Cabo Verde Property Tax Guide 2026

Overview — Property Taxation in Cabo Verde

Property taxation in Cabo Verde is administered by the Direção Nacional de Receitas do Estado (DNRE) and municipal authorities. Transaction taxes include stamp duty (Imposto de Selo) on transfers. Annual taxes include the IMI on all real estate. The notarial system plays a central role in property transactions — all transfers must be executed by a notário who is responsible for collecting and remitting stamp duty. Buyers should budget for total transaction costs of approximately 5–10% of the property value including notarial fees, stamp duty, and registration costs. Cabo Verde allows foreign ownership of property, making it attractive for international buyers seeking holiday homes or investment properties in the islands.

Stamp Duty on Transfers — 3–5%

Stamp duty (Imposto de Selo) is the primary tax on property transfers in Cabo Verde. It is calculated at rates between 3% and 5% of the higher of the purchase price or the official market value. The exact rate depends on the type of property and the transaction. The duty is payable by the purchaser at the time of registration of the deed of sale. The transfer must be formalised through a notário. Late registration attracts penalties and interest. First-time buyers of residential property may qualify for reduced rates. Certain transfers may be exempt, including transfers between spouses and transfers in inheritance proceedings.

IMI — Annual Municipal Property Tax — 0.5–2%

The Imposto Municipal sobre Imóveis (IMI) is an annual property tax levied by municipal authorities. It is calculated as a percentage of the cadastral value (valor patrimonial tributário) of the property:

• Urban properties — 0.5% to 1.5% of cadastral value
• Rural properties — 0.5% to 0.8% of cadastral value
• Luxury properties — up to 2% depending on municipal rates

The cadastral value is reassessed periodically by the tax authorities. IMI is payable by the property owner regardless of whether the property is occupied or rented. The tax is relatively modest compared to the market value of the property. Non-payment can result in penalties and enforcement action including seizure of rental income. Municipalities may offer reduced rates for properties in need of renovation or in designated urban regeneration areas.

CGT on Property

As covered in the capital gains guide, gains from property disposal are subject to CGT at 10% for individuals. The gain is calculated as the difference between the sale price and the acquisition cost (including improvement costs and transaction taxes). The principal residence exemption may be available if the property has been occupied as the main residence and the proceeds are reinvested in another principal residence within a specified period. Property held for more than 15 years may qualify for a phased reduction in the taxable gain.

FAQs

What are the total transaction costs for buying property in Cabo Verde?

Buyers should budget for 5–10% of the purchase price including stamp duty (3–5%), notarial fees (2–4% typically), and registration costs. Total costs are moderate compared to many other jurisdictions.

Do non-residents pay the same property taxes?

Yes, non-residents are subject to the same IMI and stamp duty as residents. There are no additional surcharges for foreign ownership. However, non-residents should appoint a local fiscal representative for tax compliance.

Are there tax incentives for property renovation?

Cabo Verde offers certain incentives for property renovation and tourism-related real estate development, including temporary IMI reductions for renovated properties and reduced stamp duty on first-time acquisitions.

Disclaimer

This guide provides general information about Cabo Verdean property tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Cabo Verdean notário or tax advisor for advice specific to your situation. InvestmentKit does not provide tax advice.