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Booklet- Part2
MONEY TRANSFER
Bank transfers can be made through banks or through the Western Union.
Bank transfers takes on average 3 days, with the following requirements:
• Payment order;
• SWIFT of the Bank of destination;
• IBAN (International Bank Account Number) ;
• Proof of the motive of transfer
Note: An import license is required for import payments.
The following documents are required for transfers through Western Union:
To send money:
• Identification Document;
• Fill in a form with information on the amount to be sent, the name and surname of the beneficiary, the limit amount up to which one is allowed to send is 200,000 escudos (approximately € 1,814).
To receive money
• Identification Document;
• Fill in a form which requires that the beneficiary knows the sender's name, the approximate amount to be received and the country of origin of the funds.
COMPANY CONSTITUTION AND REGISTRATION BY A FOREIGN INVESTOR
Trading Companies in Cape Verde may be:
• Partnerships;
• Limited liability companies;
• Joint stock companies;
• Partnerships limited by shares;
• Cooperative Companies.
Potential foreign investors willing to invest in Cape Verde shall go to Property Registry Office in their area of residence and submit the following documents for company constitution and registration:
• Company Registration Certificate;
• Company’s internal rules or Bylaws;
• Proof of the company’s bank account in a Bank of the owner’s choice and submission of the deposit slip at the time of the constitution of the company, if the company’s stock capital is in cash. If the company's stock capital is in assets, a list of goods prepared by an accountant must be submitted, with a photocopy of the accountant’s ID;
• Taxpayer identification number of the company and partners;
• Identification Document of the applicants, the partners, or their representatives (photocopy of passport, and if the person is married he/she shall provide the name of spouse, the marriage system and residence);
• Power of Attorney when the partner is represented by an attorney.
The period of time for the constitution of a company in the Registry Office may be extended to the maximum period of 52 days, and it is a process free of cost.
This company constitution process can also be completed in just one day, at the Citizen Houses, by following the requirements below:
Singular persons, national citizens or foreign nationals:
• The applicant’s identification (national or foreign applicant)
Identification Card/Valid Passport (compulsory);
NIF (the applicant’s Taxpayer Identification Number), issued by the Finance
Department;
The applicant’s representative shall submit the following documents:
Power of Attorney issued by the company owner on behalf of the representative;
In case there is more than one partner:
Partners Identification and Taxpayer Identification Number ;
• CAF (Company Admissibility Certificate), which can be issued by the Citizen House (48 hours), or by the Property Registry Office (the same day for the price of 600 CVE);
• Number of partners (identification, marital status, system of community of goods);
• Minimum stock (company limited by shares = 200,000 CVE; partnerships 2,500,000 CVE). The proof of the amount is not compulsory, but the applicant has to make a declaration of honour in which he/she states that he/she has such amount of money in cash;
• Reference to statutory auditor and administrator (only the partnerships);
• Reference to Managers (only the share companies);
• Identification/proof of the contract with an accountant registered in the Finance Department or in the Cape Verde Accountant Association (name, registration number, Taxpayer Identification number);
• Payment of 10,000 CVE for the expenses related to the process and documentation;
As an option, one can register directly with the Chamber of Commerce of Sotavento or Barlavento, by paying 1,000 CVE and 3,000 CVE, respectively;
• And provide with the following information:
Date of commencement of activity;
The amount and type of business;
Number of workers.
Collective persons (national or foreign companies):
• Identification of the company (national or foreign company)
Registration number of the company in the country of origin;
Minutes referring to approval or deliberation of the appointment of the representative;
Power of Attorney of the collective person issued in the name of partner / representative person.
Note: All documents must be translated into Portuguese and certified at the Embassy or Consulate of Cape Verde in the country of origin.
• Taxpayer Identification number of the company ;
• CAF (Company Admissibility Certificate) of the company;
• Number of partners (identity, marital status, system of community of goods);
• Minimum capital (limited liability company 200,000 CVE; companies 2,500,000 CVE);
• Indication of statutory auditor and administrator (only for limited companies);
• Indication of managers (only for companies limited by shares);
• Identification/proof of the contract with an accountant registered in the Finance Department or in the Cape Verde Accountant Association (name, registration number, Taxpayer Identification number);
• Payment of 10,000 CVE corresponding to the cost of processes and documentation;
As an option, one can register directly with the Chamber of Commerce of Sotavento or Barlavento, by paying 1,000 CVE and 3,000 CVE, respectively;
After the constitution, the company must apply for licensing to carry out its activities, at the Ministry or Directorate responsible for the area of activity.
Information provided by The Property Registry Office of S. Vicente and by the House of Citizens on the island of Santiago.
TAXATION
• Value Added Tax (VAT)
It is the tax levied on:
• The value added to goods in each business transaction, including on the value of the price paid or to be paid;
• The provision of services, namely on the value of the service rendered;
• Imports, particularly on customs value.
VAT rate is 15%, but only 6% is levied on activities related to tourism, particularly the sectors related to hotel / accommodation and catering. Non-resident taxable persons are entitled to the rights and conditions under which paid VAT is refunded, set forth in Capeverdean law.
In order to benefit from this right, the creditor shall appoint a representative in Cape Verde, with powers duly conferred by a power of attorney.
According to VAT Regulation, there are activities carried out by companies that are exempt from VAT, as established in article 9 of the mentioned regulation, namely:
• Public health services;
• Education, vocational training and sports services;
• Cultural, scientific and artistic activities;
• Activities related to insurance, banking and social assistance;
• Tenancy and transfer of property;
• Provision of essential foodstuffs, particularly meat, fish, milk, eggs, vegetables, fruits, cereals, vegetables, fatty oils;
• Services related to farming, forestry, livestock and fisheries;
• Funeral Services;
• Medical, health and other services, and medicine.
According to article 12 of the VAT regulation, there are also exemptions on the following import activities:
• Final import of goods the selling of which in the national territory benefits from tax exemption;
• Import of goods that benefit from customs tax exemption, under the law and rules in force.
• Single Tax on Property (IUP)
It is the tax levied on the buyer upon transfer of ownership; it is set annually by the Municipalities in the area of location of the properties and it is applied to rural and urban land registered in the municipal land registry (City Councils).
Single Tax on Property (IUP) is 3%, levied on the acts subject to public deed and on the value of the land, replacing succession and donation taxes as well as the property transfer tax.
• Single Tax on Income (IUR)
It’s the tax levied on income/profit declared by the companies or similar entities, such as:
• Real profit of the companies with accounting;
• Income declared by free-lancers and similar professionals;
• Estimated profit by methods established by tax authorities, aimed at other taxpayers or those with no proof of accounting elements.
The Single Tax on Income rate levied on the taxpayers by the method of verification is 25%, and 15% on the income of taxpayers calculated with the method of financial estimation. Non-residents, even if they do not have permanent residence, are taxed on their earned income, at a discharge rate of 20% of the value of invoicing.
Capeverdean law provides exemptions from payment of the Single Tax on Income (IUR) to:
Industrial companies
Exemption from IUR on the profits of the first 3 years;
Deduction of the taxable base on the entire profit reinvested in the same or in another business;
Deduction of the taxable base on expenditure incurred with people’s vocational training activities.
Foreign investment
Tax exemption on profits for 5 years;
Tax exemption on dividends and profits, should they be reinvested;
Tax exemption on amortization and interest.
Franchising
Tax exemption on profits for 10 years.
• Stamp Duty on Transactions (IS)
According to Law No. 33/VII/08 2008, stamp duty is levied on:
Corporate and notary transactions, at the rate of 0.5%, particularly on the act of company constitution, increase of share capital, change of bylaws, etc.
Financial and insurance operations, at the rate of 0.5%, particularly on loans, guarantees, bills and bank overdrafts. For interest and insurance operations, the rates will be 5% and 3.5% respectively.
Property transmission, at the rate of 10%, specifically on purchase and sale of assets, business transfer, leases, etc.
For further information, please contact:
Cape Verde Ministry of Finances– General Directorate of Contributions and Taxation
Address: Praia, Santiago
Telephone: (+238) 261 77 59/261 43 78
LEASE CONTRACT
A lease contract (deed) must be sealed in a Public Notary Office, with the following documents:
• Contract;
• Property Registration Certificate (issued by the Property Registry Office);
• Property Certificate (issued by the City Hall);
• Photocopy of the Contracting Parties Identification Cards;
• Taxpayer Identification Number of the Contracting Parties involved.
For further information, please contact:
Public Notary Office
Praia, Santiago - Telephone: (+238) 262 62 05 / 261 27 68
Mindelo, S. Vicente – Telephone (+238) 2326477 / 2326377
Espargos, Sal – Telephone: (+238) 2 411156 / 2411717 /2413726
PURCHASE AND SALE OF PROPERTY
Purchase and sale of properties between private entities
Step 1
Before purchasing any property, the buyer should request a property registration certificate at the Property Registry Office, so as to check if there are no burdens or charges levied on the property, including mortgages, shares, bondages, etc. it is also recommended that the promissory buyer find information in the City Council on housing license availability (for urban property), on the location of the property (if it’s land for construction) and on the tax value of the property.
Step 2
Once the property is reserved and the promissory contract of purchase and sale is celebrated, the next step should be the preparation of the public deed of purchase and sale, since real estate transactions are subject to Public Deed and registration in the Property Registry Office, which will be carried out by a Public Notary. The Public Deed of Purchase and Sale is subject to fees to be paid to the Public Notary, as set forth in decree-law no. 43/90 of June 29, which are around 1.4% of the sale price of the property.
The following documents are required for the Public Deed:
• Identification Document (ID or Passport);
• Power of Attorney if the buyer is represented by an entity;
• Promissory Contract of Purchase and Sale;
• NIF (Taxpayer Identification Number);
• Property Registration Certificate.
Step 3
Once the Public Deed process is finished, payment of the Single Tax on Property (IUP) shall be made, at the rate of 3% of the value of the contract.
Note: In case of free transfers (grants), the IUP tax will fall on the value assigned to the property by the Fiscal Administration. This tax shall be paid by the buyer or recipient, whether resident or
not in Cape Verde, within 30 (thirty) days after signing the public deed of purchase and sale, directly to the Municipal City Council where the property is located.
After the purchase, the property owner must make annual property tax payment to the municipal service, based on the value of the property assessed and registered in the City Council, at the time of payment. The tax rate of 3% (single tax) is levied on the value of the property being taxed (ad valorem tax), corresponding to 25% of the assessed value of the property by the Assessment Committee or the tax assessor determined by the Assessment Tax Regulation (which should be the value assessed and registered in the municipal property registry). This tax is due on December 31 of each year and payment must be made until April 30 of the following year.
Step 4
The last step of the process of purchasing property in Cape Verde is the registration of such purchase in the Property Registry Office. The process of registration will only be completed by the Property Registration Office after payment of the property tax (IUP) is made. The act of property registration requires the payment of fees and charges that are approximately 1.2% of the price of purchase and sale of the property.
In order to register the property, the owner must submit the following:
• Formal request of the property registration;
• a document of identification (ID or Passport);
• Certificate of Public Deed of Purchase and Sale (issued by the Public Notary Office);
• Proof of payment of property tax (IUP) - Single Tax on Property;
• Taxpayer Identification Number (NIF).
Registration of land sold by the City Council
Step 1
The following documents will be required:
• Certificate of deed by the City Council;
• Certificate of property registration issued by the Municipal Property Registry Office;
• Location map of the property.
Step 2
Once the above documents are ready, the property must be registered in the Property Registration Office, as follows:
• Formal request of property registration in the name of the purchaser, including the following attachments: certificate of public deed, certificate of property registration by the municipal authorities, and property location map;
• ID or Passport of the purchaser.
CONTRACT FOR THE SUPPLY OF ELECTRICITY AND WATER
I – Simple Contract
For contracts for the supply of electricity or water on:
• A previously inhabited house;
• A commercial establishment or workshop;
• A place that has been previously supplied with electricity and water;
• A new site in which the power branch has already been installed.
The following documents are required:
• Photocopy of the client’s ID or passport or of his/her lawfully designated attorney;
• Statement of inspection issued by the City Hall (certificate of habitability);
• Certificate of Property taxation payment issued by the Finances Department.
Contract Preparation
The contract is prepared once the following is confirmed:
• That the place of consumption has no active contract;
• That the client has no overdue payments in that place of consumption;
• That the client hasn’t just the last invoice in his/her name (referring to the last month) in debt, in another place of consumption;
• That there is a water and power meter as well as connecting devices available for immediate instalment.
The contract is concluded upon the issuance, in duplicate, of an invoice / receipt signed by both parties and paid on the signing act, and one copy shall belong to the customer and the other copy to the company. The general conditions of contract shall be attached to the customer’s copy.
Contract Costs
At the act of signature of the power supply contract the customer shall pay connecting fees of 130 CVE for the instalment of monophase plugs and 360 CVE for triphase plugs. At the time of signing water supply contract, the customer shall pay a connecting fee of 650 CVE.
In case of an amendment to contract for electricity supply related to changing the place of consumption, the customer pays the amount of 130 CVE.
II - Special Contracts
Special contracts can be created between parties in order to meet specific and temporary situations. They are categorised as temporary in nature, if they do not include water and power meter devices, and if they are not for consumption in places undergoing construction. This condition shall be proved through a valid "construction permit", issued by the municipal authorities.
Documents required:
• Photocopy of the client’s ID or passport or of his/her attorney, and in this case a copy of the proxy;
• Copy of construction permit issued by the City Council;
• Inspection: A technical team shall conduct an inspection at the place of consumption aimed at:
Verification of technical and safety conditions for power supply and for proper conservation of the power meter device, as well as the access conditions available to the company’s agents.
Verification of the possibility of implementing the final extension for power supply, according to the respective project, if the client intends to save the cost of the temporary extension of the plant. If this is not possible, the temporary extension will be budgeted and charged with the contract for the plant, which will then be replaced by the final extension, to be requested and paid by the client.
Definition of the gauge of the limiting circuit breaker to be installed, as well as the guarantee to be paid by customers of domestic LT (Low Tension).
Contract Preparation
The contract is sealed once it is confirmed that the client has no overdue payments with the power company Electra in any place of consumption. The contract is valid for the same period the construction permit is valid, and it may be renewed once the construction permit is renewed. Once the contract expires and there is no renewal, it will automatically be terminated.
III - Temporary Connection (power)
This type of connection is temporary, used in sporadic events such as rallies, parties, shows or other events that shall not exceed 3 days, subject to the following conditions:
Direct connection without power meter device;
Power supply: monophase or triphase power static supply in LT;
Released intensity: 15 amperes / phase controlled by appropriate circuit breaker.
Temporary power supply connections are made through a special contract and payment of fees related to connection and power supply.
REPORTING A CRIME
Crime reporting shall be made in the closest police station, through submission of identification (passport or identification card) by the complainant. It can also be made without any identification document, but the accuser’s identity must be confirmed later on.
INFORMATION ON CRIMINAL LAW
Purchase and consumption of alcohol
Selling, offering or supplying alcoholic beverages, as well as encouraging or facilitating the consumption of alcohol to children less than 18 years of age is prohibited in all circumstances. The owners, managers, and other people who commit the offence, shall be punished with a fine from 30.000 CVE to 300.000 CVE, and in case of regression the value ranges from 100.000 CVE to 1.000.000 CVE.
Drunkenness in public places
Capeverdean law does not provide any kind of penalty for cases related to drunkenness in public places, if the drunken person does not cause either physical or verbal disturbances that may affect society.
Driving under alcohol influence
Driving vehicles with and without engine, in public places or similar under the influence of alcohol, is prohibited. People driving under the influence of alcohol will be punished with a fine of 10.000 CVE to 50.000 CVE and will lose the ability to drive for a period of 8 days to 3 months, should they be assessed with an alcohol rate equal to or greater than 0.80 g/l and less than 1.20 g/l.
If the rate of alcohol in blood is greater than 1.20 g/l, the offender incurs the penalty of criminal imprisonment to a maximum of 3 months, as well as inhibition of the capacity to drive for a period of 30 days to 6 months.
Purchase, sale and consumption of drugs
Law n. 78/IV/93 provides for prison sentence of up to 3 months or fine up to thirty days for the person consuming drugs, or who grows, buys or holds plants, substances or preparations to his/her own consumption.
The law also provides for the penalty of imprisonment from 4 to 12 years to the person who, without authorization, cultivates, produces, manufactures, extracts, distributes, prepares, offers for sale, transports, imports or exports, illegal plants, substances or preparations of drugs considered high risk by law. The penalty of drug related crimes is imprisonment from between 1 to 5 years for dangerous drugs.
Nudism in public areas
Nudism in public areas within the national territory is not allowed, for it is considered to be shameful, and therefore punishable with imprisonment.
Homosexuality
Homosexuality is allowed in Cape Verde, and any discriminatory act of racial, political or sexual nature is prohibited. However, Capeverdean law does not provide for marriages of individuals of
the same sex in the national territory, nor for the legal adoption of children by the same group of people.
Sexual Offers
• Prostitution
There are no legal outlets in the country that promote the sex business, and any form of encouragement or promotion of the exercise of prostitution is prohibited. However, although it is a business prohibited by law, prostitution is a fact and a characteristic phenomenon rising in the country’s major tourist places.
• Sexual abuse of minors
Individuals who practice sex with children aged 14 years or less, or who promote sexual practice of minors of the same age with other people, will be punished with a prison sentence of
2 to 8 years. If there is sexual penetration the penalty shall be 4 to 10 years of imprisonment.
If there is sexual abuse of minors between 14 and 16 years of age, the law provides penalty which may range from 6 months to 4 years. In cases of sexual penetration, the prison penalty will be from 1 to 6 years.
• Practice of sex abroad
Capeverdean criminal law establishes a sentence of criminal imprisonment from 2 to 8 years to individuals who promote recruitment, transport or accommodation for children under 16 for sexual purposes abroad.
• Exploitation of minors for pornographic purposes
The use of children under 14 years of age (or incapable person) for exhibitionist or pornographic means will be punished with criminal imprisonment to a maximum of 3 years.
Possession of weapons
Cape Verdean criminal law dictates a penalty of imprisonment for up to 2 years or a penalty fine from 60 to 150 days (each day of penalty fine to be from 100 CVE to 20,000 CVE, as decided by the court according to the economic situation of the convicted) in cases where the holder of a regulated firearm or essential parts or components for a weapon, does not have the proper authorization or license to use it.
Similarly, individuals who possess a melee weapon or any other tool with the intention to use it as an aggressive weapon will be punished with imprisonment for up to 1 year sentence or a penalty fine of up to 100 days.
Homicide
Cape Verdean criminal law dictates a penalty of imprisonment for up 10 to 16 years in cases of manslaughter.
In cases of aggravated criminal acts, as established in article123 of the criminal law, punishment is a prison sentence ranging from 15 to 25 years, particularly in the following cases:
• Homicide committed with the use of poison, torture, choking or explosives.
• for the pleasure of killing and self satisfaction;
• Homicide by treason, concealment or other means or features that make it difficult or impossible for the victims to defend themselves;
• with the purpose to prepare, commit or hide another crime.
• for means of racial, religious or political hatred.
For further information, please contact:
Ministry of Justice
Telephone: (+238) 262 32 57 / 262 32 58
Address: Praia, Santiago
EDUCATION
The Education system in Cape Verde is comprised by:
• Pre-school education subsystems, which aim to provide children between four and six years of age additional training as a supplement to their families’ educational responsibilities.
• Basic Education or Primary Education, the main objective of which is to prepare children as individuals and members of a collective society.
• Secondary Education, which is the level that gives continuity to basic education and strengthens the development of knowledge and skills learned during the first years of education.
• Higher Education, which aims to provide scientific, technical and humanistic and cultural training, thus enabling the students for the exercise of activities related to conception, implementation, managing and research.
• Extra curricular education, including activities related to literacy, post-literacy, training, vocational training and general comprehensive education, linked to the general education system.
For further information, please contact:
Ministry of Education and Higher Studies
Telephone: (+238) 261 35 79 / 261 02 30
Address: Praia, Santiago
CHILD ADOPTION
Foreign nationals who want to adopt a Capeverdean child should make a request in their home country, in an adoption institution, which works with children. The applicant shall express his/her interest in adopting in an institution in his/her home country, which shall in turn submit such request to the ICCA (Cape Verde Child and Adolescent Institute) in Cape Verde, for appreciation.
Note: Currently, specialised institutions of about 80 countries may request for the adoption of Capeverdean children, namely institutions form the United Kingdom, Germany, USA, etc. Institutions of those countries not included in the list of countries with which ICCA has relations, may submit documentation to ICCA in Cape Verde proving the existence of the institution.
The whole process is carried out through representation by a lawyer who shall submit a request and a dossier with the following documents:
• Birth certificate of the child;
• Declaration of Salary by Employee as well as of proof of financial and economic conditions of the person willing to adopt;
• Written Consent by the father and mother of the child to be adopted;
• Criminal Record of the person willing to adopt ;
• Identity card or passport of the person who intends to adopt;
• If one cannot have children, the medical certificate attesting the situation;
• Declaration on Employment Status of the person willing to adopt;
• House Ownership Certificate if the person willing to adopt possesses a house;
• If the person willing to adopt is a foreign national, he/she must submit documents issued in the country of origin.
For further information, please contact:
ICCA – Instituto Cabo-verdiano da Criança e do Adolescente
Telephone: (+238) 261 17 06
Address: Plateau, Praia, Santiago
MARRIAGE IN CAPE VERDE
Non-resident foreign nationals getting married in Cape Verde must submit the following documents:
• Passport;
• Certificate of matrimonial capacity (original document) duly translated and notarised by the Embassy of Cape Verde, issued by the country of origin of the applicant;
• Birth certificate;
• Residence certificate of at least one of the fiancés (issued by the City Hall after at least one month stay in Cape Verde);
• At least two witnesses.
If the foreign national is residing in the country for more than six months, he/she must also submit the national identification card issued on behalf of foreigners.
For further information, please contact:
Registry, Identification and Public Notary Office/ Registry Office
Telephone: (+238) 241 11 56; Address: Espargos, Sal
Telephone: (+238) 231 53 13; Address: Mindelo, S. Vicente
Telephone: (+238) 261 58 23; Address: Fazenda, Santiago
RELIGION
Catholic religion also known as Roman Catholic is undoubtedly the most dominant religion in Cape Verde, representing a total of more than 90% of the national population. There are other Christian Churches established on the national territory, with particular emphasis on the Nazarene Church, the Seventh-day Adventist Church, the Church of Jesus Christ of the Latter-Day Saints (commonly called the Mormon Church), the Assembly of God, as well as other religious groups.
PET ENTRY REQUIREMENTS
The following documents are required for pet entry in Cape Verde:
Small and large Pets:
• Entry permit (300 CVE), issued by the Ministry of Agriculture and Environment, with services at Ports and Airports;
• Health Card with the respective vaccines (passport);
• Medical certificate issued in the country of origin, confirming that the animal is fit to enter Cape Verde;
• Payment of € 12 per kg, from London to Cape Verde (including packaging).
Note: If the conditions described above are not met, the animal is subjected to medical exams, and it may be returned to the country of origin, or slaughtered by the competent authorities.
The animals are classified as “small” or “large” according to the type of animal (e.g., dogs, cats, rabbits, etc...), although this is not a criterion clearly defined by the competent authorities. Small size pets are usually classified as small size animals.
There are no constraints that prevent animals from exiting Cape Verde, provided that they enter with a medical certification. However, new certificates should be issued at the exit of the animal from Cape Verde, certifying that it is fit to enter the country of origin.
After the arrival at the country of origin, the animal is subjected to further medical exams so as to check its health condition.
