The government aims to make Angola a more attractive country for foreign private investment and has introduced regulations with the aim of creating a real estate sector. Recently, there has been a considerable amount of construction of both housing and commercial buildings in Angola. However, in Angola the radical title of all land is vested in the state which rarely grants full proprietorship of land; rather, it assigns surface rights which grant powers to construct and maintain buildings or establish plantations. The state may only grant surface rights to Angolan citizens or companies constituted in Angola though foreign parties may hold shares in such companies. In practice, contracts relating to surface rights are concession contracts which cannot last for more than 60 years. However, there are no prohibitions on the renewal of such contracts.
These rules are set out in the Land Law. The New Urban Lease Law governs certain leases. Key provisions of this Law are as follows:
the rent must be set in Angolan currency (Kwanza)
there is flexibility on execution formalities (but also sanctions for breaches of the relevant provisions
payment of rent may not be payable more than three months in advance, and
rents may be stipulated to be annually reviewed in line with an index published by the government
The combination of new real estate tax regulations and the New Urban Lease Law now give investors a clear sign that Angola is becoming more transparent and keen to develop a dynamic real estate sector.
