TPR Buyers Guide

What is Stamp Duty?

Although there are no property taxes or other direct taxes in the Turks and Caicos Islands, a one-time Stamp Duty is payable on most real estate transactions (calculated on sale price, less furnishings and fixtures – where applicable), and is a prerequisite to having your name entered on the Register as the new proprietor. Generally, the purchaser will be liable for the payment of stamp duties and this should be factored into cost calculations. Stamp Duty is calculated as a percentage of the "value" of the property transferred as opposed to the actual price paid. In other words, you will typically pay Stamp Duty calculated on the purchase price. However, the Registrar of Lands has the right to refer a transfer to the Land Valuations Officer for a determination of the value. If this assessment is greater than the price paid, Stamp Duty will be calculated on the higher amount.

There is an equivalent duty payable upon the transfers of shares in corporations owning real estate in the Turks and Caicos Islands , where a change of beneficial ownership is involved.

As an incentive to encourage inward investment, Government charges a lower rate of Stamp Duty on transfers of property of different values and on some of the less developed islands. For the bargain hunter, property prices on Grand Turk, Salt Cay, South Caicos, Middle Caicos and North Caicos , represent a significant saving.

It is also worth noting the following points:

• An additional Stamp Duty of 1% is levied against the amount secured for a mortgage, and is payable upon registration
• If a lease is registered with the Land Registry Office, Stamp duty is will vary based upon the length of the lease and the average annual rental.