We report on the magnetic and structural properties of Co-doped ZnO nanoparticles prepared by the vaporization-condensation method in a solar reactor. X-ray diffraction data and high-resolution electron microscopy (HREM) confirm the total absence of metallic Co clusters or any other phase different from würtzite-type ZnO.Electron energy loss spectroscopy analyses performed on several particles indicate that the oxidation state of Co is +2 and yield an average Co concentration of 4.5at.%, in good agreement with the nominal composition. Transmission electron microscopy micrographs show that shape and size of the particles are strongly dependent on the preparation conditions, as well as the microstructure as evidenced by HREM. Ferromagnetism is only found in samples prepared in vacuum revealing a close correlation between microstructure and magnetic properties.