Buying guide · 2026 rules
Costs and taxes when buying a home in Cape Verde
How much you spend on top of the price, what it costs to keep the home each year, what you pay if you let it or sell it, and what Italian residents must declare in Italy. With the new taxes in force since 1 January 2026.
What changed in 2026
The old IUP (Imposto Único sobre o Património) has been abolished. It has been replaced by two new taxes, introduced by Laws no. 54/X/2025 and 55/X/2025:
- ITI – property transfer tax: paid once, when you buy
- IPI – property tax: paid every year to the local council
In practice
On purchase, the rate drops from 1.5% under the old IUP to 1% ITI. The annual tax falls to 0.1% of the value. If you still read “IUP 1.5%” in a guide, it refers to the rules up to 2025.
One-off
Buying costs
- ITI – purchase tax1%Paid by the buyer before the deed. Rises to 3% if one of the parties is based in a tax haven.
- Stamp dutysmall amountOn the contracts and on notary and registry fees; 0.5% on any mortgage.
- Notary and registrya few hundred eurosAccording to the official scale of fees: ask for a quote before the deed.
- Lawyer (recommended)from around €500Or around 1–2% of the price, depending on the property and the checks.
- Translations and power of attorneya few hundred eurosOnly if needed: foreign documents to translate, a power of attorney to sign remotely.
- Approximate totalaround 2.5–4%Of the purchase price, under the 2026 rules.
Example: for a €90,000 flat the ITI is €900; with notary, registry and stamp duty the total usually stays between €2,300 and €3,600, lawyer included. The notary will confirm exactly which value the ITI is calculated on (price or rateable value) and the current fees.
Every year
What it costs to keep the home
0.1% of the value set by the council’s valuation committee. On a home valued at €50,000, that is about €50 a year. It is paid by whoever owns the property on 31 December.
These depend on the residence: pool, cleaning, security and maintenance. Always ask for the accounts and the annual charge before you buy.
Through Electra (electricity and water) and the local council. They depend on usage: ask the seller for the latest bills.
If you do not live there: cleaning, inspections and maintenance, or an agency that lets the property for you. With the The View apart-hotel you have no management costs.
If you let it or sell it
Rentals, sale and inheritance
Since 2024, letting to tourists requires registration as alojamento local (Decree-Law no. 56/2024), with an inspection and stays of up to 90 consecutive days.
Non-residents are subject to a withholding tax on rental income, with rates and procedures that depend on who pays the rent. Ask a local accountant for the rate that applies to you.
Tourists pay around €2.50 per night (from age 16, up to 10 nights): if you let your home, you must collect it and pay it over.
Capital gains tax is payable in Cape Verde. Sources disagree on the rate: check it with the notary before you sell.
Passing the property to heirs or giving it away also falls under the ITI. For family situations, legal advice is worthwhile.
For residents of Italy
What residents of Italy must declare in Italy
Anyone resident in Italy pays IVIE, the Italian tax on property abroad: since 2024 it has been 1.06% a year. For countries outside the EU it is calculated on the price stated in the deed, and the property tax paid in Cape Verde (the IPI) can be deducted. Below €200 nothing is due.
The property must always be listed in the Italian tax return (section RW), even if no IVIE is due.
There is no double taxation treaty between Italy and Cape Verde: rental income received must also be declared in Italy. Ask your accountant how to recover the tax already paid in Cape Verde.
Let’s do the maths together
Want to know what you will really spend?
Tell us which property you are interested in: we will prepare a summary of the costs for your situation.
Updated October 2026 on the basis of Cape Verdean law (ITI and IPI, Laws no. 54/X/2025 and 55/X/2025; alojamento local, Decree-Law 56/2024), PwC Worldwide Tax Summaries and the Italian Revenue Agency (IVIE). Figures for the notary, lawyer and total are approximate. General information only: it does not replace the advice of a notary, lawyer or accountant.