3 ways to use your propety
A lifestyle purchase
A luxurious holiday home in the sun is part of most people’s dream lifestyle and you may decide to keep yours to yourself. If you do decide to buy as a lifestyle choice, then you can still benefit and experience all the luxurious facilities including access to communal areas, the resort pools and lounge areas.
You will also be able to enjoy the many bars and restaurants on a pay as you go basis, or indulge in an all-inclusive wristband during your stay at an extra cost. Access to the wireless network is complimentary and housekeeping is also available at an additional charge.
It will be your piece of paradise; a luxurious property with all the 5-star services you would expect from a world-renowned hotel brand.
Independent Rental Purchase
Many of our clients like to self-manage their properties, either fully independently by renting it to their network of family and friends, or listing their property online with an independent rental company.
This combines the lifestyle benefits of a holiday home in the sun with additional rental income. It may also benefit those looking for more personal usage than the standard 5 weeks per year offered within the Hotel Rental Program. It means you retain control of how your property is managed, setting the rental rate per week, and when it is available for paying guests.
The same benefits that you enjoy at the Resort will be available to your rental guests, as well as the option for purchasing additional extras such as the all-inclusive wristbands, spa treatments and house-keeping.
We’ve teamed up with some of the most reputable letting agents who can assist you in renting out your new property.
All property owners have the option to join the Hotel Managed Program.
Everything is taken care of on your behalf, and you will receive a share of the revenue derived from the touristic exploitation of your property. To top it all off, you’ll be entitled to holiday in your property for up to 5 weeks per year*.
Some may say you’ve got the best of both worlds! If you decide to place your property in the managed scheme, it will be marketed to millions of holidaymakers throughout the world, maximizing the opportunity for year-round rental income.
Meliá Hotels International, the largest resort operator in the world has an unrivaled reputation for delivering a world-class guest experience as
well as lucrative commercial partnerships in place with global tour operators and travel agencies. Our unique, hassle-free, hotel managed the program has been proven to deliver consistent rental returns for owners, as well as the opportunity for excellent capital growth.
You can join the program on a flexible rolling the one-year contract, providing you with day-to-day management control should make your circumstances change or you decide to take up a different rental
opportunity in the future.
Potential returns for the Hotel Managed Program
Potential risks and how they are mitigated
Cape Verde is politically stable with sound democratic institutions and a strong legal framework based on Portuguese law. The government has consistently encouraged foreign investment and fostered a dynamic business environment.
A significant risk for any developer is the availability of land. The developer is no longer exposed to site acquisition risks because it has already acquired (on a freehold or option basis) the land required for all of its planned projects.
There is negligible planning risk because Developer has secured outline planning consents for future projects. It provides significantly more detail than required to reduce the work involved in moving from an outline to detailed consent.
Developer manages the risks associated with construction, occupancy and operating costs by negotiating contracts with strategic partners that are subject to performance standards. The Developer employs experienced industry professionals to oversee the output of chosen partners.
This risk is mitigated by Developer's significant focus on diversified routes to market and in its strong relationships with third party agents and introducers, both in the UK and internationally.
Developer considers currency risk to be very low. Its activities are based predominantly in euros with some costs in Cape Verdean escudos, which are pegged to the euro.
Leading tour operators are confident of the country's future. Cape Verde has some unique attractions including its climate, political stability, and its growing popularity with tourists.
Although Developer's existing property portfolio is located in Cape Verde, it will soon achieve further diversification through a presence on multiple islands, with new aspirations to spread into European holiday destinations.
Developer's legal team closely monitors, as much as possible, proposed changes in law, to ensure that the Developer is involved in crucial decisions regarding the mitigation of those proposed changes. In Cape Verde, Developer is one of the largest tax generators in the country. The Developer benefits from a strong relationship with government authorities, which ensures it is involved in critical decisions regarding potential regulatory changes.
What costs are included in the program and what are the annual costs for the property?
Purchasing & Selling Taxes:
Transfer (IUP) Tax - flat rate of 1.5% on the attributed value to be paid before the Deed of purchase and sale.
There is a tax over the capital gains obtained in the sale of the property (the difference between sale price and acquisition price) of 1% under the terms of article 50
a) of the Personal Tax Code.
There is no succession tax in Cape Verde, however, the transfer of real estate assets by succession is subject to a 1.5% tax calculated on the tax value of the property.
Holding property/ Annual Rates - flat rate of 1.5% on 25% of the attributed value to be paid annually in April (or in two instalments in April and September of each year).
Inheritance/ Gift Tax - Any Property transmitted by inheritance or by gift is taxed at a flat rate of 3% on the attributed value.
Rental Income Tax (Cape Verde Only)
As per article 13 on the Personal Tax Code of Cape Verde, Rental Income obtained in Cape Verde is exempt from taxation in Cape Verde as long as the following conditions are cumulatively fulfilled:
➤ The property is located in a touristic project;
➤ The income is connected with the touristic exploration of the property made by the classified touristic operator;
➤ The income is supported by a written touristic exploitation contract (such as a rental agreement)
Regarding the above, the rental income obtained by the purchaser that is derived by the properties sold
by Developer within its touristic projects are exempt from taxation in Cape Verde and therefore will not be subject to 20% withholding tax.