Understanding Closing Costs For Real Estate Purchases In Turks & Caicos
Are you thinking of buying some property in Turks and Caicos? Would you like to have your own little get-away to stay at any time you feel like it? If you’ve purchased a home in another country, such as the United States or Canada, you’ll find that the process (especially the closing costs for real estate purchases in Turks and Caicos) is very different.
Listed below is a summary of what the closing costs will be when you purchase property in Turks and Caicos:
The Purchase Price
The best part of real estate purchases in Turks and Caicos is that the main closing cost is the agreed upon purchase price. There will be no surprises when you come to the closing and finally get to pick up your keys.
Another great thing involved in purchasing a house here is that there are no capital gains taxes or property taxes in Turks and Caicos. In addition, there are no restrictions on foreigners owning property. They can purchase as much as they can afford. One final exciting fact is that there are no income taxes charged on rental income received from rental properties. Spend as much and generate as much money as you can without being penalized by taxes.
Stamp Duty Fees
Although there are no property taxes, no income taxes, and no capital gains taxes on real estate, there is something called a stamp duty fee. For every property transaction in Turks and Caicos, the new owner must pay a one-time-only fee called a stamp duty. Depending on where the real estate is located, and the transaction amount of the villa, condo, land, or house, rates for stamp duty fees can fluctuate.
Rates for Stamp Duty
Beginning July 1st, 2013, the stamp duty rates for South Caicos, North Caicos, Salt Cay, Middle Caicos, and Grand Turk became as follows:
- For transactions costing in excess of $100,000, the stamp fee is 6.5% of the total cost.
- For transactions between $25,000 and $100,000, the rate is 5%.
Beginning July 1st, 2013, the stamp duty rates for Parrot Cay, Providenciales, Pine Cay, Water Cay, Dellis Cay, East and West Caicos, and Ambergris Cay became as follows:
- Transactions more than $500,000, the stamp duty fee is 10% of the total cost.
- For transactions between $250,00 to $500,000, the fee rate is 8% of the total cost.
- For transactions costing between $25,000 and $250,000, the fee is 6.5% of the cost.
It is important to note that any property purchased for under $25,000 has no stamp duty fee in Turks and Caicos at all.
In addition, when purchasing residential properties, 10% of the purchase price is normally deducted. This amount is allocated toward any furniture or goods staying with the house or condo, etc. The remaining 90% of the purchase price is then charged a stamp duty fee. The stamp duty rate, again, depends upon its location and final price.
In order to facilitate the real estate transaction, buyers will also need the services of a local attorney. Attorney fees are generally between 0.75% and 1% of the final cost of the property.
TINT Turks and Caicos
Our professionals at TINT Turks and Caicos are happy to help you find a property and walk you through the process of purchasing it. Contact us today and get your vacation dream home tomorrow!