lifts in the apartment blocks?
	Yes, each apartment block has lifts for use by the residents. Furthermore the resort is barrier free.

How secure is the resort?
	There is 24 hour security on Vila Verde, both manned and CCTV. Access to Vila Verde is controlled but not restrictive.

Legal Questions:

What are the main risks when I buy property in Cape Verde?
	Always check that the property you are intending to buy has:
	Full legal title i.e. does the developer own the land and is this transferable Planning permission Building approval No outstanding debts or liens on the property
And that the developer has the correct building licence. Ask to see the relevant documents before committing to any investment.

Are there any instance when I can lose my property or land?
	Only in case authorized by the Cape Verdean constitution viz. for nationalization, demands for public service, or in cases of exceptional need to safeguard national interests. In all instances, just compensation will be paid to the owner.

How do I legally buy real estate property in Cape Verde?
	The common way to buy property in Cape Verde is through the completion of a "Contract of Purchase and Sale" between the seller and buyer, before a public Notary. This contract must be in the form of a public deed which guarantees transparency, certainty and security to the transaction.

Is it advisable to have a lawyer?
	We would always recommend that you have an independent lawyer. The official language of Cape Verde is Portuguese and you should choose a lawyer who is bi-lingual, can practice Cape Verdean law, can guide you through the process and carry out your instructions. Contact the Bar Association of Cape Verde: Ordem dos Advogados de Cabo Verde Tel Nos: + 238 261 9755/6 Fax: + 238 261 9754

Should I grant a Power of Attorney?

Yes, unless you intend to be present in Cape Verde to sign the Promissory Contract, the Deed ("Escritura") on completion and to obtain a Cape Verde Tax Card.
If you choose to appoint a lawyer outside Cape Verde e.g. in the United Kingdom, the Power of Attorney must be completed in Portuguese (get a local translation) and must be:

1. Signed in front of a Notary Public
2. Endorsed (an "Apostille") by the relevant authorities in your own country
3. Submitted for legalization by the Cape Verde Honorary Consul

The procedure must be followed in this order or the Power of Attorney may be invalidated.

What should I expect a lawyer to do on my behalf?
	Under your instructions, your lawyer should:
	Complete the relevant searches at the Land Registry and local Municipal Authority offices for charges against the property or restrictions on title. Check that the property has a valid permit of habitation.* Obtain for you: "Certidao do Registo Predial" -certificate from the land registry. "Planta de Localizacao" - official land registry map showing the property's exact location. "Certidao Matricial" - Tax Certificate.
	(*If the property is not registered, your lawyer needs to obtain: "Certidao Pela Negativa" - a certificate confirming that the property is not registered to any person. "Certidao Matricial para o Efeito" - a certificate from the tax authorities confirming the tax certificate can be issued.
	In all cases, it is essential to make sure that the property can be both legally occupied and transferred to new ownership.)
	Check that there are no outstanding taxes, debts or bills on the property. Apply for a Cape Verde Tax Card and NIF ("O Numero de Identificaçao Fiscal") on your behalf. Ensure that the contract specifies all the terms and details of the property purchased (see Q.8.). If these are not included, the lawyer may arrange for these to be added. With your approval, sign the Promissory Contract of Purchase and Sale ("Contrato Promessa de Compra e Venda") in the presence of a Notary Public in Cape Verde. On completion: o Pay the property Transfer Tax. o Pay the Notary's fees o Pay the Registration fees o Pay the Stamp Duty o Sign the Deed of Conveyance ("Escritura") in the presence of a Notary Public after the thirty day notice period, which confirms formal transfer of ownership of the property.
	The Notary reports the transfer of ownership to the local Municipal Authority, who will update their records by registering the new owner. It is also advisable for you to draw up a Will in Cape Verde even if you include your property in your Will in your own country.

What safeguards are there to protect invested monies?
	The common way to buy property in Cape Verde is through the completion of a "Contract of Purchase and Sale" between the seller and buyer, before a public Notary. This contract must be in the form of a public deed which guarantees transparency, certainty and security to the transaction.

What is the language of the contract and what should it contain?

The official language of Cape Verde is Portuguese. A good developer will always offer a translation in English to ensure that you understand the content.
The contract should specify all salient terms and details and as a minimum should include:

Standard Terms and Conditions

Start and completion dates

Warranties or guarantees

Payment method

Handling of any retentions

Procedures for correcting defects(snagging)

Procedures for Breach of Contract

Copies of all Certificates (see Q.4)

NIF of both seller and buyer

Copies of ID/passports or commercial registration documents

Copy of Power of Attorney

Tax Questions:

What are the taxes relating to property in Cape Verde?

	Transfer Tax (IUP)	3% of the attributed value
	Annual Property Tax (Annual Rates)	3% on 25% of the attributed value, which can be paid in one or two instalments
	Capital Gains Tax	1. On land sold for construction, is taxable if the sale price is greater than 200% of the original purchase price 2. On any other property, is taxable if the sale price exceeds 130% of the original purchase price Capital Gains Tax ("Mais Valia") on property is 3%, based on 70% of the increase in value, excluding the allowances detailed in (1) & (2) above. Taxes should be paid within 30 days of signing the Deed. At the same time, a Statement of Capital Gains ("Declaracao de Mais Valais") must be submitted to the tax authorities.
	Inheritance Tax	3% of the attributed value
	Gifts of Property	3% of the attributed value

Disclaimer
	This information is given as a guide and does not constitute any part of a contract or legally binding document. Always take legal advice from a qualified lawyer before entering into any legally binding contract.