Legal and Financing Basics for Buying in St Kitts and Nevis

Buying in St Kitts and Nevis follows a familiar OECS pattern: an attorney, an Alien Landholding Licence, a stamp duty bill and a registered title. The details that vary by source are worth sorting into what is firm and what needs a local answer.

The Alien Landholding Licence

Non-nationals buying outside a citizenship-by-investment project need an Alien Landholding Licence, and the fee is 10% of the purchase price. One Nevis agency notes it may instead be based on the value assessed by the Inland Revenue Department, so the assessment matters. Approved CBI purchases are exempt from the licence and its fee, which is covered in the CBI article earlier in this series.

The authority differs by island. A buyer guide for St Kitts points to the Ministry of Justice and Legal Affairs, while a Nevis agency's guide says the application goes to the Nevis Island Administration. Approval commonly takes two to three months.

The sequence of a purchase

Foreign buyers are advised to hire a local attorney before making an offer. The attorney carries out the title search, drafts the purchase and sale agreement and holds the deposit, typically 10%, in escrow. Once the licence is approved the balance is paid and the transfer is executed. Stamp duty must be paid before registration is complete, and the buyer then receives the certificate of title. Registration is quoted at two to eight weeks.

Taxes and fees

Stamp duty runs from 6% to 10% depending on location and value. Who pays is the unclear part. Two local agencies say the seller customarily pays, one guide lists it among buyer costs, and another says the split is negotiated. Write it into the agreement.

Other buyer costs are modest by comparison. Legal fees are typically 1% to 3%, and an Assurance Fund contribution of 0.2% appears in two separate guides. The seller usually pays a sales commission of around 6%.

Annual property tax is the figure with the weakest agreement. One guide gives 0.2% to 0.75% of market value for residential property, another 0.2% to 0.5%, and a third a flat US$800 to US$2,000 a year. The deadline, 30 June each year, comes from one tax guide, with a demand notice normally sent by the end of May. VAT stands at 17%, covered earlier in this series, and there is no personal income tax or capital gains tax.

Financing

Local agencies disagree on mortgages for foreigners. One says foreign nationals can apply. An older advisory guide says local banks are reluctant to lend without collateral in the Federation. Ask lenders directly, and treat a cash purchase as the planning case until a lender confirms otherwise.

Something to track

A Citizenship (Amendment) Bill, which would let people with a Kittitian or Nevisian grandparent register as citizens and buy without the licence fee, has been introduced in Parliament. It is proposed legislation, not current law, and its progress through Parliament is worth following for anyone who might qualify.