Beautiful Beaches
A Foreigner needs an Alien Land Holding License to own property on St. Kitts, except in Frigate Bay, which is exempt. This should take about a month for approval. Closing costs are calculated as a percentage of the purchase price and are as follows:
●Legal fees (estimated) 2%
●Alien Land Holding License 10%
●Total 12%
All beaches are public and have at least one established access. Fully serviced lots cost from US$80,000 to US$250,000 depending on the size and location. Construction costs vary. US$110 per square foot of roofed area depending on location, design and quality of finish. A 2,000 square foot house takes about 10 months to build. There is a good Government water supply below the 800′ contour. Water costs EC $10 (US $3.70) per 1,000 gallons. Electrical charges for an average family in a 3 bedroom house heating water with electricity is roughly EC $350 (US $130) per month. Cable TV (42 channels) costs EC $87 (US $32) per month. Grounds maintenance for 0.5 acre costs approximately EC $320 (US $120) per month. A 3 bedroom house with pool (not on the beach) rents short-term for US $2500 to US $3000 per week in high season, US $1200 – US $1500 per week in low season.
Rental commissions vary from 15% to as high as 25%. Long-term rental (3 months plus) from US $1000 to US $1600 per month and normally attract a 10% commission. Maid services costs EC $15 (US $4.05) per hour. Property insurance (fire, hurricane, earthquake) costs 1% of the sum insured. There is no personal Income Tax or Inheritance Tax. House Tax ranges from US $800 to US $2,000 per annum. The EC dollar is tied to the US dollar at a fixed rate of EC $2.70 to US $1.00. You can also have foreign currency accounts at most of the banks. St. Kitts & Nevis have an excellent reputation as an offshore financial center with up-to-date legislation covering the formation of IBC’s and asset protection trusts. An Economic Citizenship Program exists providing the possibility to qualify for citizenship through investing over US $350,000 in pre-approved real estate projects.
Process of Purchasing a Property on Nevis
1) Any person who is not a national of St. Kitts and Nevis needs an Alien Land Holding License to own property on Nevis. The approval process takes about 3 months and any lawyer will have application forms and can assist you with filling them out.
2) Negotiate and agree on price and what is being sold (furniture, equipment, and even vehicles).
3) Appoint a local lawyer.
4) Sign Sales Agreement, normally a deposit of 10% of the purchase price is paid at signing of the Sales Agreement. This agreement should be contingent on (a) the Government appoving your Alien Land Holding License application or (b) the Government making a decision on the Alien Land Holding Application in a reasonable period of time.
5) Once the Alien Land Holding License is approved you move to closing.
The Purchaser pays:
●The balance of the purchase price 90%
●Alien Land Holding License fee 10%
●Legal fees approximately 2%
The Seller pays:
●Government Stamp Duty of 12%
●Settle all obligations through and including the closing date, including but not limited to telephone, cable TV, electricity, water bills and house and land tax.
On completion of the sale, the Seller shall deliver to the Purchaser a Memorandum of Transfer of the Land hereby sold, executed by the Seller in favour of the Purchaser to transfer the title to the land to the Purchaser free and clear of any liens or encumbrances whatsoever, except for standard utility easements.
Cliff off St. Kitts
Real Estate in St. Kitts and Nevis
A foreign national who wishes to acquire real estate on St. Kitts & Nevis will need an authorization known as an alien land holding license as stipulated by the Alien Land Holding Regulation Act Cap. 102. However, the acquisition of real estate with the aim of obtaining citizenship is in any case limited to developments which possess a corresponding special authorization issued by the government.
St. Kitts & Nevis has two different systems of transferring and showing proof of ownership of real estate. Under the British deed system inherited from the colonial period, title to property can be transferred with a deed in accordance with the Conveyancing and Law of Property Act, which requires a search at the Registry of Deeds for upwards of 35 years. A second option is to acquire property by means of a Certificate of Title based on land surveying plans and subsequent entry in a title register on the basis of the Title by Registration Act. The acquisition of title to property via a deed is less secure because the deed applies only to the seller and buyer and does not preclude a third party from asserting a better title. A valid property title can be acquired only if the basis of the current property title can be demonstrated to go back 35 years by submitting proof of an unbroken ownership chain. A Certificate of Title is preferable to a deed.
A title certificate gives the buyer a government guarantee and a right in rem or title insurance, and such a title is valid with respect to everyone. A title certificate also displays all encumbrances, such as mortgages, on the property. If a property is acquired by means of a deed, the buyer or owner may subsequently request registration under the Title by Registration Act at any time by applying to the Registrar of Titles. St. Kitts & Nevis is a small country in which lawsuits concerning disputes of ownership title to property are very rare. Before every acquisition, a lawyer will naturally check whether the ownership title is correct and unencumbered, and any problems will practically always come to light in the course of these enquiries and can be cleared up in advance.
Various acquisition costs are payable when buying property. In particular, a contribution of 0.2% must be made to the Assurance Fund. This is a contribution to title assurance which is a legal requirement on St. Kitts and Nevis in respect of transfers by Certificate of Title. The preparation of a survey plan costs about US$ 300, and the mandatory lawyer will charge a conveyance fee of about 2.5% of the purchase price. Accordingly the total real estate acquisition costs amount to approximately 3% – 4%. It should also be borne in mind that whenever the property is sold, the seller would be required to pay a transfer tax of 12% of the selling price. Furniture and Fixtures can usually be imported duty-free.
The Comptroller of Inland Revenue assesses the market value of the property and a property tax of 0.2% is levied annually on this market value. If the property is rented out, any rental income is tax-free for the owner. In the event of a sale, there is no capital gains tax to pay either. The tax system on St. Kitts & Nevis is also financially interesting for those who wish to become resident there. This is because income is not taxed and there are no wealth taxes either.
The minimum investment requirement to qualify under the economic citizenship program as set by the Government is US$ 350,000. Like everywhere, however, prices have no upper limit, and if one is prepared to spend several million US$, a luxury property containing all conceivable comforts and conveniences may be acquired.
Real-estate prices in St. Kitts and Nevis have seen a very stable growth over the last 15 years. Prices are supported by the citizenship option that foreign purchasers of real estate have, which creates an extraordinary stability of the real-estate market compared to other countries in the region and beyond. This is particularly important during economic downturns such as the current economic crisis that the world is experiencing, and therefore an investment in real estate in St. Kitts and Nevis actually is a safe option to invest funds.
