Renting out your property in a Hotel or Resort:

When buying a property you should also consider its situation if you want to rent it out, or if you want to re-sell it  in a few years.....location, location, location. Is it in a good location with facilities/amenities?

If you are looking to rent long term or short term lets, people may prefer apartments that they may feel more secure in, or are nearer the town/beach or in a Resort.

If you are buying into a Resort scheme, consider the contractual arrangements and agreement for personal use, replacement of scheme furniture etc. Does the Resort agreement stipulate that they are the only ones that can rent out your apartment. Is the rental income the Resort receives shared between owners or calculated individually or in categories? How does your Resort scheme work? What costs and fees for management are deducted and when?

What are the pros and cons of staying in the scheme? Is it possible to opt out of the scheme if you want too? What are the pros and cons of opting out? Are you thinking of buying a re-sale property in a Resort that is already 'out of the rental scheme'? Find out more from the seller and the Resort Management. The same would need to be done if you are buying a re-sale property in a resort being sold privately, that's in the Resorts rental scheme. Your lawyer should help you with this.

Some resorts may be classified as Hotels (or similar establishments!), they may adhere to different conditions related to how rentals are managed or who can rent out properties. Ask your lawyer about this. Please note, some lawyers have provided conflicting advice on this matter to other lawyers. You may receive conflicting information from other sources too. We can't advise on who should be paying what for different resorts/hotels, this is just a page with some useful tips for you to ask your own questions and seek your own answers for your own particular property. Please carry out your own due diligence and also check with other sources such as: Rental Management Agents, Finanza, Camara Municipal, Ministry of Tourism, accountants etc.

Rental Income Tax - All Property Types

If you are looking to rent your property you are required to declare your income from renting to Finanza. You are required by law (whether you own a property and rent it out in a Resort,Hotel or any other rented property outside a resort or hotel) to pay 10% of your rental income (prior to 2017 it was 20%).

Tourist Tax - Hotels and Resorts

Tourist staying in hotels/resorts will be required to pay a tourist tax from 1st May 2013. The Tourist Tax focuses on the overnight stay in tourist establishments and similar (220 escudos per night, up to a maximal of 10 nights and for guests over 16 years old). Nationals traveling to any Cape Verde island and staying in hotels/residentials/resorts, etc. will have to pay tourist tax. This is either collected at the hotel or paid in advance through a Tour Operator. However, private owners of rented properties in hotels and resorts will need to make their own enquiries about these payments or arrangements for the payment of one or both taxes if they rent out. We cannot give any other information on individual resorts or hotels.

Payment of Rental Income Tax or Tourist Tax

If you have an arrangement with the hotel and resort for rental of your private property, they may pay these taxes on your behalf, you will need to make your own enquiries about these payments. Or, you can either enter your data and tax declaration for both RENTAL INCOME TAX and/or TOURIST TAX yourself on the website PORTON DI NOS ILHAS GOV CV (the website information is available in Portuguese and English), print off the statement showing how much needs to be paid for your property and then arrange with your bank in Cape Verde to pay the bill. Or alternatively you should arrange with an accountant or management agency in Cape Verde to do this on your behalf.

Before you can make any entry amounts or submissions on the website, you will first need to be set up on the Porton Di Nos Ilhas system and register online. You will be asked to provide an email address for the account and set up a password.

Please note, from experiences of others, the website is often updated, so the procedure for inputting your data may differ from time to time. Those who process the data themselves will need to take two copies of the payment statement they have printed off for their calculated tax amount to be paid and take to their CV bank for processing. The CV bank keeps a copy and the payee keeps copy as the receipt of payment.

If using a service to make these payments on your behalf, It is best that owners calculate the amounts to be paid and agree these amounts are correct. The calculations are as above. This information update was provided January 2019.

You can visit the Porton Di Nos Ilhas Gov CV site here:

ENGLISH

PORTUGUESE