A New Era for Horizontal Property Ownership in Cape Verde

The enactment of Law No. 57/X/2025, of August 5th, constitutes a point of reflection in Cape Verdean legislative history, especially in the area of ​​the legal regime of horizontal property, a legal regime that regulates buildings composed of autonomous fractions. The legal regime of horizontal property is a regime that has been regulated in the Civil Code for over fifty years, and there is no doubt that this legal regime has been in need of updates. Cape Verdean reality throughout this year has undergone numerous changes, mainly in the civil construction, real estate industry, and tourism sectors; therefore, the current socio-economic reality of the country is completely different from what existed fifty years ago.

Rapid urban growth, the increase in vertical construction, the diversification of housing models, and the growing appreciation of the real estate sector demanded a modern, functional, and inclusive legislative response. The new law therefore emerges as an instrument of structural reform, and “as a breath of fresh air for investors” with the aim of ensuring greater legal certainty, administrative efficiency, and normative accessibility for citizens, investors, and professionals in the sector.

More than just a technical update, Law No. 57/X/2025 represents a profound reinterpretation of the principles governing condominium coexistence, the management of common areas, and the autonomy of individual units. By incorporating innovative solutions, such as the possibility of establishing horizontal property ownership before construction, the flexibility of the constitutive title, and the enhancement of accessibility, the Cape Verdean legislator demonstrates sensitivity to the social and urban transformations that are shaping the country.

Fundamentals of Law No. 57/X/2025: Modernization and Legal Security

Law No. 57/X/2025 does not merely make minor changes, but rather redefines the legal and operational foundations that underpin the coexistence and management of condominiums in Cape Verde. Its clear purpose is to modernize the legal system to make it more efficient, accessible, and secure, in view of the challenges of the 21st century.

• Regulatory modernization: the new law abandons the formalistic rigidity of the previous legislation and aims for efficiency, functionality, and accessibility. It fully recognizes the diversity of housing models and the evolution of urban practices by acknowledging that horizontal property ownership includes not only autonomous units in already constructed buildings, but also buildings to be built or under construction. Therefore, it allows for the establishment of horizontal property ownership based on an already approved project – even before construction – a practice that paves the way for dynamism in the real estate sector, facilitating investments and anticipating legal solutions.
• Legal Certainty: One of the pillars of the new law is the strengthening of legal certainty for all those involved. The introduction of mechanisms such as municipal certification of the constitutive title, authentication by private document, and clarification of deliberative quorums contributes to reducing conflicts, avoiding litigation, and ensuring predictability in condominium relations.

From Construction to Constitution: Horizontal Property Before Construction

One of the boldest and most strategic innovations of Law No. 57/X/2025 is the possibility of establishing horizontal property based on an approved project, even before the completion, or even the beginning, of the building’s construction. Therefore, this legal regime has been altered in the sense of replacing the concept of the word “building” with the word “plot,” in which this regime is extended not only to constructed buildings, but also to rural properties or land before construction. This measure breaks the formal paradigm, which required the physical existence of a building in order to legally formalize the division into autonomous units.

Impact on the real estate sector

This change has a direct effect on the dynamism of the real estate market. Investors can launch projects with greater legal security, buyers can acquire units based on legally valid documents, and banks can grant credit with more solid guarantees. Therefore, this is a measure that anticipates legal value to the constructive intention, without compromising the legality or the protection of future condominium owners.

Flexibility and Document Authenticity

This is undoubtedly one of the most significant changes implemented by the new legal regime. In cases where there is a need to modify the constitutive titles of horizontal property, where according to the old legal regime any alteration to the horizontal property regime should have required the execution of a new public deed of modification, but with the new law the legislator understands that legal security can be guaranteed by allowing the owner to request the notarial registration of the modifications to the constitutive title of horizontal property, it being sufficient for the owner to prepare and sign a private document of notarial authentication, containing all the eventual alterations introduced, confirmed by the competent Municipal Council.

Condominium Democracy: From Unanimity to Absolute Majority

The new law introduces a crucial point regarding the modification of the constitutive title. The old legal regime stipulated that the constitutive title could be altered with the agreement of all condominium owners. However, the new legal regime established that unanimity among condominium owners in this decision to modify the constitutive title was literally undemocratic. Therefore, the new law dictates that in such cases, the rule should be that of an absolute majority, or in certain cases, a reinforced majority, in order to avoid unjustified blockages.

Merging of Units: Autonomy with Technical Responsibility

Law No. 57/X/2025 introduces significant changes to the horizontal property regime by allowing the merging of autonomous units without the need for authorization from other condominium owners, provided that certain legal and technical criteria are respected. This measure reinforces the autonomy of the owners, while imposing rigorous technical responsibility, ensuring that the alteration does not compromise the structure, functionality, or rights of other condominium owners.

Inclusion and Accessibility: Works for Reduced Mobility

The new legal framework aims to implement fundamental rights for members of their respective households who are people with reduced or limited mobility. According to Law No. 57/X/2025, any condominium owner, upon prior notification to the building manager and observing the rules provided for in special legislation, may make improvements regarding the installation of access ramps and lifting platforms that allow their use by people in wheelchairs. Furthermore, the law stipulates that condominium owners are obligated to participate in the respective expenses, with refusal only justified through legal action. It also provides for the possibility of any condominium owner, at any time, participating in the benefits of installing the lifting platform by paying for the execution and maintenance expenses of the work.

Economic and Social Impact: Reflections on the Real Estate Market

The entry into force of Law No. 57/X/2025 represents more than a legal reform; it is a strategic boost to the economic and social development of Cape Verde. By modernizing the horizontal property regime, the legislator creates favorable conditions for the growth of the real estate sector, the attraction of investments, and the promotion of more inclusive and sustainable urbanization.

The new law provides greater legal certainty, coupled with simplified procedures, making Cape Verde more attractive from an investment perspective, especially in the tourism sector. The possibility of acquiring units from approved projects, for example, facilitates the pre-sale of properties, a common practice in more developed markets.

Furthermore, the appreciation of horizontal property as a robust legal instrument conveys confidence to banks, insurance companies, and real estate funds, expanding access to credit and asset protection.