Golden Sunset in the British Virgin Islands
Process of Buying Real Estate in BVI
1. Appoint a BVI lawyer to assist you with the purchase.
2. Submit your Offer along with a 10% earnest deposit, which will be held in escrow pending acceptance and completion.
3. If your offer is accepted, you will enter into an Agreement for Sale and Purchase with the Seller. If not, your deposit is returned to you.
4. If you are not from the BVI the property must be advertised for four weeks in the local press to give any local person the opportunity to purchase the property on the same terms.
5. If applicable, your lawyer will help you apply to the BVI Government for a “Non Belonger’s Land Holding Licence”. Approval of this licence gives you permission to own the particular property.
6. Completion and transfer of title typically happens 30 days after the Governor of the BVI has signed your Licence.
Take note, if your Licence takes a little longer to be approved than you might have expected, don’t panic. Whilst completing and submitting your application is not particularly complicated, it can take a while to work its way through the system and a wait of several months is not unusual. Consider this to be your first test of your ability to live on island time!
Legal Fees
Typically in the BVI, both the buyer and the Seller will be represented by a BVI lawyer. Typically the law firms will charge a foreign buyer between 1.5% and 2% of the purchase price, depending on the value of the transaction.
Appraisal
An appraisal of the property is required and the typical fee for a home of less than $1m is in the region of $750.00 although it does vary.
Non Belonger Land Holding Licence Fees
A property can be purchased in an individual’s name or jointly or in a company name. The current Licence fees are as follows:
Application Fee
Company $500.00
Individuals $200.00
License Fee
Company $1000.00
Each Shareholder or Directors $600 each
Individuals $600 each
Snorkeling in The British Virgin Islands
Property Taxes
If you are not from the BVI, Stamp Duty of 12% of the sale price or appraised value, whichever is higher, is payable upon completion and transfer of title of freehold property (Leasehold is less).
Annual Property Taxes in the BVI tend to be in low hundreds of dollars, not low thousands of dollar.
