How Much is Stamp Duty in the TCI?
One extra cost you need to be prepared for when buying a home in the Turks and Caicos Islands is the stamp duty. Because there are no property taxes in the TCI, the government collects taxes upfront when you make a property purchase. Although the taxes are not small by any means, its likely a good trade off in lieu of yearly taxes assuming you plan to keep the property for a number of years.
These taxes can fluctuate, as we saw after the recession of 2008 (taxes came down to motivate buyers to purchase property). As of today however, this is the amount you would pay based on different dollar amounts:
- $25,000 – $250,000 = 6.5%
- $250,000 – $500,000 = 8.0%
- $500,000 and up = 10.0%
*Please note these rates apply only to Providenciales, Parrot Cay, Pine Cay, Ambergris Cay, Water Cay and West Caicos.
Here are the stamp duties for Grand Turk, Salt Cay, South Caicos, Middle Caicos and North Caicos.
- $25,000-$100,000-5%
- More than $100,000-6.5%
Again, these are an upfront cost so be prepared to pay them at the time of closing.
Stamp Duty on New Construction in the TCI
If you are looking to build a new home in the Turks and Caicos, you actually catch a bit of a break when it comes to stamp duty. The tax is only paid on the lot amount, with the amount varying depending on the levels laid out above. The stamp duty will be due at time of closing on raw land as well, so be prepared for this upfront cost.
We work with a number of very good builders on the island, as well as a number of excellent lawyers who can talk you through the extra costs of purchasing a new home in the TCI.
Stamp Duty on Mortgages
If you are not lucky enough to pay cash for your new home, a TCI mortgage is likely in the cards. On top of the stamp duty you pay on your new property, you will also have to pay stamp on the mortgage amount as well. This tax is 1% of the mortgage amount and again is due at time of closing along with the legal fees and other miscellaneous costs. No one said owning a piece of paradise was going to be cheap.
Talk to us today about financing your new dream home in the Turks and Caicos Islands.
