What's so Great about St Kitts?

St Kitts is fast becoming the most popular destination for overseas investors in the Caribbean. It used to rely on its sugarcane industry for its economy, but after this collapsed it began to concentrate on attracting foreign investment. This meant promoting the island to tourists which makes perfect sense as it is ideal as a year round holiday destination.

As yet it's still quite underdeveloped when compared to other nearby Caribbean islands, and the property market is still developing as many sellers are holding on in anticipation of prices rising in the near future. It has already attracted major hotel chains who have built luxury resorts, and an increasing number of cruise ships are choosing to stop at the island.

The capital of St Kitts is Basseterre which is located on the south-west coast of the island and is surrounded by mountains and hills. While the capital is home to some beautiful historical ruins it has also been subjected to some of the worst natural disasters in the Caribbean. In 2007 it hosted the Cricket World Cup and is able to offer good quality services and a substantial infrastructure.

The second largest town is Sandy Town on the north-west coast which was first developed in the 1620s when it had an active shipping port and was an important commercial centre.

It's now an industrial centre for manufacturing equipment but is also attracting tourists due to amenities such as the La Vallee golf course being built. It's the entrance to the Brimstone Hill Fort which is a UNESCO world Heritage site, and is the only man-made UNESCO site within the Caribbean. It was classified as a national park in 1987 and has undergone extensive restoration making it a popular tourist attraction.

The Cost of Buying, Selling and Renting out Property in St Kitts

The cost of buying property in St Kitts can be quite high, even though most overseas buyers purchase their properties for cash. Transactions generally take around 2 to 4 months to complete which includes all due diligence, transferring deeds and payment of government duties.

Anyone wanting to purchase property in St Kitts will have to obtain an Alien Land Holding License, although properties of less than two acres in Frigate Bay and the South East Peninsular ere exempt. The cost of this license is 10% of the asking price.

The stamp duty on purchasing a property is just 1% of the assessed value, but when it comes to selling the property the percentages are quite different:

Stamp duty is payable on the assessed market value of the property with condominiums being charged at 5%, freehold properties at 12%, properties in special development areas at 14%, and properties in the South East peninsular at 18.5%. Stamp duty is paid directly to the Inland Revenue by the seller’s solicitor.

Estate agents commission is generally 6%. In general the cost of buying the property will be about 11.5% to 13% of the property's value while the cost of selling is between 11% and 24.5%.

The rental laws in St Kitts are pro-landlord and are based on UK common law, but without the current levels of tenant protection legislation. There is no specific legislation on St Kitts and it is largely down to the rental agreement between landlord and tenants. There are two American universities on St Kitts, and foreign university students and workers form a large part of the long-term rental market. Gross yields are generally low at about 3.7% to 3.8%.