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%;
• On transactions of less than US$300,000 on Providenciales and nearby Cays from 9.75% to 5%;
• On all transactions on Grand Turk, North Caicos, South Caicos and Salt Cay from 5% to 3%.

This amendment to the Stamp Duty legislation has been talked about for the past few months.  The rumour had the effect of holding up some sales, with offers being made conditional upon it being brought into effect. 

The amendment directly benefits everyone purchasing real estate in the Turks and Caicos before the end of June but it also gives purchasers who are in a position to go to contract before the deadline the option of structuring sales contracts as "extended payment agreements" and paying stamp duty at the front end, thereby locking in the reduced rate.  Several developers selling preconstruction condominiums have latched on to this important point and have made it clear that purchasers wishing to avail of that option will be facilitated.  What this means is that the benefits of this welcome amendment will extend far beyond the June 31st deadline for purchasers who are properly advised.

The last time stamp duty rates were reduced was in 2001 when the Palms was selling preconstruction.  It may well be another 7 years until we see this happen again. If you're considering investing in Turks and Caicos real estate in the near future and are interested in minimizing costs please note that the optimum timeframe for going to contract has now been fixed.  If you've been thinking about making a trip down to look look at real estate, now is the time to book a flight. Talk to your resident attorney or talk to us, but if you do intend to invest in real estate in the Turks & Caicos Islands don't let this window of opportunity close before you have wiggled through it.

Turks & Caicos Property, Ltd.
April 16th 2008