Stamp Duty
- Tax free jurisdiction
- No Income Taxes on revenue generated from property.
- No Capital Gains Tax on property transfers.
- No Estate or Inheritance Taxes.
- No Corporate Taxes or Exchange Controls.
When purchasing property in Turks and Caicos an additional cost
to be aware of is Stamp Duty. As there are no property taxes in
the island community, government tax is collected at the time of
purchase. Stamp Duty isn’t necessarily a small cost, but when
factoring in what property tax would have cost over the years, it is
a very fair trade-off, especially if you intend to keep your property
for an extended period of time.
Stamp Duty can fluctuate depending on the current economic
state, with dips in tax costs during times of recession to motivate
buyers to purchase.
The current tax rates in Providenciales are as follows:
- For Providenciales, Parrot Cay, Pine Cay, Dellis Cay,
Ambergris Cay, Water Cay, East & West Caicos
6.5% = between $25k and $250k
8% = between $250k and $500k
10% = over $500k
- North, Middle & South Caicos and Grand Turk & Salt Cay
Islands
5% = between $25k and $100k
6.5% = over $100k
Please Note: Stamp Duty is paid only on the purchase amount
less the Chattels
These numbers may be lower on other islands in the Turks and
Caicos community. As Stamp Duty is an upfront cost buyers need
to include this amount when considering their purchasing budget.
Due Diligence Required for Real Estate Sale?
Here’s a list of items required to purchase Turks and Caicos
Real Estate:
1. A notarized copy of the picture page of your passport.
2. A notarized copy of your driver’s licence.
3. A reference letter from your bank or other financial
institution addressed to (Realtor Office or your TCI
attorney), Providenciales, Turks and Caicos Islands
indicating how long such financial institution has been
providing banking services to you, that the banking
relationship has been satisfactory and that the financial
institution has no reason not to recommend you as a
person with whom to do business (or words to that effect –
sometimes the banks are fussy about what they will and
will not say).
4. A reference letter from a professional (lawyer, accountant,
doctor, etc.) addressed to your Realtor or your TCI
attorney) Providenciales, Turks and Caicos Islands
indicating how long such professional person has known
you, the connection between you, that such professional
person considers you to be respectable and trustworthy,
and recommends you as a person with whom to do
business (or words to that effect).
5. A copy of a bank statement, credit card statement or
household bill, no older than 3 months, addressed to you
at your home address, as a confirmation of your address.
Freehold – Title is held Absolutely
Freehold title is the most familiar type of real estate in the Turks and Caicos Islands. It means free and clear title to real property and the owner may sell the property at any time.
The owner of the property has complete ownership to the
property including any improvements of buildings and structures and holds all the rights to the property.
Leasehold – Title is held for the duration of the Lease
As the owner of a leasehold property in the Turks and Caicos
Islands, you own the buildings and structures located on the
piece of land, but not the land itself. The land is owned by another party and they grant a lease for a certain period of time to the purchaser or owner of the structures upon the land. When the lease expires, the property reverts back to the owner.
CITIZENSHIP & RESIDENCY IN THE TURKS AND CAICOS
There are essentially six categories of legal residency status. Only people with Turks and Caicos Islander status (previously titled Belongership) can vote, and they account for approximately 42.5% (2012 Census) of the population.
Types of Status
- Resident Foreigners with Annual Resident Permit and
Work Permits: This represents the majority of foreign
workers in the country, who are restricted to their category
of work and employer. - Resident Foreigners with Permanent Residence Status
(PRC), with or without the right to work: Most retirees or
people who have invested in the country are granted PRC
status, usually without the right to work - Citizens (holders of British Overseas Territories
Citizenship by virtue of a connection with the Turks and
Caicos Islands): This entitles you to a passport (which
says Turks and Caicos Islands on the cover) and gives you
residence and work rights. This passport, without having the
separate Turks and Caicos Islander Status, does not give the holder voting rights or the right to open restricted
business categories. - Turks and Caicos Islander Status (previously titled
‘Belongership’): This status is needed to vote, hold
government office, or own a reserved business category. It
does not entitle you to a passport, but gives you all other
rights normally associated with citizenship. It is possible to
hold Islander Status, but not have citizenship (a local
passport), as these two statuses have historically been
independently granted. - Joint Citizens and Turks and Caicos Islanders: This
represents the majority of the 42.5% (2012 Census) voting
population in the country. They hold the British-granted
Overseas Territories Citizenship, which gives them a
passport, and the locally granted Turks and Caicos Islander
status, which gives them voting rights in the country. - Our Immigration Regulations provide that you are eligible to
apply for Permanent Residency in the TCI in the event that
you have invested no less than US$1,000,000.00 in a home
in Providenciales and no less than US$350,000.00 in the
actual construction of a new home or the purchase or
renovation of a distressed property in Grand Turk, Salt Cay,
South Caicos, Middle Caicos, or North Caicos. - Prior to making such investment you may apply for an
undertaking that, provided you have met the requisite criteria
under the Regulations, you will be issued with a PRC. I
would mention that the Regulations provide that this is done
through the Governor’s office, however it is actually
processed through Invest Turks & Caicos. - PRC does not give you the automatic right to work in the
TCI. - The fee for obtaining a PRC is $25,000.00 of which
$1,500.00 is non-refundable. Additionally, there is a $200.00
Government fee for a spouse and each dependent child to
be endorsed on the PRC. - Once issued, PRCs last for the lifetime of the holder. A PRC
can be revoked, but revocation is under exceptional
circumstances. - With regard to applying for BOTC, you will be required to
show evidence that you have held a PRC for no less than 5
years prior to making such application. - You are not required to physically reside in the TCI in order
to retain your PRC. That being said, in the event that you
wish to apply for BOTC, you will be required to show that
during the 5 years prior to your application you have not
been absent from the TCI for more than 450 days and no
more than 90 days within the preceding 12 months of the
application. - Other Property in the Turks and Caicos Islands is registered under its own block and parcel number. The Land Registry office processes applications for the registration of transfers of property (from owner to owner), all charges to be registered on title, restrictions, leases, easements and cautions along with restrictive agreements. Every owner is registered on the title and the Government guarantees the ownership. This is one of the benefits of purchasing property in the Turks and Caicos Islands.
- Property may be purchased in a personal name or owned by a
TCI company. There is no restriction on foreign ownership of real estate in the Turks and Caicos Islands