Property laws vary from island to island, says Richard Way editor of the Overseas Guides Company. This month he looks at buying on Antigua, Grenada, Trinidad & Tobago and Bermuda
Antigua
Antigua was granted full independence in 1981 but is still a part of the Commonwealth and a member of the United Nations. With English as the official language, a government that encourages foreign investment and a stable political system in place, the island is a very popular spot for overseas property investors, especially since it boasts the added attraction of being a tax haven.
Temperatures are mild, ranging from the mid-seventies in the winter to the mid-eighties in summer. With annual rainfall only averaging 45 inches, it has become one of the most popular islands with expats looking to buy abroad.
There are a number of points to bear in mind when buying property in Antigua, and the help of an independent lawyer should be retained to make sure that all regulations are adhered to.
Non-nationals must apply for a non-citizen landholder licence from the government – note that each licence is specific to the property applied for. Buyers need to ensure that surveys have been completed, title searches are in place and that the sale agreement with the vendor is cast in stone at this point.
The licence costs approximately 5 per cent of the value of the property and may take several months to be approved. Transfer fees amount to 2.5 per cent of the purchase price, with the seller paying 7.5 per cent. Legal fees are generally about 1.5 per cent and on completion of sale the transfer has to be registered at the local land office.
Grenada
The islands of Grenada, Carriacou, Petite Martinique and a number of smaller islets comprise the tiny Southern Caribbean nation of Grenada, which is developing into a financially viable target for property investors from abroad. The greater part of the population lives on the island of Grenada, where most of the amenities are situated.
The island was ceded to the British in 1763 under the Treaty of Paris and in 1877 Grenada became a British Crown Colony. Independence was granted in 1974. The official language is English but Grenadian Creole is considered the lingua franca of the island with a French patois being spoken by about 10 per cent of local people.
Small the island may be – only 344 square kilometres - but the beaches are some of the best in the world with the Grand Anse Beach in St George regularly appearing in the world's top 10 lists. Tourism is growing year-on-year and is the main income generator on the island, accelerated by the construction of a new cruise ship pier and esplanade in St Georges.
As with Antigua, non-nationals wishing to purchase property in Grenada should first identify the property to be purchased in order to obtain an Aliens Land Holding Licence. They should then agree on a price with the vendor and make a 10 per cent deposit, which is held in escrow until the process is complete. A lawyer needs to perform a title search and prepare the title deed. At this point an application for an Aliens Land Holding Licence is submitted which needs to be accompanied by a police clearance from the purchaser’s country, a banker’s reference and a character reference. This may take a few months to come through. On receipt of the licence the purchaser is required to pay an Alien Land Holding Tax, currently 10 per cent of the purchase price.
Most land is freehold and the purchase process usually takes about six months. Further purchase costs include 5 per cent of the purchase price for Grenada for General Consumption Tax, payable at the Inland Revenue Office, 1 per cent of purchase price for Stamp Duty paid at the Deeds and Land Registry and about 2 per cent for legal fees to prepare title deed and title search.
Once all has been satisfactorily settled the registration of the new title Deed in the Deeds and Land Registry takes about 60 days.
Trinidad and Tobago
The Republic of Trinidad and Tobago is located in the southern Caribbean, just off the coast of Venezuela and south of Grenada. Trinidad is the larger and busier of the two islands, whilst Tobago, with its lovely rainforests and spectacular beaches has far fewer tourists.
Property in Tobago is relatively inexpensive compared to islands such as Barbados, with an increasing demand for middle-income housing. The process of buying land and property on Tobago or Trinidad is straightforward: foreigners and foreign companies may purchase up to one acre of residential land and/or up to five acres of commercial land without applying for a license. Any purchases over this and you must apply for an Alien Landholder Licence through the government.
Permission to buy land does not mean that the buyer has residency. A non-resident is usually allowed up to three months, with some countries needing a visa. By the same token, buying a commercial property does not confer the right to work in Trinidad and Tobago; work permits are required for any employment exceeding thirty days.
Those wishing to purchase land of more than five acres must have a development licence from the Tourism Development Company.
The buyer generally pays a 10 per cent deposit to be held in escrow while all the necessary title searches are done by an independent lawyer. There should also be a search from the utilities and Water and Sewage Authority (WASA) – this can take up to six weeks.
Once the title of the property is verified and all records checked, a Memorandum of Stamp Duty should go to the Board of Inland Revenue for assessment and payment. Once paid, the Memorandum of Transfer is stamped can be presented for registration with the Land Registry.
Bermuda
Often mistakenly labelled a Caribbean island, Bermuda sits alone in the Atlantic, 650 miles off America’s North Carolina coast. With a population of 65,000, it’s a British territory; British visitors don’t need a visa but emigration there is very restricted.
Despite attracting half a million tourists each year, the island’s main draw is as a tax haven. There are an estimated 14,000 companies registered there and a fifth of the workforce comprises outsiders, mainly working in finance or insurance on a typical six-year permit. Be warned though: while there is no income tax, the government loads indirect taxes on property, vehicles, shopping plus a 16 per cent payroll tax.
Being a tax haven - and so small - has given Bermuda a certain amount of exclusivity when it comes to property. Outsiders can usually only buy property already owned by foreigners and prices are high, although fractional ownership schemes are popular there now as second home options. As well as stamp duty, buyers must acquire a licence to purchase, costing 22 per cent of the purchase price (15 per cent for condos).
