From the Camara Municipal SAL website on IUP

I.U.P. Basics

I.U.P. is an annual property tax, payable by all owners of property and land in Cape Verde, irrespective of whether they are a Cape Verdean national or a foreign citizen, irrespective of whether they are resident in Cape Verde or domiciled overseas, irrespective of whether that property is a residential property (apartment, townhouse, villa), a commercial property (shop, office or warehouse) or a piece of land.  There are no exceptions and no exclusions. Importantly where a property has more than one owner, each owner is individually liable for the full I.U.P tax liability.

I.U.P. CALCULUS (2020)

The current method of I.UP. calculation is determined by a simple formula, where PV = Patrimonial Value or the total purchase price you paid for your property:-

• 2020: the current I.U.P calculation formula is ((¼ PV) x 85%) x 1.5% or, put more simply, 0.31875% of the purchase price (PV) of your property.
• Example: In 2020 the I.U.P. tax due for a property purchased for Euro 100,000 would be EUR 318.75 per year.
• NB. 50% of the 2020 annual IUP tax is due in April, and 50% in September. Payments made late attract penalties and interest. The majority of tax payers pay 100% every April to avoid charges/administration

I.U.P. CALCULUS (HISTORIC)

The method of I.U.P. calculation has changed several times over the last decade:-

• 2015, 2016, 2017, 2018 & 2019 : the I.U.P calculation formula was the same as for 2020 at ((¼ PV) x 85%) x 1.5% or, more simply, 0.31875% of the purchase price (PV) of your property.
• 2012-2014: the I.U.P calculation created higher taxes by using the formula ((¼ PV) x 85%) x 3% or, more simply, 0.6375% of the purchase price (PV) of your property.
• 2011 and earlier: the I.U.P calculation was set using the formula ((¼ PV) x 5%) x 3% or simply 0.15% of the purchase price (PV) of your property.

I.U.P. PENALTIES & INTEREST

Late, partial or non-payment of your I.U.P. taxes results in the automatic imposition of penalties and interest on the balance of your unpaid I.U.P. tax liability: –

• Interest is charged at the prevailing Central Bank of Cape Verde statutory rate and accrues monthly.
• Penalties were charged at 4% every April and September in any given financial year. New penalties ceased to be applied from the 2015 tax year.

NB. The effect of these additional charges, because they are cumulative and will substantially increase overall I.U.P. tax liabilities

Source: Municipality of Sal website