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%.
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