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.
Acquiring Real Estate in St. Kitts & Nevis
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.
Real-Estate Transfer Taxes and other Costs
Various acquisition costs are payable when buying property. Thus the government levies stamp duty of 6% of the purchase price, and another 0.5% contribution must be made to the national Assurance Fund. These are contributions to a title assurance which is a legal requirement on St. Kitts & Nevis. The preparation of plans costs about another 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 9 - 10% of the purchase price. All furniture and fittings can be imported duty-free.
Annual Taxation
The Comptroller of Customs assesses the annual rental value of the property and a 5% land tax is levied annually on this rental 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.
Real-Estate Prices
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.
Further Information
Through its offices in Basseterre, St. Kitts, and Charlestown, Nevis, Henley & Partners assists individual clients regarding all aspects of real estate on the islands and in investing and doing business in St. Kitts & Nevis and throughout the Eastern Caribbean.
The specialized services of Henley & Partners are also a resource and complement the services of other consulting and law firms. We frequently assist other firms and their clients with the unique and specific details required by the acquisition, holding and sale of real estate, the acquisition of citizenship under the citizenship program, investment in St. Kitts & Nevis and related tax planning. Please contact us for more information.
