Investing here requires more than capital.

01

Land investment risk

Investing in land can carry additional risks compared with buying an apartment or a completed property. Records may be incomplete, boundaries can be contested and municipal allocation processes are not always transparent from the outside.

• ·Unclear title history
• ·Overlapping or competing claims
• ·Incomplete cadastral records
• ·Uncertainty around municipal land allocation
• ·Risk of informal or verbal agreements
• ·Delays in registration at the land registry
• ·Need for independent legal verification before any deposit

Land investments require additional due diligence. Investors should verify ownership, municipal status, boundaries, registration history and any competing claims before signing or transferring funds. In some cases, investors may encounter unclear land administration, competing claims or decisions that are difficult to understand from a European legal perspective.

02

Administrative delays

Procedures may take longer than expected. Timelines communicated at the start of a process are often indicative rather than fixed.

• ·Property registration
• ·Construction and renovation permits
• ·Tourism recognition or tourism licence
• ·Utility connections (water, electricity, internet)
• ·Import of furniture and building materials
• ·Tax registration (NIF, IUP, VAT where applicable)
• ·Municipal approvals
• ·Notarial processes
• ·Banking processes and international transfers

Timelines are often indicative rather than fixed. Investors should plan for delays and avoid relying on optimistic deadlines.

03

Local bureaucracy

Investors can be sent from one office to another and responsibilities are not always clearly defined. Documentation requirements can also shift between visits.

Investors may need patience and persistence. Administrative processes can involve multiple offices, repeated visits and unclear documentation requirements.

04

Importing goods

Importing furniture, appliances or building materials involves customs procedures, possible delays and extra costs. Budgets and timelines should always assume friction rather than a smooth flow.

05

Tourism recognition and rental operation

Operating a short-stay rental property requires local compliance. Depending on the property and the municipality, this can involve tourism recognition, registration, permits, tax obligations and ongoing communication with authorities. Assume that operating informally is not a durable strategy.

06

Corruption and integrity risks

As in many emerging markets, integrity risks exist. Our position is simple: proper legal verification is always cheaper than a shortcut that goes wrong.

As in many emerging markets, investors should be aware of integrity risks, informal expectations and inconsistent administrative practices. Payments, promises or shortcuts should never replace proper legal verification.

07

Local professional support

We strongly advise working with a small, trusted team on the ground.

• ·An independent local lawyer (advogado)
• ·A notary (notário / cartório notarial)
• ·A reliable real estate professional
• ·A technical inspector or engineer for physical due diligence
• ·A tax adviser familiar with Cabo Verde
• ·A trusted local contact for day-to-day follow-up

For higher-value transactions, land purchases or unclear legal situations, investors should consider working with a respected local lawyer who has credibility and experience with property transactions.

08

Patience and cultural expectations

Appointments, deadlines and responses do not always happen on the expected day. This is not personal, and it is not necessarily a warning sign. But it does need to be planned for.

Investors should combine professionalism with patience. Follow up consistently, document agreements in writing and avoid assuming that verbal assurances are enough.

09

Utility delays can postpone rental launch

A property may be delivered, purchased or furnished, but still not ready to receive guests if water or electricity is not properly connected or contracted. Delivery does not always mean rental ready. Electricity in particular involves more than signing a contract: a ramal, the physical service connection between the public network and the unit, may need to be paid for, executed and administratively registered before power flows normally. Water often depends on a rooftop tank filled from the mains. Supply can be affected by works, storms or pressure problems, and a water truck may be needed during interruptions.

• ·Ramal status: paid, executed and registered
• ·Electricity contract active and transferable
• ·Water contract active and transferable
• ·Rooftop tank capacity and last inspection
• ·Local backup water delivery options
• ·Written agreement on who pays for delays

Delivery does not always mean rental ready.