- 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:
- A notarized copy of the picture page of your passport.
- A notarized copy of your driver’s licence.
- 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).
- 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).
- 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 – 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.
Properties in the Turks and Caicos Islands which are part of a Strata are assigned a Strata Plan number and managed by an executive committee. This body manages the property and attends to the insurance, general maintenance, creates by-laws, sets the rates and fees, and creates a Strata Reserve Fund to cover larger maintenance projects.
When purchasing a property that is part of a Strata all owners are bound to comply with the rules and regulations contained in the documents and all future changes approved at a later date.
Strata fees vary from property to property as do the items covered. The Strata Plan document should be carefully examined prior to purchasing.
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