Move to Cape Verde and set up a business there - tourism sector

zero reply???

I did a quick Google search and found information there. Also perhaps read other posts here on the forum too.

Hello Nicolas,

You asked many questions in various areas, and each of which requires a response from someone who knows these step-by-step details. I would be one such person, but I cannot always respond immediately. I'm not sure who else is on the forum with such knowledge about CV. In any event, your questions lack specifics (there are a lot of dependencies!) and the issues are too complex/lengthy to give a highly detailed response.

What are the steps to be able to live on the green line? What do yo mean by the "green line"? Cape Verde's official language is Portuguese and you are using an expression in English. What does it mean? Are you referring to Cabo Verde? What are the steps to live here? Simple. You need to enter with a short-term tourism visa and then you can apply for a residency visa once you are here.

To take up residence there? To obtain a residency visa, you must a reason to be staying here for the long term. Such reasons include: obtaining a job; going to school; investing/starting a business; retirement; marriage (while you await your citizenship certificate). Most foreigners wh come to reside here obtain their residency visa on the basis of satring a business.

What are the steps for starting a business? You simply need to officially register the business with the government. The registration process costs €100 and takes 48 hours (24 of which involves waiting to get the business name approved). There is an additional cost that you will need to pay to a private accountant whom you must hire to provide your business with a declaration of fiscal responsibility. Local accountants typically charge about €150 for this declaration.

There is too much to write to explain what all the steps are in the registration process. But they are very easy and can be explained to you during the registration process when you go to the Casa do Cidadão to complete the registration. It is not something that you need to know in advance unless you are planning to start a corporation with multiple shareholders (or one that is owned by a foreign entity). Starting this type of business is much more complicated and would require you to hire a local lawyer. But if you are starting a simple business that is owned by only you, or by you and other known persons, then that is very easy to do by yourself and you won't need to hire any lawyers or consultants.

To get the operating licenses for the business is more complicated and it all depends on the kind of business you want to start. But the licenses are given by the appropriate government department, or in some cases by the Camara Municipal, or in other cases by the Chamber of Commerce, depending on the type of business!

Where can I find land for sale on the beach ( or a concession? ) Land on the beach is controlled by the IMP (the maritime and port authority). You will need to visit them to obtain information about where land on the beach is available and what it costs for a concession. Land on the beach is typically never sold to businesses. It is leased for a limited period (could be decades).

Are there advantages in terms of taxes and import and customs duties for new businesses? It depends on how large your investment is. If it is more than €500.000, then there may be fiscal advantages which you can obtain through the Utilidade Turistica. But in any event, the total amount of benefit possible is equal to half of your investment. If you are investing less than half million euro, then you would need to think very carefully about applying for such benefits because the process will take at least 6 months and you will be losing valuable time that you could be operating your business.

Is there a clear document on import and customs duties? Yes, but it is 400 pages long, it is a technical document written in Portuguese, and it is not distributed because most people don't really understand what it says or which categories apply to their imports. You will need to ask a despachante (official import agent) or a consultant to help you with this.

Nicolas, you have provided insufficient details for specific answers. If you do not speak Portuguese, it will be extremely challenging to get anything accomplished because the official processes are entirely in Portuguese. So, you should consider working with someone who knows the processes and speaks the language.

If you need specific information or you need help, send me a private message.

Regards,

Angelo

nicolasbedhainaut wrote:

Good morning to you all,

I wish you could walk me through my project step by step.

The idea would be to create a tourist business on Boa Vista Island.

I have already stayed there 3 times; the first time in pure tourism, the following already with the idea of a project.

FIRST STEP

What are the steps to be able to live on the green line?
To take up residence there?

SECOND STAGE

What are the steps for starting a business?
Where can I find land for sale on the beach ( or a concession? )
Are there advantages in terms of taxes and import and customs duties for new businesses?
Is there a clear document on import and customs duties?

All your advice is welcome!

Very interesting topic and great insights, thank you Angelo.
I was wondering if the business which you start to obtain residency has to be "locally active" (e.g. like a store, tourist tours, plumbing service) or will businesses such as selling online courses, worldwide consulting services or even a holding company work as well? Or would it also work to invest in another local business to get residency? 

Obrigado
Julian

Hi Julian,

No; the business does not have to be active. You simply need to have the business officially registered. That is all. The authorities understand that it does not take a month to put a business into practice and that you will need to be physically here in Cape Verde, possibly over the course of many months, to operationalize your business. And you cannot legally be here for long periods unless you are a resident.

Thus, there is no requirement that your business be operational/active to apply for your residency visa or residency card,

In addition, you don't have to have the residency visa or residency card issued in order to remain legally in CV. Once you APPLY for residency and pay the €50 fee, you are given a receipt. This receipt is your authorization to reside legally in Cape Verde even while your application for residency is being processed. Once the residency visa is stamped into your passport or you receive a residency card, you can throw away the receipt.

Remember that the residency visa or card have an expiration date and you will have to renew it in future. The renewal process is much the same as the original application process, but requires fewer documents. After you have been a resident for 5 years, you are given permanent residency which does not expire anymore.

Regards,

Angelo

julianangel wrote:

Very interesting topic and great insights, thank you Angelo.
I was wondering if the business which you start to obtain residency has to be "locally active" (e.g. like a store, tourist tours, plumbing service) or will businesses such as selling online courses, worldwide consulting services or even a holding company work as well? Or would it also work to invest in another local business to get residency? 

Obrigado
Julian

Obrigado, Angelo!

Yes, you have written about residency application somewhere else, but thanks for bringing it on again. Do you know if there have been any cases in which Cabo Verde denied residency, despite someone having a job or business? Do you know if Cabo Verde expects your business to generate a certain income within a certain period?

Thanks, Julian

Hello Anjelo,
   Thanks for the giving necessary details. My questions are
1) where do I get the residency stamp , is it at the point of entry (at the airport)
2) do I have to have a physical store before I'm able to register my business ? I'm a fashion designer.
3) what's the average amount of getting a physical store in Santa Maria,Cabo verde. Thanks