Richard Way, editor of the Overseas Guides Company, this month looks at buying property on St Lucia, St Kitts & Nevis and the Bahamas

St Lucia

Over the centuries, control of lush St Lucia switched between Britain and France. Today it is an independent state of the Commonwealth of Nations and has a legal system based on British common law. English is the official language.

The St Lucian Government is especially eager to attract more foreign buyers to the island – BA flies there daily direct from Gatwick. There’s talk of an economic citizenship programme being introduced, which would give property investors full residency status if they invest around $350K or more. Some developments, including The Landings and Sugar Beach, already offer perks, such as 10-year exemptions from income tax. There are four main steps to buying on St Lucia. Once you have agreed to buy a property, the first thing your lawyer must do is organise the preparation and signing of the Agreement for Sale. After that, you will need to apply for an Alien landholding licence, a document required by all non-citizens wanting to own in St Lucia. The preparation and signing of the Deed of Sale is the next step and once this is done, the registration of the Deed of Sale can be done.

Legal fees for conveyancing are worked out according to the Legal Practitioners’ Tariff as issued by the Bar Association of St Lucia and are calculated on a sliding scale of a percentage of the purchase price.

Historically, most British people have bought in the north of the island, around Rodney Bay and the island’s golf course. Villas or apartments in gated communities, which can be locked up and left when the owners return to the UK, are popular, although watch out for hefty management fees. That said, anyone looking for a classical plantation-style villa away from a resort won’t be disappointed either.

Barbados

Still the favourite Caribbean destination of British holidaymakers, Barbados’s reputation as a celebrity hang-out means property prices can be extremely high.
Most property-buyers on the island want to be on, or near, the west coast, with its typical palm-fringed beaches and interesting mix of multi-milion-dollar houses and traditional wooden chattel houses. It’s here, in the parish of St James that you can find five-star luxury and where celebs mingle.  

On the south coast, especially in the Christ Church parish, things are a lot more affordable and geared towards a younger crowd, while the protected east coast, with its wild Atlantic beaches, has little to offer property-hunters although some development is taking shape in the south-east.

There are no restrictions on non-residents or non-citizens buying property in Barbados but often, to   help reduce costs and simplify the process when selling, international buyers will purchase property through a company that has been incorporated outside but registered to do business within Barbados. Otherwise, buyers must obtain permission to purchase property from the Barbados Exchange Control Authority, regardless of whether they are a Barbadian citizen or not - this is a standard procedure under the Exchange Control Act Buyers.

Legal fees are around 1.5-2 per cent in Barbados and the vendor pays any sales commissions and survey costs. Buyers consider annual community fees when choosing a resort as these can be high - £3,000-plus not unusual on a quality resort on the west coast.

St Kitts and Nevis

Limited air access has kept St Kitts and Nevis, two islands separated by a two-mile strip of sea, tantalisingly unspoilt and more affordable than other Caribbean destinations. The latter is especially serene, with just 11,000 residents, but the former, with its international airport, still has a population of just 35,000.

Classed as an independent Commonwealth realm, the islands have a predominatly British past and English is the official language. In recent times the government there has introduced incentives to attract foreign buyers. While non-citizens require an Alien Holding Licence to own property, which costs 10 per cent of the purchase price and takes around four months to obtain, most resorts and new developments are exempt of this rule.

St Kitts and Nevis also offers an Economic Citizenship Programme.  This entitles anyone who invests more than $350,000 to become a citizen,  for a fee of $35,000. Foreigners and eligible family members don’t need to be resident on the island to have dual citizenship and enjoy a tax-free status on foreign income, capital gains, gift, wealth and inheritance tax, as well as the right to work there.

The buying process in St Kitts and Nevis is relatively simple. Legal services generally cost from one to two per cent of the purchase price and transfer taxes are paid by the vendor.

The Bahamas

Part of the British Commonwealth,   the Bahamas consists of 16 islands   but those that attract the most attention from British buyers are    New Providence, Grand Bahama, Eleuthera, Exuma and Long Island.

As part of an initiative to attract foreign residents, the Bahamian Government now allows visitors, renters or homeowners to stay in the Bahamas for up to eight months of   the year, provided they can indicate means of financial support for this period and have a return ticket    home. To stay there year-round, foreigners would need to show proof of property and net worth of over $500,000 and purchase a Resident’s Permit, which costs approximately £500. Also, residents of the Bahamas can use their residency status for tax relief from any income made outside of the Bahamas, where there’s no income, capital gains or inheritance tax.

Costs for buying in the Bahamas include half of the stamp duty (between 4 and 12 per cent, depending on the value of the property), legal fees and payment of the permit under the International Persons Landholding Act (if applicable).

Often classed as an over-priced tax haven, in reality the Bahamas has property to suit all budgets. One development geared towards British people is Hideaway Bahamas on  Grand Bahama. It’s a semi-gated beachfront community, and properties available include apartments, villas and beachfront homes, with prices ranging from $170,000 to $950,000. Permanent residents as well as second homeowners are encouraged there.

Look out for the neext issue, in which I will be looking at buying property in Antigua, Grenada, Bermuda and Trinidad & Tobago.

www.OverseasGuidesCompany.com