Country Guides / Cape Verde

Cape Verde - the 'new' Caribbean on Europe's doorstep

Last year both Channel 4's 'A Place in the Sun' and the BBC's 'Holiday' programme proclaimed that the Cape Verde islands are the next 'big thing' in terms of tourism and lucrative property investments.

Hailed as the new Caribbean because of its picture perfect white sandy beaches, warm clear waters and colourful coral reefs, visitors are also attracted to the fantastic tropical weather with temperatures never dipping below a temperate twenty two degrees.

This small group of islands nestling below the Canary Islands and only six hundred kilometres west of Senegal in the Atlantic Ocean, is only five and a half hours flying time from the UK and Ireland and it is the closest tropical location to Europe.

The Cape Verdean government and the relatively small population of only 400,000 have welcomed and actively encourage the recent overseas investment, development and tourism with open arms, aware that it can only be good for the economy.

REASONS TO INVEST IN CAPE VERDE

All year round tropical climate

It is not difficult to see the immediate attraction of this tropical paradise; blessed very little rain throughout the year and ten to twelve hours of sunshine per day. The island's dry tropical heat and low humidity with temperatures ranging from 22° to 29° with the hottest months between August and September make this the perfect year round holiday destination, especially for those seeking escaping the harsh winters under the African sun.

International Investment

Since the first murmurings of investment in Cape Verde, the islands have seen a phenomenal level of worldwide investment on the islands, of Sal, Boa Vista and Sao Vincente, with private investors behind the main thrust of the drive behind the enhancement of the islands infrastructure.

International governmental investment has also done much to raise standards and expectations for the potential investment returns on capital growth.

The Spanish government has pledged over 3 million euros towards environmental projects and the World Bank has approved a loan to the tune of 11.5 million US dollars to inject life into the economy's private sector. Whilst The World Bank, together with the European Union, African Bank and the Netherlands have each donated large sums to the development of the islands.

The Cape Verde government has pledged 30 million euros investment into the island's roads infrastructure, illustrating their commitment to growth through development and tourism.

Economy

The World Bank declared that Cape Verde has achieved incredible economic progress through reforms, cutting the fiscal deficit, now showing every sign of a stable economy

Capital growth

This is the optimum time for investment, with improvements to the island's infrastructure and property development in an embryonic stage it is possible to purchase a luxury beachfront property with incomparable surroundings and prices at a fraction of the cost of other tropical destinations. Cape Verde is arguably the lowest priced tropical island destination, however, prices are set to increase and continue to rise in a very short space of time in line with awareness.

The islands offer excellent year round rental potential due to the Caribbean climate and high quality resorts on offer.

Capital appreciation is currently at approximately 25% per annum with virtually guaranteed increases as a result of the huge amount of investment projects planned and currently underway.

Tourism

The Cape Verde tourist authority has established that the current number of annual tourists to the islands is approximately 130,000 per annum, a figure which is predicated to rise to over 500,000 per annum by the year 2015. The islands are predicted to eventually become more popular than the Canary Islands due to the more favourable year round temperatures.

The government's National Development Plan is also underway, devised to increase tourism on the island by putting into place improved services, banking, health facilities, water and sanitation. The scheme also includes improvements to roads, communications, maritime and air services.

Tax

The Cape Verde government is unflinching in its belief that the second home market and international tourism is the best way forward for the island's economy. In order to guarantee interest and future growth, tax breaks are offered to foreign investors.

• 3% inheritance & gift tax
• 3% capital gains tax (only when increased value exceeds 100% on plots and 30% on plots and 30% on property)

Only 5.5 hours flight from UK

Accessing Cape Verde has never been easier. The trip takes approximately seven hours from the UK and Ireland via Lisbon. However, it is now possible to fly direct from the UK and Ireland (London Gatwick and Dublin) to the new international airports in the capital Praia Santiago and Sal, cutting the flying time to only five and a half hours.

There is also an 'open skies' policy which will allow competition amongst other airlines to provide cost effective international flights.

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