Mortgages in Cape Verde: how they work (residents and diaspora)

A mortgage is the missing piece in many Cape Verde purchase plans — and the most question-laden, especially for buyers abroad. The rules are not complicated; they simply are not clearly written anywhere. Let's fix that.

How much banks lend

• Up to 70–80% of the appraised value (not the purchase price — if the appraisal comes in below the price, the difference is on you);
• Terms up to 25–30 years, with an age cap at contract end;
• Interest rates vary by bank and profile — always compare: the same loan can differ by more than a percentage point between banks;
• Life and multi-risk insurance are usually required with the loan.

In practice: for a 12 million CVE apartment, you need 2.4 to 3.6 million CVE as a down payment (€22,000–€33,000), plus 3% to 5% in transaction costs.

The usual documents

• ID and Cape Verdean tax number (NIF);
• Proof of income — employment contract, recent payslips, tax returns;
• Recent bank statements;
• The property's paperwork (the bank runs its own appraisal);
• Credit responsibility report, if you hold other loans.

Diaspora: the dedicated lines

This is where Cape Verde stands out: several banks run dedicated emigrant lines that accept income earned abroad — contracts and payslips from Portugal, France, the US, the Netherlands or Luxembourg. Practical points:

• Emigrant foreign-currency accounts carry favourable conditions and are often the gateway to credit;
• A history with the bank (regular savings, remittances) meaningfully improves terms;
• The process can be done remotely with a power of attorney — though one or two trips (or a representative) make everything smoother;
• Euro earners face no currency risk on the instalment — the CVE/EUR peg is fixed.

Mortgage or cash?

With gross rental yields of 5–8% in Praia, leverage can make sense — but run the maths on net figures, with a buffer for vacancy. For a home or holiday house, the question is simpler: does the instalment fit comfortably? Our investment guide helps with the numbers.

Three tips before signing

• Get simulations from 2–3 banks in the same month — the differences surprise;
• Read the fees — arrangement, appraisal, monthly processing: they weigh more than they look;
• Only sign the promissory contract after pre-approval, or protect yourself with a financing clause.

Taking the step? Browse properties for sale and the full buying process — and if useful, we can point you to the bank contacts our clients have had the best experience with.