Buying Property In St. Lucia? What You Need To Know

Buying Property In St. Lucia? What You Need To Know


Are you interested in buying property in St. Lucia? This is what you need to know that can make the process easier.

The laws have been streamlined to make the process of buying property in St. Lucia quick and easy. Property can be purchased as a natural person, a local company or an international company. Each option should be looked at closely to see which best suites your needs. There are many options to choose from, you decide where you want to wake up every morning. Caribbean Habitats has a healthy list of luxury villas, country homes, condominiums for sale, not all are listed on our website.

Purchasing raw land is also an option for those who prefer to build their dream from the ground up. It is not hard to avoid St. Lucia Real Estate with breathtaking views of the ocean. Pick a mountain to perch your dream home on.

Interested in investing or to have a second / holiday home? There are several options of real estate options; residential/resort-style developments in St Lucia that offer excellent return on investment (ROI). Some even provide a guaranteed ROI when you place your property within their managed holiday rental pool. Choose from luxury villas, townhouses apartments and condominiums that allow you the freedom of owning your own holiday home, while generating an income in your absence. These properties are generally set within resort-style developments with restaurant, sporting, spa and other facilities on hand. This gives you peace of mind, knowing that your investment has added security. Most also offer property management services so that you enjoy carefree ownership of your Caribbean holiday home.

Below you will find what is needed for St. Lucians and what is needed for a Foreign buyers.


ST. LUCIA CITIZENS

  • Government Fee:

– There is a stamp duty of 2% of the purchase price to register the Deed of Sale.
– There is a stamp duty of 0.25% of the Mortgage price to register the Mortgage.

Legal Fees for the Deed of Sale (Purchase price):

– 2.5% tax on the first ECD 50,000
– 1.5% tax from ECD 51,000 to ECD 150,000
– 1.0% tax from ECD151,000 to ECD 1,000,000
– 0.5% tax from ECD1,000,000 upwards

  • Legal Fees for the registration of the Mortgage (Mortgage price):

– 2.5% tax on the first ECD 50,000
– 1.5% tax from ECD 51,000 to ECD 150,000
– 1.0% tax from ECD151,000 to ECD 1,000,000
– 0.5% tax from ECD1,000,000 upwards

  • copies and stamps EC$150.00

• The local Buyer has to provide the following documents:
– a letter from Inland Revenue for Property Tax Clearance and Income Tax Clearance
– a letter from National Insurance for Clearance.


  FOREIGNERS

ALIEN’S LANDHOLDING LICENSE

Foreigners wishing to purchase St Lucia Real Estate must first acquire an Alien’s Landholding License.

Things to remember:

  • A local attorney must register the license.
  • It is a permanent license, which does not require renewal.
  • The license is granted for a specific property (house and land) or plot of land and is not transferable.
  • For the application and consideration, there is a non-refundable fee of EC$1,500.00.
  • The license fee is EC$5,000.00 for properties measuring less than 1 acre and EC$10,020.00 if over 1 acre.

Below is the tiers of fees for property sizes:

The Alien’s Landholding License for one acre of land is $5,000.00. Below are the prices for the license according to the size of the land:

  • Over 1 acre and up to 10 acres  $10,000.00 EC (Eastern Caribbean Currency)
  • Over 10 acres and up to 20 acres  $20,000.00 EC (Eastern Caribbean Currency)
  • Over 20 acres and up to 50 acres  $30,000.00 EC (Eastern Caribbean Currency)
  • Over 50 acres and up to 100 acres  $40,000.00 EC (Eastern Caribbean Currency)
  • Over 100 acres  $50,000.00 EC (Eastern Caribbean Currency)
  • There is a future tax liability of 10% of the cost of the property or plot of land, when eventually sold. Note that the payment of the 10% tax can be avoided by making the purchase through a company, which can be formed at the time of purchase. Company formation takes approximately 6 weeks and cost EC$3,200.00.
  • License applications take 6 to 8 weeks to process and is normally done during the early part of property purchasing process.

Note that when obtaining an alien’s landholding license to buy land only, you are required to build within 2 -3 three years of purchase.

Procedures for Acquiring an Alien’s Landholding License

The application go to the  Physical Planning Office of the Ministry of Physical Development, Environment & Housing, before being sent to the Prime Minister’s Office for approval. After the application has been granted the draft license is sent to the Office of the Attorney General for approval.

The list below indicates what will need to be submitted with the license application form:

  1. Completed application form.
  2. Full details of the property or land to be purchased.
  3. A value assessment of the property or land.
  4. Statutory declaration.
  5. Four passport size photographs.
  6. Certification of character – report from your local police station on information or lack of information on file.
  7. Certified finger prints – from a police station.
  8. Treasury receipt for payment of the application fee (EC$1,500.00).
  9. Approval in principle, from the Development Control Authority (DCA) in relation to the use of the property or land.
  10. Profession or employment status
  11. Bankers’ reference
  12. Certified copy of passport

Stamp Duty

Stamp duty on property is 2% of the purchase price.

Purchase Deposit

The normal deposit for purchase is 10% of the purchase price.  Please see below the rules surrounding the deposit:

  • If the buyer pulls out the deposit is forfeited.
  • If the vendor pulls out then a sum equal to the deposit must be paid to the buyer. The buyer would receive their original deposit plus the 10% forfeited by the vendor.
  • If the buyer is unable to proceed due to non-granting of the Alien’s Landholding License, then the 10% deposit is refunded. Note that this is a rare occurrence.

Attorney Fees

Local attorney fees range from 3% to 5% of the purchase price.

Start-up Cost

The start-up cost for property purchase is approximately 15% of the property price, made up of, 10% deposit + 2% stamp duty + attorney 3%  fees.

Purchasing Off-Plan

When purchasing properties forming part of a new development, the developing company would put in place an escrow account for owners to make their deposits into, so that the money is totally safe. The development stage payments is typically as follows:
10% deposit
20% On completion of foundations
30% On completion of structure
20% On completion of roof and exterior
20% On completion of building