Investment property: São Tomé and Príncipe

Updated 6 October 2026

Buying property in São Tomé and Príncipe on your side: shortlist, title checks and a turnkey deal.

São Tomé and Príncipe's property market is small and mostly tourism-driven: houses and small hotels by the ocean on São Tomé island and projects on Príncipe, part of a UNESCO biosphere reserve. The key point for a foreigner: land in the country is mostly state-owned, so a foreigner usually takes a plot on a long-term lease while the house or hotel on it can belong to them. Deals follow the Portuguese legal model, before a notary, with registration in the property register. The dobra is pegged to the euro at 24.5 dobras per euro, about 21.9 dobras per dollar at the European Central Bank rate of 5 October 2026.

What you can buy

• A house or flat, together with the right to the land beneath, which is checked separately.
• A plot on a long-term lease, to build a house or hotel, on the terms of the lease.
• A tourism project, usually through a local company and an investment agreement with the state.

Taxes and incentives

• VAT: 15% since 1 June 2023, applying to works and services including construction.
• Corporate income tax for a tourism company: 25%.
• Investment incentives. The investment code gives approved projects tax and customs incentives, for example on importing equipment and materials for a hotel.

How the purchase works

1. A tax number for the buyer and a local bank account.
2. Checking land rights: who owns or leases it, the lease term and conditions, protected area restrictions.
3. Checking the building in the property register and with the municipality.
4. A contract before a notary and payment through a bank, keeping transfer confirmations.
5. Registration of the building title and transfer of the land lease.

Holiday letting and management

Most buyers count on income from tourists. Letting a house or hotel requires a tourism licence, and income is taxed: for a company at 25% corporate tax, for an individual under personal income tax. Without a local management company the property sits empty, so its contract and cost are factored in before buying.

Does buying give the right to live in the country

Buying alone does not grant residence. A residence permit is issued by the migration and borders service on separate grounds, such as work or an investment project. Owning a home and an operating business on the islands helps the application.

Buyer's documents

• passport, with the data translated into Portuguese if needed;
• a São Tomé and Príncipe tax number;
• proof of the origin of funds for the bank;
• an apostilled power of attorney if a representative handles the deal.

Risks

• Unclear land status or several claimants to a plot.
• Protected nature area restrictions, especially on Príncipe.
• Cash payments without a bank trail: problems on resale and repatriating money.
• Low liquidity: few buyers for such properties, and a sale can take a long time.
• Building without municipal permits.

What we do

We check land and building rights, lease terms and protected area restrictions, and support the notarial contract and registration with locally licensed partners. If the property is for tourism, we register a company, help with investment incentives and open an account.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Business account · Personal account · All country programs

FAQ