Location, style, and price are a small number of factors many consider when choosing a property to buy. For many people, the purchase of property in the Turks and Caicos is their first foreign property purchase. It is important that they are properly advised about the purchase process and all considerations while they are considering their investment options.
Here’s your step-by-step process to buying in Turks and Caicos.
No. Most funds are transferred and held in Attorney’s Client Trust Accounts.
I always advise purchasers and sellers to instruct Turks and Caicos Attorneys in their purchase and sale. Purchasers often ask if their US, Canadian or European Attorneys can act for them but their foreign counsel are not qualified in Turks and Caicos law, which governs their purchase and ownership.
The short answer is yes, but, this comes with some considerations.
1 – Commercial Banks in the Turks and Caicos are slower to approve loans than in many other countries.
2 – Lending rates are often higher than what people pay in their home country.
3 – Private lenders are available and can make swift decisions but their loan-to-equity ratio is usually 50% and their interest rates are higher (albeit they should be viewed as bridge financing and not a long-term lending solution)
There are no annual property taxes in the Turks and Caicos. There is a Stamp Duty Tax payable at the time of purchase. The rate of Stamp Duty is:
On Providenciales and East Cays, West Caicos, East Caicos and Ambergris Cay
$25,000 and under – 0%
$25,001-$250,000 – 6.5%
$250,000-500,000 – 8%
500,001- and above – 10%
On North Caicos, Middle Caicos, South Caicos, Grand Turk and Salt Cay
$25,000 and under 0%
$25,001-$100,000 5%
$100,001 and above 6.5%
Stamp Duty is payable on the value fo the land and any physical improvements on the property. The purchase price that is attributable to the contents is not subject to Stamp Duty.
There is no restriction on any individuals owning property in the Turks and Caicos. There is a restriction on foreign corporations directly owing Turks and Caicos property.