CABO VERDE
Cape Verde, officially the Republic of Cape Verde, is an island country located in an archipelago formed by ten volcanic islands in the central Atlantic Ocean. Situated about 570 kilometers off the coast of West Africa, the country covers an area of just over 4,000 square kilometers.
The archipelago was settled during the Portuguese Age of Discoveries and, as the colony grew in importance along the maritime routes between Europe, the Americas, India, and Australia, its population steadily increased. After gaining independence from Portugal in 1975, many Cape Verdeans emigrated, creating a significant diaspora in Europe, America, and Africa. Today, it is estimated that around 580,000 people live in Cape Verde, while the Cape Verdean diaspora numbers over one million people worldwide.
The Cape Verdean economy is strongly based on tourism and foreign investment, benefiting from year-round mild weather, diverse landscapes, and rich cultural heritage, especially in music. Since independence in 1975, the name “Cape Verde” has referred both to the archipelago and the sovereign state.
The volcanic islands that make up Cape Verde are mountainous and relatively small. The highest point in the archipelago is the active volcano on the island of Fogo, reaching an elevation of 2,829 meters. The country consists of 10 islands, 9 of which are inhabited, along with several uninhabited islets, organized into two groups:
To the north, the Barlavento Islands: from west to east: Santo Antão, São Vicente, Santa Luzia (uninhabited), São Nicolau, Sal, and Boa Vista. The group also includes the uninhabited islets Branco and Raso (between Santa Luzia and São Nicolau), the Ilhéus dos Pássaros (off the coast of Mindelo on São Vicente), the Rabo de Junco islets (near Sal island), as well as the islets of Sal Rei and Baluarte (off the coast of Boa Vista island).
To the south, the Sotavento Islands: from east to west: Maio, Santiago, Fogo, and Brava. Also included are Santa Maria Islet (in front of the city of Praia on Santiago Island), the islets Grande, Rombo, Baixo, de Cima, do Rei, Luís Carneiro, and Isidro Sapado (about 8 km from Brava Island), and the islet of Areia, near the coast of Brava.
The largest islands are Santiago, in the southeast, where Praia, the country’s capital and main urban center, is located, and Santo Antão, in the extreme northwest. The second-largest urban center is Mindelo, on the island of São Vicente.
Cape Verde’s population ranks among the healthiest in Africa. Since independence, the country has made significant progress in social and health indicators. Cape Verde remains classified as a medium human development country and, as of 2023, ranks as the 8th best African country on the Human Development Index (HDI), with a life expectancy around 73.5 years and increasing levels of education.
POLITICS. Cape Verde is a stable country with a well-established democratic system. The government promotes consensus and political stability, supporting private investment and public-private partnerships focused on tourism, services, and the blue economy. The country offers a secure business environment, legal guarantees, and predictability for both domestic and foreign investors.
UPDATED MACROECONOMIC DATA (as of 2023/2024)
Tourism’s contribution to GDP: around 25% (the sector employs over 50,000 people directly or indirectly)
Annual GDP growth: 2021 – 7.0%, 2022 – 17.7% (post-pandemic recovery), 2023 – 5.1%
Projected GDP growth for 2024: between 4.5% and 5.0%, according to the Bank of Cape Verde and the IMF
Cape Verde maintains a special partnership agreement with the European Union (EU), benefiting from preferential access to European markets.
Tourism in Cape Verde continues to expand strongly, with average growth exceeding 10% per year since 2022, following the sector’s post-COVID-19 recovery. The island of Boa Vista stands out as the main driver of this growth, accounting for more than 40% of the country’s tourism flows. Significant investments are underway, with plans for over 3,500 new hotel rooms in Boa Vista by 2027, representing a major opportunity for investors and businesses seeking emerging markets.
Why Invest in Cape Verde
Over 60 direct flights per week from major European capitals, with an average flight time of only 5.5 hours — no jet lag thanks to minimal time difference.
Pleasant climate all year round, with temperatures ranging between 25ºC and 30ºC.
Stunning beaches with fine white sand and crystal-clear turquoise waters.
One of Africa’s most stable democracies, with political and social stability.
A growing economy, with an average GDP growth rate of around 5% in recent years.
Tourism growing at approximately 10–15% annually, driving strong demand in hospitality and real estate.
Transparent legal system guaranteeing full property ownership rights for foreign investors.
Ranked as one of the most attractive destinations in Africa for foreign direct investment.
Attractive tax incentives and customs duty exemptions for investors.
Excellent potential for high rental yields on real estate investments due to strong tourist demand.
Foreigners can freely purchase property in Cape Verde, as there are no restrictions on foreign ownership.
Property buyers who invest at least €80,000 anywhere in Cape Verde—or a minimum of €120,000 specifically on the islands of Boa Vista and Sal—are eligible to apply for a Cape Verde residence permit. This residence permit can grant benefits such as longer stays without visa renewals and potentially favourable taxation, depending on individual circumstances.
The exchange rate is stable, with a fixed peg of €1 = 110.265 CVE (Cape Verdean Escudo).
