Invest in Cape Verde

With a long list of advantages, investing in Cape Verde is becoming more and more popular throughout the world. As the interest in banks is around zero, or even below, it is important to look at alternatives for investment and wealth management. One of the better options is to invest in Cape Verde, and benefit from a high ROI. Cape Verde investing is very popular among Europeans, and USA and Russia are also beginning to see the advantages.

Property owners in Cape Verde rarely sell their investment, but keep it for many years. With an annual taxfree return of up to 10%, the incentive to sell is low. Cape Verde is at its beginning as a tourist destination, and the earlier you are in, the bigger is the reward. Exactly like Costa del Sol in the 70’s and the French Rivera in the 60’s, where prices were marginal compared to today.

The return and value are both a result of the long term agreements in place, and not subject to investor speculation, property inflation or sudden economy upswings.

Safe investment with up to 7% guaranteed ROI

Property and hotel investment can be very challenging, and often demands extensive knowledge to guarantee a good ROI. A Cape Verde investment is different, due to long term contracts with some of the largest hotel organisations and tour operators in the world. To ensure stability and revenue when you invest in Cape Verde, operator contracts are minimum 10 years, and often 20 or more. So the property you own, is guaranteed a steady stream of visitors over the next many many years. As a result, the return on your investment is high, on average up to 6%. The highest yielding properties have returned up to 11,3% per year. The return depends on the type of property, and the age of the resort. With time, optimisation, efficiency and returning visitors increases the annual return.

You are guaranteed 5-7% the first 3 years depending on property type

Up to 7,6% value increase annually

Property values are in a steady growth, and have been for around 10 years. The increased international interest, improved economy and many new resorts forces prices up. It is expected the trend will continue for many years to come, a great benefit for those choosing to invest in Cape Verde. The hotel apartments in the resorts have had an average increase in value of up to 7,6% P.A. since 2011, and on average 7,1% per year. Outside the resorts the price of both properties and land for sale shows a similar tendency, especially around the tourist hotspots. Based on results from the previous years, it is safe to calculate with an annual increase in property value from 6-8%.

Fully occupied resorts

A necessity for a high return of investment (ROI) is efficient management and high occupancy of the resorts. With a proven track record over the last 10 years, occupancy is not an element of surprise. Even for the newest resorts it only takes few years before they are operating a a theoretical maximum. Longterm contracts with big international travel operators such as TUI ensure a steady flow of guests to the resorts. In addition some of the largest hotel chains are operating the resorts, ensuring high luxury and recognition. Key elements, when considering to invest in Cape Verde, and a part of the reason for very high return of investment.

Taxfree returns

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Each quarter you will receive the return of your investment paid directly to your account. If you choose to have an account in Cape Verde, the return is taxfree. As a non resident, any income generated from property rental on Cape Verde is taxfree.

When you invest in Cape Verde, you can also choose to have the quarterly return paid to an account of your choice. In this case, tax liability would normally be in the country where you reside. Majority of property owners choose an account in Cape Verde and enjoy the taxfree benefits. Banks are operating on an international level, and the local currency Escudos is tied to the Euro. International credit cards (Visa & Mastercard) are normally provided together with an account.

4 & 5 Star luxury resorts

On the islands of Cape Verde there are many different types of hotel and resorts – we only offer 4 and 5 star resorts for investment. This is your guarantee that quality, professionalism and brand is at the highest level. The hotel industry can be very challenging, and therefore we only work with international organisations such as Melia, Mövenpick, Radisson Blu etc. This is your guarantee that the resort will be backed by a powerful leadership. The resorts offer a full package of facilities and entertainment, to ensure guests will enjoy their stay. All inclusive stay is available on all resorts, and chosen by most guests. All food is prepared to a high level, and the buffet is greatly varied. Sea food is the speciality, freshly caught in the crystal clear waters surrounding the islands. Nightly entertainment and several beach clubs complete the entertainment palette.

Construction underway - completion 2020

White Sands Hotel & Spa continues to take shape upon the sandy shores of Santa Monica Beach, with work currently focused on the finer details of the Resorts Villas and Beach-front Suites. Taking great care, this stage of construction is all about attention to detail and is what makes our developments award winning. The whole resort is expected to be ready in 2020, and all construction work is progressing according to the plan. The government is also following the plan in building the new access road from the airport, allowing guests to have a pleasant transfer.

Increasing tourism

During the last three years the average number of tourists have increased by 10,2% each year. New luxurious resorts, fantastic climate and increased media attention attracts visitors. The government in Cape Verde is also very positive towards tourism, and does encourage international investment. The tourism sector makes up almost 50% of the country’s GDP. The increasing number of tourists is encouraging if you consider to invest in Cape Verde. A large visitor count will not only improve the occupancy at the resort, but also stimulate the local economy. With a better economy, the country is able to improve the living conditions for it’s residents and the facilities for its visitors.

Direct flights from all over the world

An increasing number of countries are offering direct flights to Cape Verde, which has an international rated airport. Denmark, Germany, Belgium, Netherlands, France, Italy, USA and Brazil are some of direct flight destinations. Both Lisbon and Gran Canaria serves as a hub for flights to all the Cape Verdian islands, with several daily routes. New direct routes appear each year, and as a result it gets more and more attractive to invest in Cape Verde. A direct flight from Scandinavia/UK takes around 5 hours. The further south, the less flying time, from Portugal it only takes around 4 hours.

Visa on arrival - no limitations

EU citizens simply need register online prior to the arrival, and a 30-day visa is granted.

Visitors from outside of EU will get a visa upon arrival, allowing for a 30 day stay. Residents from all over the world are welcome in Cape Verde. This is a great advantage for those who wish to invest in Cape Verde, but often meets visa difficulties. Visitor will get a visa stamp in their passport before entering the country. The process is normally swift, however during peak hour it can take up to 30 mins. Normal travel regulations apply in general.

Perfect weather all year round

The islands of Cape Verde is situated around 500km of the coast of Central Africa, and benefits from a perfect climate. Temperature is from 25-31 degrees, with the warmest period being from July to October.The islands receive very little rainfall, on average 90 mm per year. Most of the rain falls in September, and a few isolated showers in October. The humidity is low, and most visitors describe the climate as very pleasant. A gentle breeze is normally present, and combined with low humidity, its an almost ideal setting. The all year round summer, little rainfall and no hurricanes is among the reasons tourism is increasing and its a good time to invest in Cape Verde.

5 weeks personal use

One of the advantages by investing in Cape Verde, is the personal usage at the resort. As a property owner, you are can use your apartment for up to 5 weeks a year. It is possible to switch to a similar apartment if you wish, as long as the capacity is the same and there is sufficient availability. It is also possible to upgrade to a larger unit, by using the property for less weeks. If you own an apartment for 2 people, you could switch to a 4 people apartment for one week. You would then use 2 weeks of the 5 week allowance. In some cases it is possible to switch to a different resort within the same resort brand. The 5 weeks allocated per year can also be given to friends, or sold privately.

Increasing media attention

As the general interest rises, it becomes more and more visible on the internet, travel portals, news stations etc. In 2018 CNN placed the Cape Verde Islands as the number 1 place to visit for a holiday. On Google, the most searched destination in 2017 was Cape Verde, and it have seen the largest increase for any destination. A staggering 3.000% over the last 12 years! The Daily Telegraph, one of leading UK newspapers calls it “The most underrated winter sun destination“, and explains the 10 main reasons for this. World Travel Guide, Tripadvisor, and Lonely Planet all have extensive travel information about the Islands as well.

Stable government

Cape Verde have been a democratic republic since 1975, and have a well functioning political system. The government actively seeks to build good international relations to increase tourism and benefit the islands. A multi party parliament manages the country, and keep focus on developing the country in a sustainable way. Improvement of living conditions and education is also highly prioritised. Most property developers directly aid the local population, as an integrated part of investing in Cape Verde. The international approach have led to Spain, Russia, France, Germany and USA being among the countries who have an embassy on Praia. Cape Verde also have a special partnership with EU, and the local currency Escudo is indexed against the Euro. The country is often brought up as a good example for other African countries.