Turks and Caicos Property

Buying Property in the Turks and Caicos
There are no restrictions on foreign ownership of property in the Turks and Caicos and the buying process is simple and easy to follow.

Owning Property in the Turks and Caicos
Owning property, a home or a business in the Turks and Caicos is also easy for foreign nationals, with all properties registered in the Turks and Caicos Land Registry and the title
guaranteed by the Crown.

Property Tax
The Turks and Caicos has no tax on the ownership of real estate, although owners will need to pay a one time transfer tax (Stamp Duty) which applies to anyone purchasing a property. Please see section below on stamp duty.

The Purchase Process
Before viewing property in the Turks and Caicos, it is wise for the buyer to have a good idea of what he can afford to purchase, allowing around 10% above and beyond the actual purchase price of the property for closing fees.  The actual sum of these fees may vary between 7% to 11% of the purchase price of the property.

It is recommended that buyers have their financing organised for the property purchase before making offers for a property or entering any agreements.  If this is not possible, the financing must be ready by the time that the official Deeds of Sale are signed at the Attorney's office.

For foreign buyers it is better to take out a second mortgage on their existing home property, or sell a property, rather than try to organise a mortgage in the Turks and Caicos where the interest rates usually 3% higher.  Also the banks in the Turks and Caicos will need an appraisal of the property being purchased, to make sure it is correctly valued correctly.

When buying property in the Turks and Caicos Islands, the process normally starts by the parties signing a preliminary agreement which contains the basic terms and conditions applicable for the purchase of the property. Once this agreement is signed, the seller is committed to sell the property.
 
The next step requires the buyer to pay a security deposit, which is normally 10 percent of the agreed purchase price for the property.  This Security Deposit is paid to a local Attorney chosen by the buyer or recommended by Caribbean Land and Property.

The Attorney will usually request that the buyer  provide copy of a valid passport or identification card and complete a form giving details of the property purchase and the buyers personal details

The conveyancing of the property will usually not take longer than 6 to 8 weeks, depending on complexity of the transaction.

Once this process is completed the buyer will be contacted by the Attorney for an appointment to sign the deed and make final payments prior to the appointment date; for foreign owners it is usually more convenient to have the agreement sent for signing by courier service and pay the final payment by wire transfer.

Turks and Caicos Property Stamp Duty 
Since May 2010, stamp duty in the Turks and Caicos Islands has been substantially reduced to make purchasing a property in the Turks and Caicos even more attractive than it was formerly, when stamp duty was 9.75%. The new rates established by the Turks & Caicos Government are as shown below and offer a small discount on the stamp duty, if paid in full at the time the property is purchased.

Buyers should note that property purchases in the Turks and Caicos do not require title insurance, or an alien landholders license, as required in many Caribbean countries; also the property once purchased does not attract any annual property taxes.

The new stamp duty rates established by the Turks & Caicos Government are as shown below :-

Providenciales, Parrot Cay, Pine Cay, Ambergris Cay and Water Cay purchases:

Property Value
Below US$25,000             No duty payable

US$25,001 to  $500,000   4% payable either as one payment at closing discounted to 3.6%, or 4 equal payments of 1%

US$500,000 to  $1.5M      6% payable either as one payment at closing discounted to 5.4%, or 4 equal payments of 1.5%

US$1.5M to $3M               8% payable either as one payment at closing discounted to 7.2%, or 4 equal payments of 2%

Over US$3 Million             10% payable either as one payment at closing discounted to 9%, or 4 equal payments of 2.5%.

Grand Turk, South Caicos, Middle Caicos, North Caicos, East Caicos and Salt Cay:

Property Value
Below US$25,000             No duty payable

US$25,001 to  $500,000   2% payable either as one payment at closing discounted to 1.8%, or 4 equal payments of 0.5%

US$500,000 to  $1.5M      3% payable either as one payment at closing discounted to 2.7%, or 4 equal payments of 0.75%

US$1.5M to $3M              4% payable either as one payment at closing discounted to 3.6%, or 4 equal payments of 1%

Over US$3 Million             5% payable either as one payment at closing discounted to 4.5%, or 4 equal payments of 1.25%.

Disclaimer: Caribbean Land and Property work hard to provide correct and current information on buying Turks and Caicos Property, however, buyers must verify the information provided with a local attorney, aware of all the current laws and regulations and any pending changes, prior to any decision to purchase property in the Turks and Caicos Islands.