The São Tomé and Príncipe real estate market remains relatively niche, with limited official statistics and most transactions taking place outside public databases. Most buyers interested in properties for sale are foreign investors with experience in liquid real estate markets.
The main reasons for interest in the country are the low prices and the growing tourism sector. For instance, oceanfront properties here cost much less than in popular European resort destinations. The low prices are easily explained: the infrastructure is poorly developed and the market is not very liquid. Before purchasing, it is important to consider this and to enlist the support of experienced investment experts.
We’ve prepared a guide to help you understand the specifics of buying real estate in São Tomé and Príncipe, including information on restrictions for foreigners, tax requirements, and the transaction process.
The Sao Tome and Principe real estate market in 2026
In 2026, the real estate market in São Tomé and Príncipe is small and in the early stages of development. The key regions with the most developed infrastructure for purchasing are:
- São Tomé (the capital), the business center with the largest supply;
- The northern and coastal regions of São Tomé Island, which are closer to the airport and tourist areas;
- Príncipe Island — limited supply, but a more premium segment.
The country’s economy is primarily focused on agriculture. However, tourism has recently increased — according to UN estimates, it accounts for approximately 11% of São Tomé and Príncipe’s GDP. This is a key driver of the real estate market, as demand is driven by tourism projects rather than local buyers. As tourism develops, prices for hotels, hotel rooms, and land for construction will rise.
Can foreigners buy real estate in São Tomé and Príncipe?
Foreigners can purchase almost any type of real estate in São Tomé and Príncipe. This includes buildings such as houses, apartments, summer cottages, and commercial premises. There are no restrictions on the number of properties or their size.
The situation with land ownership is different, however. Most land (90%) is state-owned and cannot be purchased directly. Instead, long-term leases, or concessions, are used. The state transfers the land to an investor for a specified period for the purpose of constructing or restoring a hotel or residential property, for example. While the land can be used and profits can be made from it, legally it remains state property.
The real estate market in São Tomé and Príncipe is less developed than those in other popular tourist destinations, such as those in Europe and the Caribbean. However, the government is working to improve the country’s infrastructure and attract additional EU funding, including EUR 20 million for the period from 2021 to 2027, as well as foreign investment. As part of this initiative, São Tomé and Príncipe created a Citizenship by Investment program in which citizens of any country can participate.
Obtain citizenship of São Tomé and Príncipe
- Citizenship for spouses, children, and parents
- Possibility of dual citizenship
- Minimum stay requirements in the country
- The most accessible citizenship program in the world
Leave an application and get a consultation specialist
What types of properties are available for purchase in São Tomé and Príncipe?
Despite the small market, there are plenty of options for finding the perfect property. Currently available for purchase are:
- Oceanfront houses or villas. These properties are most often purchased for short-term rentals to tourists or as second homes. The main options are concentrated on the island of Príncipe, in the areas of Lagoa Azul Beach, Praia das Conchas Beach, and Tamarindos Beach.
- Land for construction. While full ownership of land cannot be formalized, investors acquire plots under concession agreements. This format is chosen by those planning to build a resort or hotel. The largest number of available plots is in the less developed regions of São Tomé and Príncipe, such as the south and east.
- Apartments. This option is suitable for those planning to live in the country. Most properties are in the capital city of São Tomé. This segment is small and less attractive for investment.
- Commercial real estate. This type of property is ideal for entrepreneurs looking to start a business in São Tomé and Príncipe. You can purchase a hotel, office, store, or warehouse, for example.
Investing in real estate in São Tomé and Príncipe does not grant the right to obtain a residence permit or citizenship. Therefore, foreigners purchase properties for personal residence or business purposes. If your goal is to obtain a second passport, iWorld experts recommend considering the São Tomé and Príncipe citizenship by investment program.
Real estate prices in São Tomé and Príncipe
The São Tomé and Príncipe real estate market is small and understudied by international agencies. However, according to the Builds and Buys platform, it has experienced fluctuating growth rates over the past 20 years.
| Period | Average annual growth rate, % | Market trends |
|---|---|---|
| 2010–2015 | 2–3 | Limited market activity, with transactions mainly driven by local buyers |
| 2016–2020 | 4–6 | Growth in tourism and increasing interest from foreign investors |
| 2020–2022 | 1–3 | Slower market growth due to the COVID-19 pandemic |
| 2023–2026 | 5–7 | Market recovery supported by growing foreign investment in the tourism sector |
The cost of real estate in São Tomé and Príncipe depends on its proximity to the ocean and tourist infrastructure:
| Region | Average price per m², $ | Notes |
|---|---|---|
| São Tomé (Capital) | 1,200–2,000 | The country’s main business and administrative center |
| Northern and coastal Areas | 1,500– 2,500 | Close to the airport and home to new resort developments |
| Principe island | 2,000–3,500 | Luxury resorts with limited property supply |
| Southern São Tomé | 800–1,500 | Less developed infrastructure |
| Inland plantation areas | 600–1,200 | Agricultural land and boutique tourism developments |
Is investing in properties in Sao Tome and Principe worth it?
Investors are just beginning to show interest in the country’s real estate. This is due to:
- Low prices;
- The developing infrastructure of the island nation;
- Growing tourist interest in the country.
Currently, purchasing real estate in São Tomé and Príncipe does not lead to a residence permit or citizenship. An economic passport can only be obtained through a government program by making a non-refundable contribution to the National Transformation Fund.
Those investing in São Tomé and Príncipe real estate are:
- Looking for a “second home” and planning to move to the country;
- Wanting to develop the tourism sector by building guesthouses, eco-hotels, or resorts;
- Planning long-term investments with a return within a few years;
- Wanting to enter the low-cost real estate market niche.
However, those planning to make a quick profit within 6 months to a year don’t consider the São Tomé and Príncipe real estate market. Investments are designed for the long term and offer a higher return.
How to buy real estate in São Tomé and Príncipe?
The process of purchasing real estate in São Tomé and Príncipe takes 3 to 6 months, but it can take up to a year if the property has problematic documentation or requires additional permits. Key steps:
- Property search
Finding a property independently is difficult because most property listings are not in catalogs. You can contact a real estate agency located in São Tomé and Príncipe or in another country that specializes in the local market. A realtor will find a property for sale that meets all your requirements. Note: Some listings do not have a complete ownership history, so it is advisable to consult a lawyer at this stage.
- Legal due diligence
Before the transaction, it is important to consult with lawyers who will verify the property’s ownership, debts, and other encumbrances. Due to the opaque nature of the market, the risks are higher here than in Europe without professional support.
- Obtaining a purchase permit
The permit is issued by the Investment Promotion Agency. With the application, the buyer must provide proof of financial solvency: a statement of the source of funds, bank statements, and an international bank reference letter. The permit is typically issued within 30–60 days. - Preparing documents
You will need to provide identification documents, including a passport valid for at least six months, a local tax identification number, and proof of residence in another country (e.g., utility bills). To complete the transaction, you will also need a title search report, a property tax exemption certificate, and a property appraisal.
- Signing a debt agreement (Contrato-Promessa)
A local notary will draw up a preliminary purchase and sale agreement. This agreement specifies the amount of the down payment (usually 10-30% of the property price) and the terms and conditions for completing the transaction. The agreement is then registered with the land registry.
- Signing of the final contract (Escritura Pública)
A notary must oversee the process and register the contract during the transaction. After signing, the buyer transfers the remaining funds to the seller.
- Registration of ownership
The buyer must contact the General Directorate of Registration and Notaries (Direcção Geral dos Registos e do Notariado — DGRN) to register ownership of the property. To do so, they must submit the purchase and sale agreement and a completed application. The process typically takes 20 days, but paying a higher state fee can reduce this time to 3 or 1 day.
Get a free property selection, a full calculation of the entry cost, and a list of other expenses from an iWorld specialist
Taxes and other costs when purchasing real estate in São Tomé and Príncipe
General additional costs when purchasing real estate in São Tomé and Príncipe can amount to approximately 15–20% of the property’s purchase price and include:
| Expense | Rate |
|---|---|
| Property transfer tax | 8 % |
| Stamp duty | 0,8 % |
| Notary fees | 0,5–1 % |
| Registration fee | 0,3–0,8 % |
| Legal fees | 3–5 % |
| Real estate agent’s commission (if applicable) | 5–10 % |
For example, let’s say you bought a villa for USD 100,000. Additional costs would then range from USD 15,000 to USD 25,000.
Who is the real estate market in São Tomé and Príncipe suitable for?
The real estate market in São Tomé and Príncipe is just beginning to develop, and supply is limited. It is suitable for those who:
- Plan to develop a tourism business;
- Are looking for affordable housing in an exotic destination;
- Plan to move to São Tomé and Príncipe;
- Want to protect their capital.
However, buying real estate in São Tomé and Príncipe may not be profitable. Do not consider this option if you:
- Are looking for highly liquid real estate: the market and demand are relatively low, and there are more sellers than buyers;
- Plan to resell the property quickly: there are more sellers than buyers;
- Want to obtain legal residency through real estate: the purchase does not lead to residency or citizenship.
Other countries today offer highly liquid assets and second passports through real estate purchases—Turkey, the Caribbean, Vanuatu, and others. provide consultations on all programs, select the one that best suits your needs, and support you throughout the citizenship process.
