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Lawyer & Representative of Cape Verde Government Minister Agostinho Abade
Red 'Hot Line' to Cape Verde government
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As the world has become a smaller place with overseas property investment no longer the preserve of the rich and famous, Cape Verde has emerged as one of the hottest destinations for investment. Spotting this potential, Red Hot Homes has led the way, forging strong relationships with developers, local business and lawyers and has even put questions to the Cape Verde government. |
A. Cape Verde’s ‘Constitution of the Republic’ ensures the rights of all citizens, to economic freedom and private property. As far as the economic rights and private property are concerned, the Government of Cape Verde assures access and protection of private property owned by foreign citizens the same way it is assured to the national citizens, giving non-residents buyers the same rights and duties as Cape Verde nationals and become residents. Q. What is the government doing to encourage overseas property ownership and investment in the islands? A. Investment is promoted namely through the existing macro economic conditions that encourages the investors, controlled inflation, the fixed parity between the Cape Verdean Escudo and the Euro. At the social level, there are concrete measures aimed at strengthening the democratic and social system. There is also the legal framework that assures a specific programme, advantageous to retired citizens who intend to reside in Cape Verde, even temporarily, making it easier to open foreign currency bank accounts. Q. Does the government currently offer tax concessions to non-residents and what are they? A. There is a property tax of 3% only payable on any profit from the sale. |
A. There are currently four international airports located on the islands of Sal, Praia, Boa Vista and Sáo Vicente. Improvements are underway on all national airports and ports and the airport of Santo Antão will be reopened. Extensive restoration work is underway on the Port of Praia, Port of Palmeira and Port de Vale dos Cavaleiros. In 2009 work will be carried out on the Port of Boavista. New highways and roads in Praia, São Domingos and Santa Catarina are under construction with further projects in the pipeline. As far as water, energy and basic sanitation are concerned new partnerships are being established in order to generate and manage the resources, to satisfy the strong demand by the real estate sector and the needs of the local residents.
Q. In your view, will the islands become more accessible to the European, American and South African tourist markets in the future? If so, what is the government doing to facilitate accessibility? A. Cape Verde is only three hours away from Brazil and Europe and six hours away from the USA. There are daily flights scheduled to Europe and two to three weekly flights to Brazil, South Africa and the USA. The number of flights will definitely increase with the functioning of the new airports and the government has created conditions allowing greater access to air space. It’s important to stress, the airports of Cape Verde are graded at the level 1 as far as security is concerned. Q. Have the islands seen a significant increase in overseas visitors in the last 12 months, if so, what do you think has influenced this growth? A. Yes. Tour operators have had positive impact, due to the diversity of the tourist attractions existing ineach island of the |
Q. Cape Verde appears to be looking towards the EU as the way forward economically. Is it possible that Cape Verde will be making an application for EU affiliation in the future? A. Cape Verde is claiming a special status in the European Union. We believe that this special status will lead us to an institutional improvement, which shall definitely be extremely positive to us. Q. In your view, how do you see the short term future of the islands with relationship to economic and capital growth? A. Positive. Growth is between 6% and 7% and the Government envisages reaching up to 10% in 2011. This will be possible if the same levels of investments registered (10 billions of dollars) and the portfolio already approved, are maintained.
Q. What would your advice be to those considering investing in property on the island? A. We shall continue to strengthen tourism of quality, at the same time ensure the protection of the environment. This is a matter for all countries, rich and poor, with the same amount of responsibility, to which they may and should dedicate themselves. Our country has already elected this principle as a fundamental directly linked to investment. |
