What additional costs are there in relation to the purchase?
You will pay stamp duty, legal fees, wealth tax and purchase tax. The latter is just 3%(of the declared value at the time of deeds transfer) but sometimes split 50/50 with the purchaser, so that you pay 1.5% of the amount shown on the title deeds. Traditionally though it is the purchaser who pays the 3% for both parties.
A. If you buy a property in Cape Verde as an individual buyer, you will be required to pay Stamp Duty at the rate of 0.2% of the purchase price. In addition, Transfer Tax at a flat rate of 3% on the attributed value will be paid before the Deed of purchase and sale. The total tax comes to just under 6% of the value stated on the notary document. Q.
As a rough guide, in the case of a new property, the total cost paid to a solicitor (charges for their normal service,land registry fees, notary’s fees, taxes, associates’ fees, bank charges and so on) normally come to about 26% of the price of the property. In the case of a resale property the total cost is likely to be about 5%. In both cases, if the property is less than about £50,000 the percentage will be higher. If the property is over about £500,000, the cost will usually be a little lower. These, of course, can at this stage be only the most general of estimates. There will be additional legal charges, fees and taxes if you are taking out a Bulgarian mortgage or if you choose to buy in the name of a company. Your lawyer will give you an estimate of these costs when they know more about your plans. They will, in any case, give you a more detailed estimate of the likely overall cost once they know more about your particular purchase.
