Buyer's Guide
Buying a property in St.Lucia where there is
a tax haven with no VAT, no capital gains tax, no inheritance tax and
no estate tax makes a great deal of sense. St.Lucia is one of the worlds
top destinations for weddings and honeymoons making a holiday rental
property potentially lucrative. St.Lucia has really embraced the
worldwide taste for health spas with the first St.Lucia Health &
Wellness Retreat, supported by the government and private businesses,
being established and opening soon on the island. Being one of the most
accessible islands in the region with the lowest crime rate St.Lucias
affordable properties offer an ideal opportunity for investment.
Comparable in many ways to neighbouring Barbados but with house prices
ranging from 40-60% lower this beautiful island should not be overlooked
as an investment opportunity.
With a total land area of just
620 sq miles St.Lucia, often called "The Helen of the West Indies"
because of its natural beauty, sits in the ocean like a shimmering
jewel. Pristine white sandy beaches, tropical forest populated by
rainbow-plumed birds and acres of orchards filled with sweet smelling
tropical fruits such as mango, papaya and banana are crowned by the
islands twin peaks the Gros & Petit Pitons.
How to buy St Lucia property
There
are certain rules and regulations you must comply with as a non
domicile of St Lucia in order to purchase a St Lucia property. For
instance, you will need to apply for an Alien Landholding Licence.
Generally the cost of purchasing a property on St Lucia will come out at
between 6-8% on top of the purchase price. This will cover stamp duty,
the Alien Landholding Licence, Treasury receipt, legal costs and
registration fees. If you are taking out a mortgage, lenders tend to
charge a set-up fee.
Alien Landholding Licence
Foreigners must
apply to the Ministry of Planning for an Alien Landholding Licence
which costs EC$1,500, is non-refundable and does not need renewing. The
process takes up to 16 weeks as the application is vetted by the
Physical Planning Office of the Ministry of Physical Development,
Environment & Housing, approved by the Prime Ministers Office and
finally by the Office of the Attorney General.
Your locally
appointed lawyer will make the application for the Alien Landholding
Licence on your behalf. Along with your completed application you will
need to provide the lawyer with the following information:
Certificate of character for each applicant (from your local police station)
A bank reference
Your CV
A copy of your passport data page
Full set of fingerprints (from your local police station)
Statutory declaration
4 passport size pictures of each applicant
Full
details of the proposed property or land purchase (including a survey
plan and land register of the property (from the Vendor) and a value
assessment of the land or property (although the value assessment may
not be necessary
Receipt proving payment of application fee
Initial approval from the Development Control Authority (this may not be necessary).
In
addition to the application fee for the Alien Landholding Licence, the
following fees are applicable depending on the land area of your
property.
Land Area (in acres) Price (in EC$)
Under 1 $5000
1-10 $10,000
10-20 $20,000
20-50 $30,000
50-100 $40,000
100+ $50,000
Deposits
There
is no standard procedure on this, but common practice is to offer 10%
of the purchase price as a deposit, which is forfeited if the buyer
pulls out. If the vendor pulls out then the buyers 10% is returned as
well as 10% from the vendor plus an additional penalty of 10%. In the
unlikely event that the Alien's Landholding Licence is not granted, then
the deposit is refunded.
Annual Property Tax
5% of the unfurnished rental value of your property, regardless or intent of use.
Stamp Duty
2% of purchase price
Vendors Tax
10% for non citizens or 5% if the property is owned by a local citizen of St Lucia.
There
is no vendors tax if the property is owned by a company as you would
transfer the shares in the company as a way of transferring the property
(rather than by deed of sale). It is therefore best that all foreign
clients sent up a local company and to apply for the license in the
company's name. When you come to sell, you will be selling the company
rather than the property itself.
There is no capital gains tax, inheritance tax or gift tax in St Lucia.
Local solicitors / lawyers usually charge 3% to 5% of the purchase price.
There
are certain very attractive tax incentives available to a selection of
'returning residents' of St Lucia including the right to ship a
container of 'personal goods' without paying duty on them and importing
or purchasing a vehicle duty free.
To qualify for 'returning
resident' status you must be a citizen of St Lucia, either by birth or
parentage who is returning to St Lucia after a minimum of 10 years off
the island or be married to the aforementioned citizen.
There are
strict guidelines as to what constitutes 'personal goods' and various
limitations that should be read thoroughly. For up-to-date information
please contact your local Consulate General of St Lucia, or contact one
of our agents.
Example of a full listing here - http://www.guidetostlucia.com/returning-residents.html
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