Market Growth In Cape Verde

Cape Verde - Foreign Investment Policy

Cape Verde welcomes private foreign investment as a way to create a sustainable growing economy through job creation and capital investment and thereafter the collection of tax revenues. Legislation to entice external private purchising of investment property in Cape Verde was introduced in 1989 and continues to attract investors to this day:

The 'Lei de Investimento Externo' ('External Investment Law') introduced in 1993 broadened and enhanced the existing legislation to attract private foreign investment by non-Cape Verde nationals.

This law includes a 5-year initial tax holiday and a subsequent tax reduction by 50% on corporate tax (currently 30%) for the following 10 years.

These incentives can be extended indefinitely, as long as adequate re-investment is made.

Regarding tourism investment, an exemption is granted on import duties for materials necessary for construction and installation of projects. All net revenues are guaranteed transference out of Cape Verde in full and foreign currency bank accounts are available.

Private foreign investors are entitled to residency in Cape Verde if they employ more than 13 nationals or invest more than approximately 35,000 Euros. Caboverde Investimentos (which recently replaced Promex - the 'Center for the Promotion of Tourism, Investment and Exports') is a government agency that is officially the front desk for potential investors; the agency also approves projects and arranges further approval needed from the Government.

Cape Verde - National Development Plan

A healthy tourism industry is seen as the main area for development, targeted by the government in its strategy for sustainable economic development.

Supported by Cape Verde's international donors, the government is implementing a series of programmes through its National Development Plan (NDP - 2001-2005) to improve the infrastructures necessary for the development of the archipelago into a quality tourism destination.

Programmes included under the NDP cover areas such as transportation (air, maritime, inter-island and road transportation), communications, banking, health provision, electricity, water and sanitation provision and professional training.

Cape Verde - Tourism and Air Infrastructure

The new airport in Praia on Santiago Island opens a vital second international gateway to the Cape Verde islands from Europe and allows common aircraft such as the Airbus A310, A320, A319 and Boeing 767, 737 and 757. Its the opening of this airport that is seen as the dawn of the bright future in tourism for the Cape Verde Islands and in turn boost return on investment (ROI) prospects for early property investors on the islands.

The Cape Verde national Airline TACV will operate routes from the UK (November 2006) and from Lisbon and Paris as soon as the airport is open. A further boost to investors is that there is an "Open Skies" policy allowing other airlines to fly to Cape Verde and forcing lower airfares through competition.

It is essential that demand for the Cape Verde islands is created through high class accommodation being available and there are plans for a 150 room 5-star hotel in the centre of Praia as well as a 135 room commercial hotel. Existing hotels are upgrading and expanding to meet the demand which the availability of air travel will bring to the Islands.