Cape Verde now has its own municipal tax on the transfer of real estate, in force since 1 January 2026. This guide sets out what the Código do ITI places on the buyer — the taxable event, the person liable, the base, the rate, the return, the deadlines, and the role of the notary and the land registry — drawing solely on the text published in Boletim Oficial n.º 46, I Série, of 06-06-2025.
The ITI in 2026: a new municipal tax, separate from property tax
Lei n.º 54/X/2025 (B.O. n.º 46, I Série, of 06-06-2025) approves the Código do Imposto sobre a Transmissão de Imóveis, in force on 1 January 2026 (art. 4.º). The preamble states the break plainly: separating the taxation of ownership from the taxation of transfer; the ITI "pretende tributar a aquisição dos imóveis tendo então como sujeitos passivos, em regra, o adquirente dos mesmos".
The tax is municipal: it "incide sobre o valor tributável dos prédios rústicos, urbanos e mistos, situados no território de cada município, constituindo receita dos municípios onde os mesmos se localizem" (art. 1.º n.º 1). The concept of prédio (property) is that of the Código do IPI (art. 1.º n.º 2). Lei n.º 55/X/2025, published in the same B.O., repeals the former regime (Lei n.º 79/V/98 — the single property tax —, Decreto-Lei n.º 18/99 and the scattered legislation).
Who pays the ITI: the taxable person is the buyer
"O imposto é devido pelas pessoas, singulares ou coletivas, para quem se transmitam os bens imóveis" (art. 4.º): the person legally liable is the buyer. The same article sets out the special cases:
- partitions: the acquirer of property whose value exceeds their share (subpara. a);
- contracts for a person to be named: the original contracting party (subpara. b);
- exchanges: the party receiving the property with the higher taxable value (subpara. c);
- assignable promises and assignments of contractual position: the original promisee-buyer and each successive one, with no exemption or reduction (subpara. e);
- irrevocable powers of attorney and their substitution: the attorney or substitute attorney, with no exemption (subpara. f);
- assignment with onward resale to a third party: the original contracting party, unless they declare, within thirty days, that nothing beyond the sinal (deposit) was paid or received (subpara. g).
Which transactions trigger the ITI
The tax applies to transfers "a título oneroso, do direito de propriedade ou de figuras parcelares desse direito, sobre bens imóveis situados no território nacional" (art. 2.º n.º 1). The following are treated as a transfer for consideration (n.º 2): promises of acquisition and alienation "logo que verificada a tradição para o promitente adquirente, ou quando este esteja a usufruir dos bens" (subpara. a); hire-purchase (subpara. b); the acquisition of shares bringing a partner to at least 75% of the capital, or reducing the company to two spouses married under the general community or community of acquisitions (subpara. c).
Art. 2.º n.º 3 expressly covers the assignable promise (subpara. a), the assignment of contractual position (subpara. b), the irrevocable power of attorney to alienate — where "o representado deixe de poder revogar a procuração" (subpara. c) —, its substitution (subpara. d) and the resale by the promisee-buyer (subpara. e, disapplied at n.º 4 in one specific case). Also charged (n.º 5) are rescission or termination of the promise contract occurring more than five years after delivery (subpara. a), exchanges on the difference in values (subpara. b) and the excess share in a division or partition (subpara. c). Art. 3.º adds transfers upon death and donations. The preamble targets two arrangements: irrevocable powers of attorney and assignable promises, which "passam a integrar a base de tributação".
On what base: the taxable value
"O imposto incide sobre o valor tributável dos imóveis" (art. 7.º n.º 1). Valuation follows the Código do IPI (art. 9.º n.º 1). For property omitted from the matriz (the fiscal register) or registered without a taxable value, the value comes from a valuation, at a rate of 1% (art. 7.º n.º 2). Integral parts are added to the base (n.º 3). N.º 4 covers calculation cases (right of superficie, dação de bens em pagamento — giving goods in payment —, bare ownership, usufruct, partitions, financial leasing), and n.º 5 defines the "valor constante do ato ou do contrato" — from the price to "quaisquer encargos a que o comprador ficar legal ou contratualmente obrigado" (subpara. h).
For carved-out rights, art. 8.º subpara. a) provides a deduction scale for the value of the ownership separated from a life usufruct, use or habitation, by age: from 80% to 10% (85 or over). The other cases run from 20% (perpetual right of superficie: ownership of the land) to a 10% deduction per five-year period, with a cap of 80% (temporary right of superficie, subpara. i)) and a 30% reduction for use or habitation other than by renunciation (subpara. c)). Gratuitous transfers are levied on the taxable value (art. 10.º).
The rate: 1%, and 3% under a privileged tax regime
"A taxa do imposto é fixada em 1%" (art. 11.º n.º 1). The rate rises to 3%, "não se aplicando qualquer isenção ou redução", as soon as the seller or buyer benefits from a privileged tax regime — "tal como definido no Código Geral Tributário" (n.º 2). The Code thus refers to the Código Geral Tributário without setting out its content.
The exemptions set out in the code
Exempt under art. 6.º n.º 1: the State and local authorities (subpara. a); properties classified as national monuments or buildings of public interest (subpara. b); acquisitions by credit institutions through dação em cumprimento or in enforcement, insolvency or bankruptcy proceedings, to realise claims from loans or guarantees (subpara. c). The giving in payment requires more than one year between the first default and the recourse to it, with no special relations between creditor and debtor (n.º 4). Local authorities may grant an exemption, on a proposal approved by the municipal assembly (n.º 2); benefits under special statutes and international conventions are preserved (n.º 3).
The taxable event and when the assessment happens
"A obrigação tributária constitui-se no momento em que ocorrer a transmissão ou em que se verificar um qualquer dos fatos a que se refere o artigo 2º" (art. 5.º n.º 1). Assessment precedes the deed: "A liquidação do imposto precede o ato ou facto translativo dos bens" (art. 15.º n.º 1), unless payment is deferred. For the assignable promise, the assignment and the power of attorney, it happens immediately after their execution (n.º 2). If the final value differs from the base used, there is additional assessment or refund; cancellation applies where the buyer obtains a rate reduction or an exemption (n.º 3).
Declaring and paying: where, when, how
Assessment is initiated by the parties concerned: a duly completed return on the official form, filed at the municipal tax office for the area where the property is located or electronically (art. 12.º n.º 1); it is also required before the act in exemption cases (n.º 2). Its content is set out in art. 13.º (identification of the property, values, indication of an act under n.º 3 of art. 2.º). Payment: "no próprio dia da liquidação ou até ao terceiro dia útil seguinte", on pain of the transfer being without effect (art. 26.º n.º 1); thirty days in judicial cases (n.º 2). Proof comes from the return under art. 12.º together with the collection receipt (art. 27.º). The limitation period is governed by the Código Geral Tributário (art. 28.º).
The notary and the registry: two tax locks
The notary may not act "sem que lhes seja apresentado o extrato da declaração referida no artigo 12º acompanhado do correspondente comprovativo da cobrança" (art. 33.º n.º 1); in exemption cases the notary notes and files the supporting document (n.º 2). The notary transmits to the tax services, on the last day of April, July, October and January, the list of the previous quarter (n.º 3), and is jointly and severally liable if the proof was not required (n.º 4). On the registry side: "Nenhum facto, ato ou negócio jurídico relativo a bens imóveis sujeitos a registo, pode ser definitivamente registado sem que se mostre pago o imposto" (art. 34.º).
Special cases the code resolves
- Divisions, partitions, judicial sales: the corresponding legal instruments serve as the basis for assessment (art. 16.º).
- Right of preemption exercised in court: the tax assessed on the preferred party is refunded (art. 17.º).
- Person to be named: a written declaration identifying the third party within fifteen days (art. 18.º n.º 1).
- Hereditary share: calculated on the property value, corrected once the share is known (art. 19.º).
- Prédio omisso: assessed on the taxable value, corrected ex officio (art. 20.º).
- Part of a property or cadastral fraction: later discrimination, at the expense of the Câmara Municipal (art. 21.º).
- Change of possessors: titles to be presented within thirty days; assessment within five days (art. 22.º).
- Excessive value: a valuation may be requested under the IPI Code before the act (art. 23.º).
When a deed falls through: cancellation and refund
If the transfer event for which the tax was paid does not take place within two years, "fica sem efeito a liquidação" (art. 15.º n.º 4). Cancellation may be requested at any time (art. 30.º) and gives rise to a refund (art. 31.º). Court clerks transmit to the tax services, by the 15th of the following month, settlements effecting taxable transfers (art. 32.º).
ITI, IPI, IRPS: three taxes not to confuse
- ITI — a one-off transfer tax owed by the buyer (art. 1.º, art. 4.º): the subject of this guide.
- IPI — the annual tax on ownership; the ITI Code refers to it for the concept of prédio (art. 1.º n.º 2) and for valuation (art. 9.º).
- IRPS category E — taxes the seller's income; a different logic from the ITI.
The IPI and ITI Codes replaced the regime repealed by Lei n.º 55/X/2025. For the detail, see the guides linked at the end.
What a buyer should check before signing
- Who is liable — as a rule the buyer (art. 4.º).
- The nature of the transaction: a plain promise is not taxable, unless delivery or enjoyment passes to the promisee-buyer (art. 2.º n.º 2 subpara. a)).
- Assignment clauses, irrevocable power of attorney and substitution, expressly covered (art. 2.º n.º 3).
- The rate: 1%, or 3% under a privileged tax regime (art. 11.º).
- The value used: the taxable value, increased by integral parts (art. 7.º).
- Possible exemptions (art. 6.º).
- The timing: return before the act, payment on the day of assessment or by the third following working day (art. 26.º).
- Proof of payment: without it, neither the notary nor the registry can proceed (arts 33.º and 34.º).
Frequently asked questions
Before you commit
To place the ITI in the full cost of a purchase, the annual tax on ownership, the exit and IRPS category E, or the effect of registration, see the guides below.
This article describes the regime set out in Boletim Oficial n.º 46, I Série, of 06-06-2025 (Lei n.º 54/X/2025, approving the Código do ITI). No later amendment has been researched, and this text is not tax advice: for your particular situation, consult a professional.