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Laws and Regulations
When Buying Property in St Lucia
Alien's Landholding License - General Information
The property purchasing procedure in St Lucia is similar
to that in the UK, with the exception of the Alien’s Landholding
License. Foreigners wishing to purchase land in St Lucia must
first acquire an Alien's Landholding License. Laws were recently
changed in St Lucia to make this process quicker and more flexible.
Please note the following:
- A local lawyer must register the licence.
- It is a permanent licence, which does not require renewal.
- The licence is granted for a specific property or plot of
land and is not transferable.
- There is a non-refundable licence application 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.
- 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 Licence
The application is vetted by 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 licence application form:
- Completed application form.
- Full details of the property or land to be purchased.
- A value assessment of the property or land.
- Statutory declaration.
- Four passport size photographs.
- Certification of character - report from your local police
station on information or lack of information on file.
- Certified finger prints - from a police station.
- Treasury receipt for payment of the application fee (EC$1,500.00).
- Approval in principle, from the Development Control Authority
(DCA) in relation to the use of the property or land.
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.
To prevent gazumping, a forfeiture clause is introduced into all
purchasing contracts as follows:
- 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.
Solicitor Fees
Local solicitor 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 +
3% solicitor 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
Vendor's Tax
When selling property in St Lucia, vendor's tax needs to be
paid at a flat rate of 10% for non-citizens. If the property
is owned by a local company and the property sale is effected
through a share transfer then 2% is payable instead of the 10%
vendor's tax,
St Lucian citizens pay vendors tax by the following breakdown:
Nothing on the first EC$50,000.00
2.5% on the next EC$25,000.00
3.5% on the next EC$75,000.00
5% on the balance
Citizenship
You can avoid the Alien's Landholding License by becoming a citizen
of St Lucia. If you are not resident in St Lucia you can qualify
for citizenship if you fit into one of the following categories:
- You or your parents were born in St Lucia.
- You are married to a St Lucian citizen.
If you don't fit into one of the above categories, owing
property on the Island is one of the main qualifications
when applying for citizenship.
For further details on any of the above, please contact your appointted
St Lucian lawyer.
Visit our home-page
for quality properties (land and houses) for sale in St Lucia.
Exemption From Property Tax
The Land and House Tax Act was amendment in parliament on the
12th Oct 2006 to be effective 1st April 2006. Exemption from property
tax is granted where an owner occupied residential property, the
owner of which has attained the age of sixty years or more and
who uses the residential property exclusively for providing accommodation
for himself or herself and members of his or her family.
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