The buying process in The St. Lucia
The buying process is detailed below but first of all, may we bring the following to your attention...
We have put together a special package for our property buyers which is described in our “St. Lucia Property Buying Report”.
“St. Lucia Property Buying Report”.
WE’D VERY STRONGLY URGE YOU TO READ THAT REPORT NOW because we’re offering something many times more beneficial than the standard property buying process described below.
What follows is the process for non-nationals – for nationals it’s even simpler than this already straightforward process.
Putting the wheels in motion
The key thing is to have a solicitor who understands the local system. We can introduce you to a practice if you need some assistance with this.
Once you decide to go ahead, a reservation deposit is paid. With many vendors this is around 5% to 10% of the purchase price.
However for all properties purchased on the Marquis Estate, the reservation fee is just £1,000 – irrespective of the purchase price.
The reservation fee removes the property from the market and holds it in your name whilst your solicitor carries out the formalities.
Landholding license
One of your solicitor's first tasks is to review the contract for items that need to be brought to your attention. Once you’re happy to proceed, the next job is to apply for an Alien Landholding License. The Alien Landholding License is granted to a specific owner to buy a specific property. It’s permanent, not transferable and does not need to be renewed.
To obtain the licence, your solicitor will need various pieces of information from you that shows you are, shall we say, “of good standing”. Unless you are a bankrupt criminal (!) this is pretty much a formality.
Once it is granted, the Licence is registered at the St Lucia Land Registry. An “Instrument No.“ is allocated and this number along with the details of the Licence are put onto the Deed of Sale.
The fees associated with the Alien Landholding License are detailed below.
Checks, searches and timescale
As in other countries, the solicitor will perform a variety of checks and searches in readiness for signing of contracts and completion.
The actual timescale from initial deposit to completion will be agreed between buyer and seller – there’s no set duration. However, the entire process may take up to three or four months – in part, due to the length of time taken to get the Alien Landholding Licence. Of course, it could be much longer if you are buying off-plan.
Amongst other things, your purchase contract will spell out exactly what amounts are paid and when. In particular with off-plan properties, there will frequently be a phased payment plan, with monies due at various stages of the construction process.
Make sure you are absolutely clear about when these payments are due because it will be down to you to make sure the payments are made on time.
We can help you avoid foreign exchange commissions and take advantage of some special services to ensure you get the best rates. Don’t put this off – you need to plan for this in advance if you want to avoid penalties and save yourself a tidy sum of money.
Fees and taxes – and their timing
Legal
Solicitor’s conveyancing charge – typically 3% to 5% of the purchase value. Some solicitors will want all or some of their fee paid in advance. Often there will be two instalments.
Alien Landholders License – one fee on application - US$ 1,852 (EC$5,000) and a second charge to process the application - US$ 556 (EC$1,500).
(These two fees reflect a plot size of up to one acre – larger plots attract larger fees. Most residential properties are not going to have larger than one acre plots.)
Stamp duty to register the Deed of Sale - 2% of the purchase price. Due at registration time.
Annual property tax
Generally the property tax for home owners is 5% p.a. of the rental value of the property.
Vendor’s tax - and buying through a company
You may want to discuss with your solicitor the merits of registering an Alien Company. This can buy the property on your behalf and could mitigate your future tax liability when you come to sell. As a non-national, at the time you sell, you would be liable to ten percent Vendor’s Tax.
Conversely, should your company sell the property, it would be liable to pay only half a percent tax. Of course, there’s a company set up fee – typically, around 3,500 EC$ (East Caribbean Dollars). The EC dollar is currently linked to the US dollar at the rate of 1 US dollar to 2.7 EC dollars – so your set up fee would be around US$1,296. There could be big savings here.
(Although many people refer to East Caribbean Dollars as ECD or EC$, the actual foreign currency symbol is XCD.)
This method of buying could be advantageous but you should seek professional advice as everyone’s circumstances are different.
If you’d like to discuss this with our developer’s investment consultant just let us know.
Need to know more?
Try the links over in the right hand margin or explore Country Info or Buyer's Guide in the main menu just above the text at the top of the page.
Or you could call or email. Phones are manned 24 hours, seven days a week. Contact information.
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