New Construction Values ​​and Evaluation Criteria within the Scope of the CIPI

Ordinance No. 8/2026, dated February 9, has been published. It establishes the average construction cost per square meter for buildings constructed during the 2025–2030 period, as well as the calculation formula applicable to structures built prior to 2025, along with the corresponding correction factors.

This legal instrument was approved pursuant to Article 16 of the Real Estate Property Tax Code (CIPI)—enacted by Law No. 55/X/2025—and repeals Ordinance No. 45/2025. It now serves as the new regulatory framework regarding average construction costs and enters into force on the day following its publication.

Under the terms of the CIPI, the average construction cost must be set every five years by an ordinance issued by the government official responsible for the Finance portfolio, upon a proposal from the National Association of Cape Verdean Municipalities.

The ordinance now published gives effect to this legal provision for the 2025–2030 period, establishing the average values ​​set out in Annex I, according to the intended use of the properties.

According to the technical notes accompanying the legislation, the established average values ​​are based on 2025 average market prices for conventional construction.

The variations reflect factors such as logistics costs associated with the different islands, tourism pressure—with a particularly significant impact on the islands of Sal and Boa Vista—and the scale of the construction projects. These elements are now incorporated into the framework used to determine the taxable value of urban properties.

Regarding buildings constructed before 2025, the Ordinance approves a basic calculation formula that serves as a universal method for determining values ​​for earlier periods.

The formula incorporates the average construction cost established for 2025, a defined inflation rate (2.3%), and the number of years elapsed between the reference year and 2025. This mechanism allows for the determination of the average construction cost applicable to buildings constructed in previous years, ensuring methodological uniformity.

For buildings constructed before 1975, the corresponding correction factor—as set out in Annex II of the Ordinance—also applies. This factor is intended to adjust the assumed construction cost, taking into account the specific characteristics of buildings from that period.

In practical terms, the average construction value is one of the components used to determine the taxable asset value of real estate, which serves as the basis for calculating property tax. Consequently, any changes to these average values ​​or to the calculation methodology may affect the amount of tax due, as well as the valuation of properties for accounting or management purposes.

The publication of this legal instrument thus represents the implementation of the evaluation model provided for in the CIPI, reinforcing the standardization of criteria and establishing a regulatory framework applicable to the 2025–2030 period.