Why Invest in Cape Verde

Rapidly growing tourism.

Cape Verde tourism has been growing by 15% per annum since 2004, with an estimated 1 million visitors expected per year by 2015. The government, backed by the IMF and the World Bank, has actively encouraged foreign investment and this has created a boom in tourist-related development. One benchmark of tourist development is the announcement that Hilton International Hotels are due to open the first 5 star hotel on the islands in 2010.

Major government investment in infrastructure.

The National Development Plan put in place by the Cape Verde government outlines a number of measures to significantly upgrade the infrastructure of the islands including financial structures, communications, power, water and transport (see below).

Easy accessibility.

Cape Verde offers a tropical paradise within striking distance of Europe, at least four hours closer than the Caribbean and much easier to reach than Asian resorts in Thailand, India or Indonesia. With the arrival new international airports on Boa Vista, Santiago and San Vicente and regular charter flights from the UK, tourism – and consequently property investment - is expected to grow even more rapidly.

Affordable property

As an emerging market Cape Verde has not yet experienced the property price boom of equivalent holiday destinations in the Mediterranean. Yet, given it's climate and proximity to mainland Europe it has the potential to outstrip many of the current property hotspots on the continent.

Incredible growth potential.

With low property prices and huge investment potential, the islands are already being targeted by canny property investors seeking to capitalise on the 30% per annum increases that are being forecast – and with year-round sunshine (and consequently no "off-peak" season) it also offers good opportunities for high rental yields for 12 months of the year, much like its relatively near neighbour, the Canary Islands.

Lost cost of living

Most basic necessities are a fraction of the cost of Europe – not only is that a big draw for tourists but it makes both second home and retirement homes an extremely attractive prospect.

Economic and political stability

Cape Verde is a democratic republic with no ethnic, religious or political strife and a government that actively encourages foreign investment. The currency is tied to the Euro and future membership of the EU is a distinct possibility, particularly with Portugal actively campaigning for inclusion on the islands' behalf.

In the past Cape Verde has offered tax incentives to foreign investors, however, the IMF is currently helping to reform the tax system. It is highly recommended that anyone considering investing in the islands seek advice on current tax legislation.

Cape Verde Property Guide

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