With effect from May 7th 2010 TCI Government significantly reduced transfer tax/duty payable on most real estate transactions in the islands.  In addition to the reduced transaction costs purchasers may now either: (a) pay the amount due in equal installments over a 4 year period, or; (b) take advantage of a futher 10% reduction in duty by paying the entire amount at the front end (i.e. within 30 days of the date of the transfer).

The following table sets out the stamp duty rate applicable on transfers of real estate on the islands of Providenciales, Pine Cay, Parrot Cay, West Caicos, Ambergris Cay:

Analysis of the latest MLS real estate sales figures (as of August 20th 2006) in the Turks & Caicos for the years 2005 and 2006 shows strong increases across the board in 2006, particularly in higher-value transactions.  In broad terms the 2006 figures indicate a percentage increase of more than 70% in gross sales figures and a 44% increase in the gross number of closed sales over the preceding year.  Presumably that margin will increase significantly by the end of the year as we get back into the main tourist season. 

The strength in the Turks & Caicos real estate market is particularly noteworthy in a global environment of increasing interest rates and concerns about slowing real estate sales.  There are too many variables to say with certainty why the Turks & Caicos is bucking the larger trend, but we expect the reasons include:

The Turks & Caicos Government recently approved a reduction in stamp duty (land transfer tax) lasting until June 31st 2008 as follows:

• On transactions of more than US$300,000 on Providenciales and nearby Cays (e.g. Pine Cay, Parrot Cay) from 9.75% to 6%;