Current trends in real estate
Made up of 40 islands, the Turks and Caicos (TCI) is a British protectorate offering an economically and politically stable territory. It offers 230 miles of pristine beaches and natural vistas which are unrivaled in the Caribbean. In addition, TCI offers a US based economy, a favorable tax investment for investors, and countless offerings for real estate purchase; truly a top destination for luxury Caribbean travel and investment.
Both 2021 and 2022, have been stellar years for real estate in TCI with marked growth and expansion. Sales have been particularly strong for luxury beach houses and high end condos. Serene and unrivaled in natural beauty, these exclusive islands offer luxurious and exclusive properties for wealthy investors. The focus was sustainability as well as the sale of existing properties. New developments are in the planning stages with an emphasis on solar power and renewable energy. The recent signing of the TCI Climate Change Charter which took place on Earth Day this past Friday, April 22nd, was a union of the private and public sectors to take action to protect and safeguard environmental assets.
The first quarter real estate market stats, while 2021 was led by single family home sales, this first quarter of 2022 was led by the sale of existing condominiums, where the sales volume increased by 61.53% with an average of only 162 days on market. The overall market finished up over last years’ Q1 with $140,909,800 in total sales. Essentially the pandemic sparked a run-on of single-family homes in 2021 followed by a run-on of condominiums this past quarter. Now though, with restricted existing inventory in both the condominium and single-family home segments, new development inventory will come to the forefront. This is illustrated by the $307,642,451 in pending (Under Contract) sales and another $262,442,750 in conditional sales. The last two quarters of 2022 are anticipated to increase due to the launch of significant blue chip developments.
New developments are scattered across the islands: from Grace Bay to Long Bay, North Caicos to Turtle Cove. All offer stunning natural vistas, the best in amenities, and a range in residential type for the mid to high end buyer. These properties are available for purchase, investment or rental. Another indicator of sustained and continued growth is Standard & Poor’s affirmation of a country’s sovereign credit rating for long-term bonds, denominated in both domestic and foreign currency, of BBB+. Furthermore, S&P believes the TCI will continue to adhere to prudent financial management and limit borrowing, and that fiscal reserve balances will increase during the next two years. Measures such as this boost investor confidence and contribute to the reputation of the island.
When buying in Turks and Caicos
The islands of Turks and Caicos offer a number of tax incentives to prospective buyers that will be attractive to high net worth individuals.
Specifically
- 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.
Can Foreigners buy property in Turks and Caicos?
Yes, foreigners can buy property in the Turks & Caicos Islands and the Government of the Turks & Caicos Islands welcomes investment from overseas buyers. There are no restrictions on foreign buyers acquiring real estate in the Turks & Caicos Islands and, unlike other destinations in the Caribbean, foreign buyers do not require any kind of license or permit to purchase property. Property can be purchased by an individual or corporation.
Buying Process in Turks and Caicos
Buying property in Turks & Caicos is a relatively simple process, which typically involves the following steps:
- Begin your property search.
- Find your perfect property and make an offer.
- Once accepted, engage an attorney to review the Sales Agreement.
- Upon signing the Sales Agreement, you will need to pay a 10% deposit.
- Pay balance upon closing.
- Pay all required taxes and fees.
Fees and Taxes
Legal Fees
Attorney’s fees typically amount to 1 to 2% of the purchase price.
Stamp Duty
Buyers are responsible for paying stamp duty which varies according to the location and value of the property 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
Make TCI your destination for high end luxury villa rentals or purchase. Browse existing and new developments at your leisure with BE luxury; different amenities and layouts are available all within stunning natural vistas. Start your search for a life in luxury today!
