FAQs about buying property in St Lucia

• What are the procedures?
• How much does it cost?
• Taxes
• Can I let my property?

What is the process?

Alien Land Holders Licence. A foreign national who wishes to acquire real estate in St. Lucia will need an authorization known as an Alien Land Holding License as stipulated by the Laws of the Country. Once a property has been selected and prior to a purchase being completed, an application should be made for an Alien Land Holding Licence. This application is usually made by a lawyer and involves a police clearance from the purchaser's country, a banker's reference and a character reference. The acquisition of real estate does not automatically grant citizenship.

A non-refundable deposit of 10% is required while the Licence is applied for after which the conveyancing process is the same as the UK.

How much are legal fees?

Various acquisition costs are payable when buying property and include :-

• Legal fees usually between 3% to 5%.
• 2% of purchase price for stamp duty.
• The Alien License fee is XCD5,000 for properties measuring less than one acre and XCD10,020 if the property is more than one acre. There is also a non-refundable license application fee of XCD1,500.

What are connection fees?

New properties are connected to electricity, telephone and water supplies on the completion of the development and the utility companies charge each property an amount based on the cost of connecting the development. The cost varies depending on the area and the distance from the nearest supply but is rarely more than £500 in total.

Are there any service charges?

Most new developments of villas or apartments that have communal facilities now arrange maintenance and will charge an annual service charge.

Running Costs

• Electricity supply is 120 volts AC 60Hz. The power supply is subject to disruption and we can supply back up generators or UPS systems on request.
• Drainage is via individual septic tanks which require servicing every 18-24 months at a typical cost of £25.
• Telephone lines can take several months to be connected but do provide International direct dialling. Internet connections are relatively cheap at no more than £10 p.m. Broadband is available by satellite but is expensive at present.
• Satellite (US) TV is available.

On the whole there is very little taxation on the island and it could be described as a tax haven. There is no VAT, no Capital Gains, no estate duties. Income tax exists on rental income. There are tax breaks available dependent on individual circumstances, so seek advice from your local lawyer or tax specialist.

However, there is a sales tax of 10% and it may be more efficient to form a local company to hold the property.

What are the holiday letting opportunities?

The St Lucia holiday market is growing rapidly and there can be a shortage of hotel rooms at peak seasons. The letting market is therefore buoyant and we offer a management and letting service for our developments that should produce a healthy income.

Please call 01252 376003 for more details

With the right people assisting you, purchasing an overseas property can be an enjoyable and rewarding affair ... one, we at Property Club International are familiar with. If you still have questions having read this section, please don’t hesitate to contact us!

Some of the information in these sections has been supplied by third parties and Property Club International Ltd and its associated companies cannot be held responsible for any errors or omissions. Professional advice should always be sought at the time of purchase. Please note that tax rates may differ from the examples given above,are subject to change and will be applied at the rate ruling at the time.