Sal is one of Cabo Verde’s most popular islands for property investment, largely due to its year-round tourism, international airport, attractive beaches, and growing holiday rental market. The town of Santa Maria is the main investment hotspot, attracting European buyers seeking second homes, holiday rentals, and long-term capital appreciation.

Investment Opportunities

1. Holiday Rental Market

Sal receives a large proportion of Cabo Verde's international tourists, creating strong demand for short-term holiday accommodation. Apartments, beachfront properties, and resort residences are particularly attractive to investors seeking rental income.

2. Capital Growth Potential

Property prices remain generally lower than comparable Mediterranean destinations such as Portugal, Spain, or Malta, while tourism continues to expand. This creates potential for long-term capital appreciation.

3. Stable Legal Framework

Cabo Verde has a legal system derived from Portuguese civil law, providing a relatively transparent and secure framework for foreign investors. Property ownership rights are generally the same for foreign and local buyers.

4. Currency Stability

The Cabo Verde Escudo (CVE) is pegged to the Euro at a fixed exchange rate, reducing currency risk for European investors.

Can Foreigners Buy Property?

Yes. Foreign nationals can buy residential, commercial, and tourism-related property in Cabo Verde without major restrictions. Foreign buyers enjoy the same ownership rights as local citizens and can purchase property either personally or through a company structure.

Property Purchase Procedure

Step 1: Obtain a Tax Number (NIF)

Before purchasing property, investors must obtain a Cabo Verde Tax Identification Number (NIF). This can be arranged through local tax offices or legal representatives.

Step 2: Open a Local Bank Account

A local bank account is highly recommended for receiving rental income and making purchase-related payments.

Step 3: Engage a Lawyer

An independent local lawyer should conduct due diligence, verify ownership rights, and confirm there are no debts or legal encumbrances affecting the property.

Step 4: Reservation and Preliminary Contract

A reservation fee or deposit is usually paid, followed by a Promissory Purchase and Sale Contract outlining the agreed terms. Deposits commonly range between 10% and 30% of the purchase price.

Step 5: Notary Deed and Registration

The transaction is completed before a public notary. The property is then registered with the Land Registry (Conservatória do Registo Predial).

Investment Requirements

Typical requirements include:

• Valid passport.

• Cabo Verde NIF (tax number).

• Proof of funds.

• Local bank account (recommended).

• Purchase contract and notarial deed.

• Registration with the Land Registry.

The overall purchase process typically takes between 3 and 8 weeks depending on due diligence and document preparation.

Residency Through Property Investment

Cabo Verde offers a "Green Card" residence programme linked to qualifying property investments. For investments on higher-income islands such as Sal, the minimum qualifying property investment is generally €120,000.

Benefits may include:

• Renewable residence rights.

• Ability to reside in Cabo Verde.

• Inclusion of immediate family members under certain conditions.

• Potential tax incentives depending on current legislation.

Investors should seek specialist legal advice because residency requirements and qualifying conditions can change.

Taxes and Costs

Property Transfer Tax

A property transfer tax applies when property is purchased. Typical transaction costs are approximately 3% for transfer taxes, with additional notary and registration fees.

Annual Property Tax

Cabo Verde introduced a revised property tax system in 2026. The annual property tax (IPI) is relatively low and is generally based on the taxable value of the property. Some sources indicate a rate around 0.1% of assessed value.

Rental Income Tax

Rental income earned from a property is generally taxable in Cabo Verde. The exact rate depends on ownership structure and applicable tax rules.

Capital Gains Tax

Profits from selling property may be subject to taxation under Cabo Verde's income tax rules. Professional tax advice should be obtained before disposal.

No Inheritance Tax

Cabo Verde is often noted as not having a conventional inheritance tax, which can be advantageous for estate planning.

Key Advantages

• No restrictions on foreign ownership.

• Strong tourism market on Sal.

• Euro-linked currency stability.

• Competitive property prices compared with Southern Europe.

• Potential residency route through investment.

• Growing demand for holiday rentals.

Key Risks

• Dependence on tourism demand.

• Variable rental occupancy outside peak seasons.

• Importance of thorough title and planning checks.

• Evolving tax and residency legislation.

Overall, Sal remains one of the most attractive property investment locations in Cabo Verde for investors seeking holiday rental income, long-term appreciation, and a potential residency pathway, while benefiting from a relatively straightforward legal framework for foreign ownership.