There are various reasons one may choose to invest in the Turks and Caicos Islands, with one of the most lucrative investment opportunities being the property market. In this article, we’ll be outlining what a Turks and Caicos real estate investment entails.
There are no restrictions on foreign property ownership in Turks and Caicos
The first point to note about investing in Turks and Caicos real estate is that there are no restrictions on foreign property ownership like there are in other territories. This means that property in the TCI can be purchased without the buyer having any right to reside there.
However, by investing enough capital in real estate on the islands, the property owner can also earn a Permanent Residency Certificate, granting them the right to live in their new property indefinitely.
The real estate market is strong and growing
In order to have confidence in their real estate investment, potential buyers need to understand the market that they are entering. The TCI real estate market is strong, with a wide selection of properties available, including land, homes and condos across the islands.
Interest in relocating to the Caribbean or buying a second home also saw an increase as a result of the COVID-19 pandemic, with many tempted by the low infection and transmission rates, as well as the allure of being isolated somewhere scenic and secluded should lockdown restrictions be reintroduced.
You can buy property individually or on behalf of a company or trust
Previously, buying property through a company was not as desirable as it is today, due to fewer mortgage options and more restrictive terms. Today, however, investing in real estate through a company is seen as a favourable alternative, with the potential of significant savings in terms of taxation. For more details on this, you can view our previous blog on purchasing property through a limited company.
When you buy land, you are not required to develop it within a particular time frame
In some jurisdictions, the purchase of land also comes with the proviso that it must be developed within a certain timeframe. However, some potential buyers may discover well-priced land before they have tangible plans for its development. This need not be a concern when investing in the Turks and Caicos Islands, as there is no specific timeframe for development and desirable land can be purchased without pressure to begin the work.
The Land Registration System is backed by the government and is a simple and secure system
All land ownership information on the TCI is held by the Turks and Caicos Islands Land Registry. This information also indicates the boundaries of each individually owned piece of land, making ownership an issue of certainty, not debate. Having land registered and backed by the government should give confidence to potential investors.
Investing in property in the Turks and Caicos Islands can be especially lucrative for those looking to reduce their tax liability. The Turks and Caicos Islands have no income tax, capital gains tax, estate/inheritance tax, or corporate tax associated with real estate investment. All of this can amount to significant savings, especially when residing on the islands or transferring the property.
The main additional payment you will need to make, besides the cost of the real estate, is Stamp Duty – a one-time Stamp Duty charge is payable to the government when you purchase real estate.
Purchasing Turks and Caicos real estate can be an incredibly beneficial investment, particularly for those looking to gain residency, retire to the islands, or simply reduce their tax liability and increase profits. For further advice on investing in the Turks and Caicos Islands, our Real Estate team will be happy to help.