Property investment in the Cape Verde Islands...

Sparkling blue waters and shimmering white sands define the islands that form the magical Cape Verde. The exotic locale is situated off the west coast of Africa, close to Senegal in the North Atlantic Ocean. With almost a thousand kilometers of coastline, Cape Verde is an ideal holiday destination that remains largely untouched by commercialism. The islands are divided in 2 main groups – the Barlavento or Northern islands of Boa Vista, Santa Luzia, Sal, Santa Vicente, Santa Antao and Santa Nicolau, and the Sotavento or Southern islands of Santiago, Maio, Brava and Fogo. The population of the island is less than half a million, but the influx of tourists causes that number to soar over some months of the year.

The string of volcanic islands is unoccupied, except for the ones mentioned above. The climate is described as a mix of temperate and tropical, since the temperature is a warm 75 degrees most days and there is little rainfall. The languages spoken are mainly Portuguese and Creole, with the population and cuisine being a delightful mix of European and African.

The reasons for overseas property investment in Cape Verde islands are numerous. Visitors pour in from Italy, the UK and Europe in particular with daily flights from Lisbon and the UK. Property prices remain competitive, especially in comparison to some of the more crowded holiday destinations such as the Caribbean. The government allows foreigners to own overseas investment property in Cape Verde. Additionally, the political stability of the country adds to its attraction as an investment destination. To provide incentive to investors, the government introduced a law in 1993 that provides a five year tax holiday for the foreigners who purchase overseas investment property in Cape Verde and a 50% tax reduction on corporate tax for the following 10 years.

The government is investing heavily in tourism, and is offering further sanctions and write-offs to foreigners who wish to enter the tourist market in the islands. Infrastructure development is continuing at a healthy pace in the small nation, which has one of the highest Human Development Indexes in Africa. There is plenty of opportunity for everyone in Cape Verde – whether you are looking for a villa, townhouse, condo, or a new development, you’ll find it here. There may not be as much scope for property development as in many other locations, since most houses are fairly recently constructed. Sal Island is among the more popular places in Cape Verde and has seen a lot of development over the past few years. In spite of this, a small condo can be purchased (at time of writing) on the island for less than $50,000.

Accounts in foreign currencies are easily opened in Cape Verde and many analysts expect competition to drive down airfares. A brand new international airport has been unveiled in the capital city of Praia, in Santiago. While tourism is a focus, the government is well aware of the importance of preserving the unique culture and environment of Cape Verde and has taken steps to ensure this principle is upheld during all construction efforts. That said, transportation infrastructure, electricity, water, sanitation, communication development as well as golf courses, marinas, luxury resorts and apartment complexes are coming up fast in this part of the world.