Operação I.U.P.
Operação I.U.P.
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Câmara Municipal do Sal

Operation I.U.P.

 

Thank you for your attention...

This website has been created by the Câmara Municipal do Sal, the local Cape Verde government authority for administering Sal Island, in order to clearly explain "Imposto Único sobre o Património" or I.U.P., an annual tax, which must be paid by all owners of property or land in Cape Verde.

The Câmara Municipal do Sal is the sole entity responsible for collecting I.U.P. due on property and land in Sal Island and this tax is the primary source of our annual income. Any failure to pay I.U.P. therefore constrains the local economy as it limits the provision of public services and restricts the development of improvements and additions to the existing Island infrastructure.  

The Câmara Municipal requires outstanding debtors to bring their I.U.P. tax payments up to date and to that end created a time limited programme, "Operation I.U.P.", which commenced on 1 January 2017 and offered incentives to encourage debtors to make prompt voluntary payment before having to implement time consuming and costly legal recovery proceedings.

Over 1,000 debtors paid during this voluntary phase, which ended on 30 June 2019 and were able to benefit from a full exemption from the imposition of late payment penalties and statutory interest.

Accordingly the Câmara Municipal has now begun issuing out formal 90 day demands to those debtors who still have outstanding I.U.P. taxes. In the event that debtors ignore those formal demands, and fail to pay their I.U.P. taxes in full within the 90 day period, the Câmara Municipal will regrettably, but automatically, initiate legal proceedings against them in accordance with their statutory obligations.

The consequences of failing to pay all outstanding I.U.P. tax debts, once legal proceedings have been initiated, can be both;-

  1. an increase of up to 60% in the quantum of outstanding debt to the Câmara Municipal through the addition of further statutory penalties and charges and,

  2. in the event of continued non-payment the seizure by the Câmara Municipal of a debtors bank accounts and/or chattels and/or property assets in order that they may be liquidated or sold to settle all I.U.P. tax debts in full.

We therefore strongly urge debtors to not ignore our formal demands, to follow the instructions contained therein and make payment in the required manner in order to avoid a most unfortunate conclusion.

Câmara Municipal do Sal, 1 Julho 2019

 

I.U.P. Contacts

➤ LOCATIONS

Câmara Municipal, Espargos

 

Câmara Municipal, Santa Maria

 

✉ email

The Câmara Municipal do Sal has created a universal point of contact (see below) for all queries and assistance under the "Operation I.U.P." programme:-

help@cmsal-iup.com

The Câmara Municipal do Sal respectfully requests that in the first instance you communicate with us by email in order that we can respond to you effectively and where possible communicate with you in your own language.


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 (2019)

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:-

  • 2019: 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 2019 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 2019 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


INTERNATIONAL BANK PAYMent

To pay your outstanding IUP taxes by making an interbank international payment please send Euros to our account details below.

  • Account Name: Câmara Municipal do Sal

  • Bank: BCA-Banco Comercial do Atlântico

  • Bank Address: Avenida A. Cabral Praia, Santiago Island, Cape Verde

  • Account No.: 6124096.10001

  • NIB: 000300000 6124096 101 76

  • IBAN: CV64 0003000006124096 101 76

  • SWIFT/BIC: BCATCVCV


International Bank Transfer Instructions

  1. Convert your liability into Euros by dividing the CVE (Escudos) IUP tax debt by 110.265

  2. Add Euro 8.50 to your IUP tax debt; this will cover the additional cost BCA charges the Câmara for processing international payments.

  3. Also ensure you instruct your bank to pay all bank charges; or the Câmara receives a shortfall.

  4. Make only one payment per property

  5. Use the correct payment reference format; “IUP-YYY ZZZ” where YYY is your first name and ZZZ is your second name e.g. “IUP-Richard King” or “IUP-Ricardo Fereira”

  6. Send a copy of your payment instruction/ receipt to help@cmsal-iup.com


I.U.P. CALCULUS (HISTORIC)

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

  • 2015, 2016, 2017 & 2018: the I.U.P calculation formula was the same as for 2019 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.


LOCAL BANK PAYMENT

To easily pay your outstanding IUP taxes from your own Cape Verdean bank account please send Escudos to either:-

  • Banco Comercial do Atlântico (BCA)

    Account No.: 6124096.10001

  • Banco Caboverdiano de Negócios (BCN)

    Account No.: 5576866.10001

  • Banco Interatlântico (BIA)

    Account No.: 2410354 10001

  • Banco Internacional de Cabo Verde (BICV)

    Account No.:01611269307132

  • Caixa Economica de Cabo Verde (CECV)

    Account No.: 5576866 10001


Local Bank Transfer Instructions

  1. Make only one payment per property

  2. Use the correct payment reference format; “IUP-YYY ZZZ” where YYY is your first name and ZZZ is your second name e.g. “IUP-Richard King” or “IUP-Ricardo Fereira”

  3. Send a copy of your payment instruction/ receipt to help@cmsal-iup.com


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 outstanding I.U.P. tax liability:-

  • Interest is charged at 12% per annum, accruing at rate of 1% per month, on the full outstanding balance of your I.U.P. account.

  • Penalties have historically been charged at 4% on the full outstanding balance of your I.U.P. account in May and again in September, of any given financial year.

  • NB. The effect of these additional charges, because they are cumulative substantially increases overall I.U.P. tax liabilities up to a maximum of 60%.


PAYMENT IN PERSON

The Câmara Municipal do Sal has two offices where your annual IUP may be easily paid in person using either, and our accepted payment methods are a) cash (both escudos and Euros are accepted), b) Vinte4 or c) Visa


Espargos Office

Opening Hours: Monday/Friday - 8am/3pm

Location: The Câmara office is located immediately adjacent to the main roundabout at the entrance to Espargos town. Take a queue ticket!


Santa Maria Office

Opening Hours: Monday/Friday - 8am/3pm

Location: The Câmara office is located on the ground floor (external left side) of the Municipal Market in downtown Santa Maria.


Payment in Person Instructions

  1. Bring your passport and,

  2. A copy of your enclosed IUP tax statement and,

  3. Send a copy of your payment instruction/receipt to help@cmsal-iup.com




NB. The failure to follow these instructions can make it difficult for the treasury to correctly identify and allocate your payment in a timely manner or the office to identify your property NIP number (property identification code).


Operation I.U.P. Summary




VOLUNTARY INCENTIVISED PHASE (EXPIRED)

The Câmara Municipal do Sal formally approved the following timetable and related benefits for the voluntary Phase of the "Operation I.U.P." programme:- 

  • 1/01/17 to 31/12/17 - 100% amnesty from all accrued penalties and interest in return for complete payment of all outstanding I.U.P. tax debts

  • 1/01/18 to 31/12/18 - 50% reduction on all accrued penalties and interest in return for complete payment of all outstanding I.U.P. tax debts

  • 1/01/19 to 31/05/19 - 25% reduction on all accrued penalties and interest in return for complete payment of all outstanding I.U.P. tax debts

NB. To qualify for the amnesty or reduction any debtor had to settle in full for all indebted properties or land within the specified time-frame.

FORMAL PHASE - ACTIVE

The Câmara Municipal do Sal commenced the issuance of formal 90 day demands on 1st July 2019

In accordance with Cape Verdean law those formal demands, issued by the Secretary of the Câmara, will be delivered directly to the debtor property in Sal.

The Câmara Municipal will also endeavour to contact the debtor by email, telephone or by the issuance of formal demands to their international residential address using registered post.

Debtors are urged to not ignore these formal demands and instead follow the clear instructions included within that correspondence for making the required payment within the allotted time. Appeals for payment plans as a result of financial hardship provided that documented evidence is provided and authenticated.

LEGAL PHASE - AUTOMATIC

The Câmara Municipal do Sal will automatically instigate legal proceedings against debtors upon expiry of the 90 day formal demand period in the event that:-

  1. the outstanding debt has not been paid in full or

  2. a formal payment plan has not been agreed or

  3. there has been no formal court challenge to the debt

Using powers conferred by recent Cape Verdean statutory legislation the Câmara Municipal is now able to fast-track the seizure of debtor bank accounts, chattels and property assets, in order that these can be liquidated or sold to settle all outstanding debts owed to the Câmara Municipal in full and including additional penalties and charges up to a maximum of 60% of the underlying debt

Debtors are therefore urged to avoid this situation.





I.U.P. Downloads

In order to provide property owners with greater clarity on their I.U.P. obligations the Câmara Municipal do Sal provides the following guides in downloadable pdf format

I.U.P. Help & FAQ'S

A general overview of I.U.P. tax, I.U.P. calculus, Payment, Penalties/Interest, Sanctions for Non Payment as well answers to Frequently Asked Questions.

I.U.P. PAYMENT Details

Comprehensive details on how to make I.U.P. payment by international bank transfer, local Cape Verde bank transfer or in person at the Municipal Offices on Sal Island.

OPERATION I.U.P. DETAILS

Summary details of the "Operation I.U.P." programme, how to take advantage of the benefits by making payment as well as the consequences of failing to clear I.U.P. debts.

 
 

You may always request a formal I.U.P. statements of account which details, by year, the current outstanding I.U.P. due for your property. These statements are available as pdf files by emailing help@cmsal-iup.com or alternatively a printed copy may be collected by visiting the Câmara Municipal do Sal offices in either Santa Maria or Espargos; open Monday to Friday 8am to 3pm.


 

Need help with your I.U.P. ?

The Câmara Municipal do Sal aims to provide quick and effective assistance to all I.U.P. tax enquiries. Please use the following form to send us your I.U.P. query or request for assistance and in order that we can assist you effectively we simply ask you to try to be as detailed as possible.

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