FAQs about buying property in St Vincent

• 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. Vincent & the Grenadines 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. Upon granting the Licence, the purchaser pays an Alien Land Holding Licence fee which is currently 7% of the purchase price. The acquisition of real estate does not automatically grant citizenship.

Title Deeds. There are two different systems of transferring and showing proof of ownership to 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. 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

How much are legal fees?

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

• Legal fees usually between 3% to 5%.
• 5% of purchase price for stamp duty.
• 7% of purchase price for Alien Land Holding License Fee.

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.

Taxes. Property tax is payable to Government by owners of land and/or buildings and every property is given a unique reference number when it is entered onto the Tax Roll. Properties become rateable or taxable when any one or more of the following conditions are satisfied:

1. When it is occupied
2. When it is in use
3. When it is completed

• Tax on developed land (land with buildings) - 5% of the annual rental value.
• Tax on undeveloped land in St Vincent ranges from $1.50 to $9.00 per acres.
• Tax on undeveloped land in the Grenadines ranges from $0.30 to $1.20 per acre.
• Tax on hotels or guest houses - 2.5%.
• Tax is payable annually between July 1st and September 30th.

What are the holiday letting opportunities?

The St Vincent 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.