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Vacation Rental Laws in Cape Verde (Cabo Verde)

Vacation Rental Laws in Cape Verde (Cabo Verde)

Cape Verde (Cabo Verde)

Introduction
Introduction to Vacation Rental in Cape Verde (Cabo Verde)

Cape Verde, also known as Cabo Verde, is an archipelago of ten volcanic islands located off the west coast of Africa. Known for its stunning beaches, rich cultural heritage, and vibrant music scene, popular destinations in Cape Verde include Sal, Boa Vista, and Santiago. These islands attract tourists from around the globe, contributing significantly to the country’s economy. Short-term rentals (STRs), commonly referred to as “Alojamento Local” in Portuguese, have become a popular lodging choice for tourists seeking affordable and unique accommodations.
Cabo Verde is a stunning island chain with a captivating blend of mountains, beaches and peaceful seaside villages. On Santo Antão, craggy peaks hide piercing green valleys of flowers and sugar cane, ideal for epic hikes.
The short-term rental market in Cape Verde has witnessed remarkable growth in recent years, driven by increased tourism. Platforms like Airbnb, Booking.com, and Vrbo are widely used for listing properties. STRs play a crucial role in the country’s tourism sector, contributing significantly to government revenue through taxes and fees. In 2022, tourism, including revenue from short-term rentals, accounted for approximately 25% of Cape Verde’s GDP. With the government implementing new regulations to balance tourism development and local community interests, understanding the rules governing STRs in Cape Verde is essential for operators and investors.

Overview

Cape Verde, also known as Cabo Verde, is an archipelago of ten volcanic islands located off the west coast of Africa. Known for its stunning beaches, rich cultural heritage, and vibrant music scene, popular destinations in Cape Verde include Sal, Boa Vista, and Santiago. These islands attract tourists from around the globe, contributing significantly to the country’s economy. Short-term rentals (STRs), commonly referred to as “Alojamento Local” in Portuguese, have become a popular lodging choice for tourists seeking affordable and unique accommodations.
Cabo Verde is a stunning island chain with a captivating blend of mountains, beaches and peaceful seaside villages. On Santo Antão, craggy peaks hide piercing green valleys of flowers and sugar cane, ideal for epic hikes.
The short-term rental market in Cape Verde has witnessed remarkable growth in recent years, driven by increased tourism. Platforms like Airbnb, Booking.com, and Vrbo are widely used for listing properties. STRs play a crucial role in the country’s tourism sector, contributing significantly to government revenue through taxes and fees. In 2022, tourism, including revenue from short-term rentals, accounted for approximately 25% of Cape Verde’s GDP. With the government implementing new regulations to balance tourism development and local community interests, understanding the rules governing STRs in Cape Verde is essential for operators and investors.

Property
Overview
Currently, there is no specific national association for short-term rental operators in Cape Verde. However, the tourism sector is regulated by the Instituto do Turismo de Cabo Verde, the public institute responsible for overseeing tourism activities in the country. For guidance and information on operating short-term rentals, you may consider contacting them through their official Facebook page:
Additionally, the Cape Verdean Institute for Quality Management and Intellectual Property (IGQPI) has established standards for small tourist accommodations, which may be relevant to short-term rental operators.
While there isn't a dedicated association for short-term rental operators, these organizations can provide valuable resources and guidance to help you navigate the regulatory landscape in Cape Verde.

Property
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short term rentals
What is Vacation Rental in Cape Verde (Cabo Verde)?
What are short Term Rentals in the Country?
In Cape Verde, short-term rentals are referred to as “Alojamento Local” in Portuguese, which translates to “local accommodation” in English. These rentals are defined as furnished accommodations offered to tourists and other temporary guests for stays typically shorter than 30 days. The term encompasses various types of properties, including apartments, villas, guesthouses, and individual rooms.
On popular booking platforms like Airbnb and Booking.com, short-term rentals in Cape Verde are often categorized as “vacation rentals,” “holiday homes,” or “guest accommodations.” According to Cape Verde’s tourism and housing regulations, Alojamento Local properties must be registered with local municipal councils and adhere to specific operational guidelines to ensure guest safety and comfort.
The rise of Alojamento Local in Cape Verde has been fueled by its affordability and flexibility compared to traditional hotels. However, the government has implemented measures to regulate the sector, requiring operators to obtain licenses and maintain detailed records of guests. These efforts aim to enhance the quality of accommodations while promoting sustainable tourism practices across the archipelago.

Is Subletting Legal?
Is Subletting Legal in Cape Verde (Cabo Verde)?
In Cape Verde, subletting properties for short-term rental purposes is generally legal, provided the tenant obtains explicit permission from the property owner. Subletting without the owner’s consent or in violation of the lease agreement can lead to legal disputes and potential eviction. It is recommended that tenants wishing to operate Alojamento Local properties consult their landlords and secure written approval.
Additionally, tenants must ensure that the property is registered with the local municipal council as Alojamento Local and that they adhere to all operational regulations. This includes paying the required taxes and maintaining accurate guest records. Some municipalities may impose additional restrictions on subletting, particularly in areas with high tourism demand or housing shortages.
Platforms like Airbnb and Booking.com often remind subletting operators to verify their legal rights before listing properties. This approach helps prevent unauthorized rentals and promotes compliance with local laws.

National Association for STR Owners
What is the maximum length of stay in Cape Verde (Cabo Verde)?
What is the maximum length of stay?
In Cape Verde, the length of stay for guests in accommodations is primarily determined by the terms set by the accommodation providers and the visa regulations applicable to the guests. The government does not impose specific regulations on the duration of guest stays within accommodations.
For visitors, the standard visa policy allows for stays of up to 30 days without a visa. To stay longer, travelers must comply with the Cape Verdean government's entry requirements, which may include obtaining a visa or extending their stay through appropriate channels.
Accommodation providers should ensure that their operations comply with local laws and regulations, including any licensing requirements and guest registration procedures. It's advisable for operators to consult with local authorities or legal experts to ensure full compliance with all applicable laws.

Is there any National Registration Requirement or Permit?
In Cape Verde, mandatory registration with the local municipal council is required to operate short-term rentals, known as "Alojamento Local," ensuring adherence to national tourism laws. The registration process involves multiple essential steps. Firstly, hosts must select a business structure and register their business name at the Chamber of Commerce, a process costing approximately CVE 20,000 and typically completed within two days. Subsequently, obtaining a Tax Identification Number (NIF) from the DGCI and establishing a business bank account are necessary. Licensing includes securing both a Municipal License (required in Praia) and a hospitality-specific Activity License. Registration with the national Social Security system for the business and any employees is also mandatory. Crucially, accommodations must meet local health, safety, and building standards. Required registration documents include identification, proof of address, property ownership or lease documentation, the NIF certificate, a business plan detailing operations, and Health and Safety Compliance Certificates. A registration fee, varying by property specifics, is applicable. Upon successful application, a registration number is issued and must be displayed. Failure to register can result in penalties, including fines and potential suspension of operations. Cape Verde enforces these measures to regulate the growing STR market, maintain tourism service quality, and promote fair competition among accommodation providers.

Is there a need for Permission from Landlord/Local Council/Neighbors?
Operating guest accommodations requires adherence to specific legal and regulatory frameworks. The necessity for obtaining permissions from landlords, local councils, or neighbors depends on several factors, including property ownership status and local municipal regulations.
For Host:

  • Landlord Consent: If you are renting a property and intend to use it for short-term rentals, it is imperative to review your lease agreement. Unauthorized subletting is explicitly listed among the grounds on which a landlord may file for eviction. Therefore, obtaining explicit permission from your landlord is essential before proceeding with short-term rental operations.

For Property Owners:

  • Municipal Regulations: Property owners must comply with local municipal regulations governing short-term rentals. This typically involves registering the property with the local authorities and obtaining the necessary permits or licenses to operate legally.

Neighbor Consent:

  • Community Considerations: While there may not be a legal requirement to obtain consent from neighbors, it is advisable to maintain open communication to address any potential concerns related to noise, increased foot traffic, or other disturbances that short-term rentals might cause.

Cape Verde seeks to balance the interests of hosts, guests, and local communities. Hosts are advised to review their lease agreements, consult with landlords, and comply with municipal council requirements to operate legally and harmoniously within their neighborhoods.

Is Short-term rental Income taxable?
In Cape Verde, income from "Alojamento Local" guest accommodations is subject to national taxes including income tax and value-added tax (VAT), alongside local property tax. For resident hosts, rental income is generally taxed as business and professional income, with options for taxation regimes: Standard Organized Accounting, where net income is taxed at progressive personal income tax (PIT) rates, or the Special Regime for Small and Micro-Sized Companies (SRSMC), featuring a flat 4% tax on gross sales that replaces corporate income tax, VAT, and other taxes. Non-resident hosts face a flat 20% withholding tax on gross rental income. Value-Added Tax (VAT) in Cape Verde has a standard rate of 15%, but a reduced rate of 10% applies specifically to lodging services from hotels and similar establishments, as well as for catering and tour operators that are resident micro, small, and medium-sized companies. Notably, there is a personal income tax exemption on net income up to CVE 220,000 annually, with progressive PIT rates starting at 16.5% for income above this threshold. While specific VAT exemptions might exist, they are condition-dependent. Furthermore, hosts are also liable for Property Tax (Imposto Único sobre o Património - IUP), a municipal tax with rates varying based on property value and location.

Is there any National Tourism Fund or Tourist Tax?
Cape Verde mandates a "Taxa Turística," or tourist tax, for short-term rental guests to support the national tourism sector. Implemented in May 2013, this tax funds tourism development, social projects, and environmental conservation. The tax amount, initially CVE 220 per person per night (around 2 euros), increased to CVE 276 (about 2.50 euros) in January 2023, applicable for a maximum of 10 consecutive nights. Exemptions include children under 16, Cape Verde residents, and stays exceeding 10 nights in the same accommodation. Revenues from the tax are used to promote tourism, finance social initiatives like "Programa MAIS," and improve tourism infrastructure and environmental protection. Typically, accommodation establishments collect the tax from guests, and it's advisable for visitors to confirm if the tax is included in their booking price. This tourist tax underscores Cape Verde's dedication to sustainable tourism by reinvesting tourism revenue into the country's development and preservation.

Is there any Guest Registration and Reporting Requirement?
In Cape Verde, as a host operating guest accommodations, you are required to register and report guest information to national authorities. This practice is mandated to ensure public safety and facilitate the monitoring of tourism activities.
Guest Registration Requirements:

  • Mandatory Registration: Hosts must collect and report personal details of all guests, including full name, nationality, passport number, date of birth, and date of arrival and departure. This information is typically submitted to the local police or immigration authorities.
  • Reporting Timeline: The collected guest information should be reported to the authorities within a specified timeframe, often within 24 hours of the guest's check-in. This ensures timely data submission and compliance with legal requirements.

Data Retention Obligations:

  • Retention Period: Hosts are generally required to retain guest information for a certain period, which may vary based on local regulations. This retention is crucial for record-keeping and potential future reference by authorities.
  • Data Protection Compliance: While retaining guest information, hosts must adhere to data protection laws, ensuring that personal data is stored securely and used solely for the intended purposes. This includes implementing measures to protect data from unauthorized access and ensuring its confidentiality.

Please note that specific requirements may vary depending on the municipality and the type of accommodation. It is advisable to consult local authorities or legal advisors in Cape Verde to ensure full compliance with all applicable laws and regulations

Is there any National Health and Safety Requirements?
In Cape Verde, health and safety standards for accommodation services, including short-term rentals, are legally mandated by Decree-Law No. 45/2022, emphasizing guest well-being and tourism quality. Key requirements include robust fire safety measures like smoke detectors and fire extinguishers, clearly marked emergency exits, and stringent sanitation and hygiene practices with regular cleaning and proper waste disposal. Maintaining structural integrity through regular building inspections and hazard prevention is also crucial. While accessibility for guests with disabilities is encouraged, all hosts are obligated to provide clear emergency procedures, including emergency service contacts and nearby health facility information to guests. Compliance with these regulations is mandatory, subject to inspections, and non-compliance can result in penalties like fines or license suspension. Hosts are advised to stay updated on regulations, implement best practices beyond the minimum requirements such as carbon monoxide detectors and first aid kits, and maintain communication with regulatory bodies to ensure a safe and welcoming environment and contribute positively to Cape Verde's tourism.

Is there any Platform Accountability Requirement?
In Cape Verde, the regulatory framework for "Alojamento Local," primarily places the responsibility of compliance on property owners and hosts. Hosts are required to ensure that their properties meet national and local regulations, which include obtaining necessary licenses, adhering to safety standards, and registering guest information with authorities.
As of now, there is no specific legislation in Cape Verde that mandates online platforms, such as Airbnb or Booking.com, to verify the compliance of the listings they host. The onus remains on individual hosts to ensure their properties are legally compliant.
However, it's important to note that regulatory practices are evolving globally. In various countries, there is a growing trend to hold online platforms accountable for the compliance of listings. For instance, the European Union has proposed regulations requiring online platforms to verify host compliance and report data to authorities. While Cape Verde is not an EU member, such international trends could influence future local regulations.

Is there any Anti-Discrimination Law?
In Cape Verde, while no specific law targets vacation rental discrimination, general anti-discrimination laws firmly apply to "Alojamento Local" hosts. Cape Verde's Constitution guarantees equality for all, prohibiting discrimination based on race, gender, origin, religion, or any personal characteristic. The Penal Code criminalizes discrimination, with potential penalties including fines or imprisonment. While focused on employment, the Labor Code reflects a broader national stance against discrimination, relevant to hospitality. Similarly, the Gender-Based Violence Law underscores Cape Verde's commitment to equality and protection for all. Therefore, hosts must treat all guests equally, avoiding any discriminatory practices based on protected characteristics, as such actions are illegal and carry legal consequences. Hosts should familiarize themselves with these non-discrimination laws, create inclusive and welcoming environments with clear equal treatment policies, and stay informed about their legal responsibilities to ensure legal compliance and positive guest experiences for everyone.

Is there any Data Sharing Requirements?
In Cape Verde, the rules for "Alojamento Local" (local accommodations) mainly focus on property owners and hosts, making them responsible for following the regulations. Right now, there’s no specific rule that requires online platforms listing these accommodations to share data with the government.
That said, Cape Verde does have a data protection law, called Law No. 41/2013, which applies to anyone handling personal data, including online platforms. This law requires that personal data be kept secure and confidential. While it doesn’t specifically say platforms must share data with the government, it does set rules for how data should be handled and when it can be shared.
Since digital regulations are always changing, it’s a good idea for hosts and platforms to stay updated on the latest laws. If you’re unsure about anything, reaching out to local authorities or a legal expert can help you stay compliant and avoid any issues.

Is there any National Insurance Requirement?
Currently, Cape Verde does not mandate liability insurance for short-term rental hosts. However, hosts are encouraged to obtain insurance coverage to protect against potential liabilities, such as property damage or injuries occurring on the premises. Many local and international insurance providers offer tailored policies for operators of "Alojamento Local" properties.
Platforms like Airbnb provide some level of liability protection through their host insurance programs. For instance, Airbnb’s Host Guarantee and Host Protection Insurance offer coverage for property damage and third-party liability claims. Hosts should review these policies to understand their scope and limitations and consider supplementary insurance to cover any gaps.
Some rental platforms offer liability protection as part of their services. For instance, Vrbo provides owners and property managers with $1 million in primary liability coverage for all stays processed online through their platform.
By investing in insurance, hosts can safeguard their operations and provide a secure environment for their guests, enhancing the overall quality of Cape Verde’s short-term rental market.

Is there any National Zoning law/Cultural Heritage law?
In Cape Verde, specific laws protect culturally and historically important areas to preserve the nation's heritage. Law No. 85/IX/2020 is key, safeguarding both tangible and intangible cultural heritage for future generations. Hosts with properties near these sites must ensure their operations do not harm or misuse these areas. Any construction, renovation, or business activities in protected zones need permission from authorities to align with preservation goals. Operating without authorization can lead to penalties like fines and mandatory restoration. Cape Verde's Constitution also stresses the importance of cultural heritage protection. To comply, hosts must secure all necessary permits, proactively consult with heritage and tourism authorities, and adopt culturally sensitive, sustainable practices. This responsible approach is crucial for preserving Cape Verde’s heritage and enriching the guest experience.

Is there any Environmental Regulations that affects STR?
As a host of guest accommodations in Cape Verde, it’s important to understand and comply with the environmental regulations that apply to your property. These rules are designed to protect the country’s natural resources, promote sustainability, and ensure a positive experience for your guests. This includes managing waste properly with recycling bins and safe disposal of hazardous materials, conserving water by using efficient fixtures and treating wastewater, and reducing energy use with efficient appliances and renewable energy like solar panels. For properties near the coast, hosts must protect marine ecosystems by avoiding harm to coral reefs and managing beach activities responsibly. If building or renovating, an Environmental Impact Assessment (EIA) may be required to ensure the project doesn’t harm the environment. Hosts must also minimize noise and air pollution to maintain a peaceful environment. Compliance is mandatory, and violations can result in fines or suspension, so hosts should obtain permits, follow regulations, and adopt sustainable practices like using eco-friendly products and educating guests on conservation. These steps help protect Cape Verde’s natural beauty and support sustainable tourism.

Is there any National Tenant Protection Law?
In Cape Verde, tenant protections are governed by the General Regime for Urban Leasing (RGAU), established under Law No. 101/VIII/2016, which outlines the rights and obligations of landlords and tenants in urban lease agreements. The law is pro-tenant, offering strong protections, such as lengthy eviction processes that can take around six months or longer if contested, and requiring mutual consent for rent changes or lease terminations. Landlords can only end leases under specific conditions, like mutual agreement, breach of contract, or lease expiration, but the law prioritizes tenant stability, making evictions challenging. Rent agreements must be fair and transparent, with any changes requiring legal procedures and mutual agreement. Additionally, the Civil Code of Cape Verde provides further regulations on property rights, leases, and dispute resolution. For tenants, this framework ensures security and clear rights, while landlords must carefully follow legal procedures to protect their interests. Overall, Cape Verde’s laws aim to create fair and balanced relationships between landlords and tenants, with a strong focus on protecting tenant rights.

Is there any Reporting Requirements for Foreigners?
In Cape Verde, accommodation providers are obligated to report information about foreign guests to the national immigration authorities. This process includes several key steps to ensure compliance. Firstly, all foreign visitors are required to complete a pre-arrival registration and pay the Airport Security Fee (TSA) through the online EASE platform at least five days before their arrival in Cape Verde. Upon arrival and check-in, accommodation providers must collect specific information from each guest, including their full name, date of birth, nationality, passport number, and the dates of their stay. This collected guest information must then be reported to the local immigration authorities. While the precise timeframe for this reporting isn't explicitly detailed, it is recommended to submit this information promptly, ideally within 24 hours of the guest's arrival, to ensure adherence to national regulations. By following these procedures, accommodation providers contribute to Cape Verde's public safety and security efforts while fulfilling their legal obligations regarding immigration reporting.

Is there any Digital Platform Regulation Compliance?
Currently, Cape Verde does not legally require online platforms to check if short-term rental listings ("Alojamento Local") comply with national regulations. The main responsibility for legal compliance rests with the hosts themselves, who must obtain licenses, meet safety standards, and pay taxes. Platforms are encouraged, but not legally obligated, to help hosts understand and meet these rules, for example, by providing information and tools. Both hosts and platforms are advised to proactively work together to ensure a responsible and legally compliant short-term rental market in Cape Verde.

Is there any Consumer Protection Law that affect STR?
In Cape Verde, guest accommodation contracts are subject to national consumer protection laws, primarily Law No. 98/IV/93, which sets the standard for fair practices between consumers and service providers. While explicit regulations for guest accommodation contracts are not detailed, common practices, such as maintaining guest registers and reporting guest information to authorities, are expected; providers should consult local authorities for specific mandates. Furthermore, property registration is essential, requiring owners to register their properties with the Land Registry and municipal authority, with ownership updates reported by notaries to the municipality. Data protection is also a key consideration under Cape Verdean Data Protection Law, which necessitates that accommodation providers, as data controllers, implement security measures to protect guest personal data, both technically and organizationally, and enforce these obligations with any data processors they might use.

Is there any Law that applies to Non-resident Owners?
In Cape Verde, non-resident property owners have specific regulations to follow regarding property, taxes, and residency. Foreigners can buy property in Cape Verde, and the government offers a "Green Card" for permanent residency to those investing at least €80,000 in lower GDP areas or €120,000 in higher GDP areas; this residency also applies to their families and can include tax breaks. Regarding taxes, non-residents pay an annual Property Tax (IUP) at 3% of the property value, and a 20% withholding tax on rental income, even if not rented out, they may be taxed on assumed income. Selling property also incurs Capital Gains Tax, with 10% tax on 50% of the profit. Beyond taxes, non-resident owners must maintain property insurance, pay utility bills (electricity, water, waste), and cover community charges (condo fees) to avoid potential legal issues like property confiscation for unpaid debts. Staying informed about these responsibilities is crucial for non-resident property owners in Cape Verde to ensure they comply with the law and benefit from available incentives.

Is there any classification of STR in the country?
While Cape Verde's tourism sector includes various forms of accommodation, a formal, publicly available classification system specifically for short-term rentals does not appear to exist. A review of the Visit Cape Verde website (https://www.visitcapeverde.com/) did not reveal any distinct categories for STRs, though regulations for guesthouses and other tourist accommodations may exist. Online travel agencies and booking platforms typically categorize properties in Cape Verde as:

  • Apartments: Fully equipped apartments, condos, and other options
  • Villas: Villas with gardens, picnic areas, and multilingual staff
  • Resorts: Resorts with pools, spas, and kids activities
  • Cabins: Mountain cabins and cliffside cabins
  • Houseboats: Houseboats that can be a unique accommodation

The Ministry of Tourism and Transport oversees tourism accommodations, and properties used for tourism purposes may need to meet specific standards, though detailed classifications for guest houses or STRs are not explicitly outlined in publicly available resources. For more precise information, consulting local tourism authorities or legal documents related to housing and tourism regulations would be necessary.

Are there Special National Event Regulations?
In Cape Verde, there are no specific national regulations exclusively for guest accommodations during special national events, but authorities may introduce temporary measures to manage tourism and ensure public safety, such as heightened security, traffic restrictions, and stricter enforcement of existing laws. Hosts should stay informed by monitoring official announcements, comply with temporary regulations like noise ordinances or occupancy limits, communicate event-related changes to guests, and implement enhanced safety protocols to handle increased visitor numbers. By staying proactive and informed, hosts can ensure compliance and provide a safe, enjoyable experience for guests during special events.

Is there any Penalty for Violating National Rules?
Operating guest accommodations in Cape Verde without adhering to the required laws and regulations can lead to various penalties. While specific penalties can vary depending on the municipality and the severity of the non-compliance, here are some common violations and their likely consequences: i. Operating Without a License: This is one of the most serious violations. Hosts operating without the necessary licenses can face significant fines. The amount of the fine varies but can be substantial to deter illegal operations. Persistent offenders might also face a shutdown of their business. ii. Failure to Meet Safety and Health Regulations: Non-compliance with health and safety standards can result in fines and may require immediate corrective actions. Severe breaches, particularly those that endanger guests, can lead to temporary or permanent closure of the guest accommodations. iii. Non-Compliance with Tax Regulations: Hosts who fail to properly report and pay taxes on income from guest accommodations can face fines, back taxes with interest, and other penalties. Regular audits and checks are conducted to ensure compliance. iv. Failure to Register Guests: Not registering guests with local authorities as required can result in fines. This registration helps in maintaining safety and order, and non-compliance can be seen as obstructing these administrative duties. v. Breach of Consumer Protection Laws: Violations of consumer rights, such as false advertising or failing to provide promised services, can lead to fines and demands for compensation to affected guests. The penalties are designed to ensure compliance and protect the tourism industry's integrity in Cape Verde. Hosts are encouraged to adhere strictly to all regulations to avoid these penalties. For precise details and updates on penalties and regulations, hosts should consult local authorities or legal advisors in Cape Verde.

Are there National Rules or Regulations Governing Short-Term Rentals in Cape Verde (Cabo Verde)?
Are there National Rules or Regulations Governing Short-Term Rentals in the Country?

Cape Verde has established a regulatory framework governing short-term rentals under the Alojamento Local (AL) system. All short-term rental properties must be registered with the local municipal council and comply with health, safety, and zoning laws.
The regulations require hosts to maintain guest records, adhere to consumer protection laws, and comply with local tax obligations. Additionally, the government has been exploring digital platform regulations to hold online rental services accountable for ensuring that properties listed comply with national laws.

Is there any National Tax that affects short-term rental?
Short-term rental income in Cape Verde is subject to national taxation. Hosts must register with the tax authorities and declare rental earnings, which are taxed progressively based on income levels. Additionally, value-added tax (VAT) may apply to certain STR transactions.
In some municipalities, hosts must also collect and remit a local lodging tax, known as the tourist tax, which contributes to the country’s tourism development initiatives. Tax compliance is strictly enforced, and failure to register or declare rental income can result in fines or legal action.
To streamline tax reporting, platforms like Airbnb may provide tax summaries to assist hosts in meeting their financial obligations. Non-resident owners are also subject to withholding tax on rental income, making it essential for them to consult a tax professional for guidance.

permits, license
Are there any Permits, Licenses, or Registrations for Vacation Rental in Cape Verde (Cabo Verde)?
Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?
In Cape Verde, mandatory registration with the local municipal council is required to operate short-term rentals, known as "Alojamento Local," ensuring adherence to national tourism laws. The registration process involves multiple essential steps. Firstly, hosts must select a business structure and register their business name at the Chamber of Commerce, a process costing approximately CVE 20,000 and typically completed within two days. Subsequently, obtaining a Tax Identification Number (NIF) from the DGCI and establishing a business bank account are necessary. Licensing includes securing both a Municipal License (required in Praia) and a hospitality-specific Activity License. Registration with the national Social Security system for the business and any employees is also mandatory. Crucially, accommodations must meet local health, safety, and building standards. Required registration documents include identification, proof of address, property ownership or lease documentation, the NIF certificate, a business plan detailing operations, and Health and Safety Compliance Certificates. A registration fee, varying by property specifics, is applicable. Upon successful application, a registration number is issued and must be displayed. Failure to register can result in penalties, including fines and potential suspension of operations. Cape Verde enforces these measures to regulate the growing STR market, maintain tourism service quality, and promote fair competition among accommodation providers.

Is there any National Association for Vacation Rental owners in Cape Verde (Cabo Verde)?
Is there any National Association for STR owners in the Country?
Currently, there is no specific national association for short-term rental operators in Cape Verde. However, the tourism sector is regulated by the Instituto do Turismo de Cabo Verde, the public institute responsible for overseeing tourism activities in the country. For guidance and information on operating short-term rentals, you may consider contacting them through their official Facebook page:
Additionally, the Cape Verdean Institute for Quality Management and Intellectual Property (IGQPI) has established standards for small tourist accommodations, which may be relevant to short-term rental operators.
While there isn't a dedicated association for short-term rental operators, these organizations can provide valuable resources and guidance to help you navigate the regulatory landscape in Cape Verde.

National Association for STR Owners

Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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