The Property Banks Buyers Guide to St Lucia
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
appointed 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.