The taxes and fees seem to vary but as far as I can make out it is approx 4.2% of the purchase price of the property so a saving of about 3%. If you have arranged a mortgage through a CV bank there are notary fees to pay for this.
I am led to believe the taxes and registration fees have been altered to around 400 Euros.
Bring me sunshine
This is a recent email from my lawyer with regard to the new legal costs, which I hope is of benefit to you
Just to inform the new legal cost:
The costs and expenses for each purchase and sale, including public notary and registry fees and taxes vary in accordance with the value of the sale. Please note that with the approval of the budget 2010 form the Government of Cape Verde, these costs are of roughly 5% of the acquisition price and includes payment of property transfer tax called “IUP” (Imposto Unico sobre Patrimonio – 3% of the value of the purchase) on the Tax Property Office, payment (+/- 0,5%) of the act of public registry of deed of title (Escritura Pública), payment of the stamp duty (1%) at the Public Notary and payment (*/- 250€ or 450€ – purchase or purchase with loan) of the registration of the Contract of Buying & Selling at the local Land Registry Office and bank commissions (+/- 30€). They are payable on signature of the Deed of Conveyance.imported_richMember
(just escaped from a sentence on the NHS)
Trying to catch up on all thats happened recently,both positive and negative (the later being quite painful to follow at times).
Good to see that the very helpful advice is continuing,especially for all the virginal buyers like myself.
I am pretty close to completion myself now and due to send out monies for taxes etc via my solicitors.
The one payment that leaves me with a question mark for now and the future is the Annual municipal tax.
I believe it is due for payment on the month of April each year (commencing when)
but can also be paid in 2 installments if prefered (April/Sept).
Does anybody know if it is possible to set up a direct debit for this purpose (even via a CV account)?
I would imagine that once the Condominium fees and any others that
i may have overlooked are due to be paid they would also have to be done via this or a similar method ?
Any advice around this area of the process please.
This has been reproduced from another forum,and should be of help to everyone buying on Santiago island
I and another investor managed to pay our IUP at the Camara in Sao Domingos a couple of weeks ago, so here is a guide to help you all when the time comes.
The amount of IUP is fixed for the period you own your property as it is based on the purchase price as recorded in your deeds. The calculation is 85% of the purchase price, then 25% of that, and then 3% of that.
For example, if your purchase price was Euros 100,000, 85% of that is Euros 85,000. 25% of Euros 85,000 is Euros 21,250. And 3% of Euros 21,250 is Euros 637.50. Euros 637.50 (CVE equivalent) is therefore the amount of IUP you pay to the Camara each year.
You are liable for IUP on your property from the January following the registration of your purchase at the Camara. The tax is not imposed pro rata from the date of completion of the purchase as it is in the UK.
You do not get a bill or any reminder – though the Camara may write to the lawyer who handled your purchase.
The fiscal year runs from January to December, and IUP is payable in two instalments – in April and September. I have been told that, if you pay in April for the whole year, you get 10% discount, but don’t bank on this as I’ve been incorrectly advised before.
HOWEVER, if you are late making your payment then a fine of 1% per month is payable – accruing back to January. Therefore, if you pay the April instalment in, say, August, you pay 8 months x 1% of that instalment. There is also another amount listed on my receipt as “Taxa de Relaxe”. Not sure what that translates to, but it must relate to the fine as it was not imposed on my second instalment.
How to pay:
It is advisable to pay your IUP in person at the Camara Municipal in the town of Sao Domingos. It’s a very distinctive building set back from the main road and quite easy to find. Immediately inside the front door, there is another door on the right. The ladies do not speak English – only Crioulu and Portuguese – but if you say “Sambala Village” and “IUP” (pronounced “yoop”), then they know what you want and will find someone who speaks English to help you.
Please note you cannot pay by credit or debit card. Also – although we didn’t ask as we have local bank accounts – I assume Euros are not accepted, you must pay in CVE.
I have been told that it is possible to transfer payment to the Camara via your bank, then fax the transfer documentation through to the Camara. However, no-one I spoke to – including the Director of Finance at the Camara – seemed to think this is a good idea as the chances of the Camara staff marrying up the payment with your property record are pretty slim. However, if you wish to try this method, the information is as follows:
“BCA (BANCO COMERCIAL DO ATLANTICO)
Account #: 12234126.10.001
Banco Comercial do Atlântico
AV. Cidade de Lisboa
Republic of Cape Verde
After the payment/transfer is made, the client (property owner) should send a copy its receipts to be processed to the following fax number +2382681400 or email email@example.com; or firstname.lastname@example.org .”
Alternatively, your lawyer may be willing to handle the payment for you if you send them the money. My lawyer (D Hopffer Almada) asks for Euros 20 to cover bank charges.
When you go to the Camara, you will need to take your passport for identification, and also your property’s “Matriz” number. This helps the Camara staff find the record for your property. It’s not absolutely essential to have the Matriz number as they should be able to find the record if you give the address of your property and date you got escritura – but it saves a lot of time and rummaging through huge ledger books.
Once you have made your payment, the cashier will print off and hand you a formal receipt.
How to find your Matriz number:
The Matriz numbers for my properties were given on the covering letters of my handover packs, but if they weren’t on yours, they are also given on the certificate of registration that is included in your deeds. Note your title to the property is registered in TWO places – the Camara at Sao Domingos (our “local authority”) and at the Conservatoria (part of the Ministry for Justice) in Praia, so you will have two certificates of registration.
The one you need is a single sheet of paper with:
A logo and Camara Municipal de Sao Domingos at the top of the sheet
Below that as the next heading: Administracao Fiscal Municipal
And below that: Certidao No XXX/2008 (your certificate no and the year of registration.
The Matriz number is written out in words – not figures – and can be difficult to find if you don’t read Portuguese.
Look for the following about half way through the text on the certificate:
“..inscrito na matriz predial urbana da Freguesia de Nossa Senhora da Luz, sob o numero quatrocentos e ??? e ???.
That is: “… inscribed in the matriz predial urbana of the Parish of Our Lady of Light, under number four hundred and ???.”
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