Private ownership of land itself is recognized but there is no legal means of contracting to transfer smaller land rights (such as the right of customary dominium utile, right of civil dominium utile, surface right) and right to temporary occupation, is common.
Last modified 1 Aug 2019
The Angolan Constitution recognizes private property, however, it also sets forth that the ownership of land belongs to the state. The acquisition and use of land is mainly regulated by the Land Law (Law 9/04, of 9 November 2004), the Land Law Regulations (Decree 58/07, of 13 July 2007) and the Civil Code. Foreign investors due to restrictions to ownership tend to apply for the granting of one of the above-mentioned smaller land rights, the surface right is the most common due to the fact that it offers more security, since it can be granted for a period of 60 years and may be renewed.
Last modified 1 Aug 2019
The state enjoys preferential rights and has first preference in the case of sale, accord and satisfaction or tenure of land granted.
As mentioned above, property transactions are governed essentially by the Civil Code provisions, along with the Land Law and the Land Law Regulations. There are ancillary statutes that also must be considered with regard to this matter, including the Private Investment Law (Law10/18, of 26 June 2018).
The transfer of title must be executed by means of a public deed.
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There is a Land Registry Office and all transfers of title are subject to registration. However, with regard to earliest transfers the existing records are not completely reliable. There has been an effort from public authorities to update the existing records and thus to assure and reinstate confidence to acquirers, both foreign and national. Title insurance does not exist in Angola.
Are transfers of title recorded in this country?
Yes.
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The procedure for the granting of surface rights (the most common title) is organized by the Instituto Geográfico e Cadastral de Angola (Geographical Institute of Angola). The procedure for the acquisition of such rights is as follows:
Phase 1: Filling the application for the granting of surface rights. The application must specify (a) the location of the plot of land, (b) the use that will be made of the plot of land, (c) the price and (d) information on any other surface right granted.
Phase 2: Gathering information and reports on suitability of the plot of land, any third-party rights, term and phases of the use of land in accordance with the type and volume of construction, additional clauses for the agreement adjusted to the purpose of the concession.
Phase 3: Interim Decision. The procedure may be dismissed or if there is no reason for dismissal, the plot of land will be marked out.
Phase 4: Decision. The concession decision will set forth the conditions to which the right will be subject and may determine a deadline during which the concession will be provisional. This is also the time to decide whether a public auction must take place. If not public auction takes place the applicant must confirm within ten days the acceptance of the concession under the terms set forth by the concessionaire. Specific rules apply in case a public auction takes place.
Phase 5: Final marking out of the plot of land. Topographic operations that allow the full identification of the plot of land and its location by marking it out with marks made of cement or stone.
Phase 6: Public deed of concession. Granting of the public deed. Issuance of the concession decision followed by publication in the Official Gazette.
Phase 7: Payment of the price. Depending on the pre-existence of a public action, payment shall be done as follows: if there was a public action payment shall occur under the terms of the procedure of such public action. In case public action was waived by the authorities, payment slips must be obtained 5 days from the gazetting of the concession decision.
The concessionaire must register the concession deed with the Real Estate Registry being all costs bear by the applicant now owner of a surface right.
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Yes. Buyers tend to carry out a due diligence process in order to ascertain the current state of the land or property, including to obtain information to confirm title.
Last modified 1 Aug 2019
Yes. Depending on the transaction and the legal regime of marriage, consent from a spouse may be required.
A public deed must be executed, before a notary. Full identification of the parties, the object, price and other conditions must be included.
What is a typical contract or SPA in this country like?
If the transaction does not involve the state or any other public authority, Parties typically execute first a promissory agreement and only after the deed is signed.
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No. Parties may agree on warranties to be provided by seller however this varies from case to case.
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In the event of misrepresentation by the seller, the buyer can, depending on the circumstances, terminate the agreement or file a legal action for the annulment of the agreement, and claim reimbursement of the amounts paid with an indemnification.
Depending on the type of project it may be necessary to obtain an environmental impact assessment study. This document evaluates the environmental feasibility of the project and also the methods for minimizing or neutralizing their effects.
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The zoning and planning laws and regulations for each local region are available to the public and copies of the regulations and local decisions can be obtained. Additionally, all documents related to a parcel of real estate must be analysed during the due-diligence process.
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Both the Private Investment Law and the Public-Private Partnerships Law aim for the execution of these types of agreements and from these regime benefits (namely tax and customs benefits) are available and may be granted.
The purchase of a real estate is subject to transfer tax (SISA) at a rate of 2% (levied on the acquisition amount when equal to or higher than the value registered in the Land Registry Office). Additionally, it is also subject to stamp duty at a rate of 0.3% (levied on the acquisition amount). Stamp duty is also due for the execution of a sale and purchase deed at a fixed amount of AOA 2,000.
Costs are not typically shared and are normally entirely paid by buyer.
Last modified 1 Aug 2019
Typically, share deals do not trigger the payment of SISA. However, in the event the purchaser ends up holding more that 50 percent of a company holding real estate and does not prove that the main purpose of the operation is not the acquisition of the immovable properties then SISA is due.
There is normally no sharing of costs and these are normally paid by the buyer.
