White Sands on Antigua Beach Call to Sunbathers
The government of Antigua & Barbuda owns 55% of the land in Antigua. The ramaining 45% is privately owned. Currently, land ownership is prohibited on the island of Barbuda. The Land Department under the Ministry of Agriculture, Lands, Marine Resources is the main governing body.
Land Acquisition
Both citizens and non-citizens can lease of buy land from the government or the private sector. Buying through the government is always conditional on approval of a proposed project by line ministries and the Cabinet.
Alien’s Land Holding License
Land sold to non-citizens is subject to the Non-Citizen Land Holding Regulation Act, that makes provisions for the buyer to obtain a license to purchase land. It is advised that the buyer consults with a local attorney.
DCA
Land use for commercial is deemed for agricultural and industrial or tourism use. The Town and Country Planning office of the Development Control Authority (DCA) designates land usage areas.
Identifying Land
Government manages several industrial estate and other plots for suitable projects. Private sector land focuse on land acquisition and leasing of commercial and residential space. There is a thriving private market for renting and selling vacation related properties in Antigua. Currently there are no privately owned or managed industrial estates.
Government Land
Presently there are seven designated industrial estates on Antigua. The Land Department, the Free Trade and Processing Zone and Industrial Development Board manage these estates.
Buying a Property in Anitgua – Considerations, Costs and Legalities
One of the first considerations to make about buying a property in Antigua is ‘What is its primary purpose?’ i.e. residential, rental or a commercial business property.
There are a variety of locations across the island, so you are sure to find the one, which matches your dream.
Residential
the main expatriate populations on the island are based in the South East around English Harbour and Falmouth, in the South West in and around Jolly Harbour, in the East at Half Moon Bay and Browns Bay, and in the North in Hodges Bay and Cedar Valley and surrounding areas. As with buying a property anywhere, there is excellent choice in price, style of building and proximity to services. Location is the key to your enjoyment and usually to the value of re-sale.
Rentals
can be found throughout the island from studio apartments to five bedroom executive villas with all the toys and wonderful ocean views, the key consideration is what is your budget – once you know that you should be able to find a property to suit you.
Antigua has an Abundance of Clear Waters
Commercial Properties
there are many business opportunities in Antigua for Antiguan local’s, ex-patriots and foreign investors, particularly where jobs are created for local people. The majority of retail outlets have their primary in the busy capital of St. John’s, but there are further developments around the island, particularly in Jolly Harbour and English Harbour.
Costs of Purchasing Property in Antigua
The costs of acquiring a property in Antigua can vary depending upon where you are purchasing, and the cost of the property. Below we have listed for you the key costs involved and used examples so that you can see the full cost of buying a property here.
General Costs
Non-citizens licence 5% of value (Applicable to non-Antiguans)
Government transfer fees 2.5% of value
Legal costs Legal costs 1% or more based on the value
For a property costing US$300,000 – this would be a cost of US$25,500.
Exceptions
The Non-citizen’s License for Jolly Harbour or some other developments for first time Buyers is 3%.
Acquisition Considerations
Property taxes and rates are very low and based on rental value
Most property is fee simple or freehold.
Insurance coverage is approx 1.4% of the value insured for hurricane and earthquake coverage. Less when these are excluded. On claims the insured pays the first 2% of the insured value.
Real estate agent commissions are generally from 5-7%. These fees are paid for by the Seller, and are built into the Asking Price.
If you are buying a property with the intention of renting it then click here to find out the costs of renting in Antigua.
Selling a Property in Antigua
When first taking the decision to buy a property in Antigua, it is also worthwhile understanding the costs of selling the property, if you decide to do so at some point in the future. Generally the costs are as follows:
Stamp duty and government transfer fees 7.5%
Real estate agents fees 5-7%
This would mean for a property value of $300,000 the cost of selling the property in Antigua is between US$40,500 and US$46,500 if you use a real estate agent to market and sell your property.
Renting a Property in Antigua – Considerations, Costs and Legalities
Buying to let/Rent your property
When buying a property with the intention to rent in Antigua, there are a few important factors you need to be aware of:
Long-Tern Rentals
Property management fees 10% of the rental value
Rental commissions 8.33% of the rental value of the contract.
Rental commission is equivalent to the first months rent on an annual contract
On long-term contracts the Tenant usually pays utilities, gardening, pool, maid service and all expenses.
Short-Term Rentals
Short-term rentals are those for terms of one month or less. On short-term rentals the agency commission can vary from 15% to 30%, most commonly 20%.
On short-term rentals, the landlord pays for utilities, pool, gardening, and 6 days a week maid service. Chefs are available at an extra charge. The tenant is usually expected to tip the staff at the end of the visit.
You can hire Automobiles at the airport or other locations around the island.
Property Management Services
Each property management company provides different services, but generally, setting up the property on arrival for the client, dealing with any problems while the property is let, and dealing with the appropriate authorities on anything from paying the electricity bill, to organising the gardener.
Rental Commissions
Rental commissions are paid to cover the cost of marketing the property for rent. This can be anything from Internet sites, to newspaper adverts overseas depending upon the way the company is structured.
Witholding Taxes
Withholding taxes are due to the Antiguan Inland Revenue.
Withholding tax of 25% of the net rental value are applicable to all non-residents. Net revenue is the revenue after all deductions.
