St Vincent & The Grenadines Island Taxes

1. Taxes, Fees & Costs of Ownership

A. Acquisition Costs

Stamp Duty

Stamp duty in SVG is levied on property transfers and is one of the primary acquisition costs for all buyers, including non-citizens. The applicable stamp duty rate should be confirmed with your attorney before any purchase commitment — the rate may differ for non-citizens versus citizens and may be structured differently for different property values or types. As a general reference for budgeting, stamp duty for non-citizen buyers in SVG has typically been in the range of 5%–10% of the purchase price — confirm the precise current rate with your attorney, as it is a material closing cost.

Alien Landholding Licence Fee

The AHL Licence carries a government fee, typically calculated as a percentage of the purchase price. This fee is a significant acquisition cost that must be included in the full purchase cost model from the outset. Confirm the current AHL Licence fee rate with your attorney — it is one of the most material cost items in an SVG non-citizen property acquisition and varies by property value.

Legal Fees

Conveyancing attorney fees in SVG are typically charged as a percentage of the purchase price — commonly in the range of 1%–2% for a standard residential transaction. For complex transactions (Mustique share transfers, Canouan development purchases, or transactions involving corporate holding structures), fees may be higher. Obtain a clear, itemised fee estimate from your attorney at the outset.

Mustique Company Costs

For Mustique purchases specifically, additional costs may be applicable in connection with the Mustique Company share transfer — including any Company-imposed transfer fees, administrative costs, and the cost of obtaining the Company's approval. These costs are specific to Mustique and must be confirmed directly with the Mustique Company before any purchase commitment. Do not assume that only the standard SVG acquisition costs apply to a Mustique transaction.

Total Acquisition Cost Estimate

For a standard non-citizen open-market SVG purchase, total acquisition costs — stamp duty, AHL Licence fee, legal fees, and incidentals — are typically in the range of 10%–15% of the purchase price. For Mustique purchases, additional Mustique Company costs apply. Model all costs with your attorney and (for Mustique) the Mustique Company before committing to any purchase.

B. Annual Ownership Costs

No Income Tax

SVG levies no income tax on individuals. Rental income from SVG property is not subject to local income tax. This is one of the federation's most significant fiscal advantages for property owners — rental returns during the holding period accumulate without local income tax erosion. Non-resident owners must assess their home-country income tax obligations on SVG rental income — the absence of SVG taxation does not override home-country obligations.

No Capital Gains Tax

There is no capital gains tax in SVG on the disposal of real property. All appreciation accrues to the owner free of SVG CGT upon sale. Non-resident owners must assess home-country CGT obligations on gains from SVG property disposals.

No Inheritance Tax

SVG levies no inheritance tax or estate duty on real property. Property passes between generations without an SVG inheritance tax charge. Combined with no income tax and no CGT, SVG offers one of the most complete tax-neutral property holding frameworks in the Eastern Caribbean.

Property Tax

SVG levies an annual property tax on real estate, assessed on the value of the property. Property tax rates are modest by international standards. Confirm the current property tax assessment and annual liability for any specific property with your attorney before purchase. Ensure all property taxes are current at the time of purchase.

Mustique Company Annual Fees

For Mustique villa owners, the annual Mustique Company fees are the most significant ongoing ownership cost — reflecting the actual cost of maintaining the island's private infrastructure, services, and management to the standard that the community requires. These fees are substantial, vary by villa size and classification, and must be obtained in full from the Mustique Company and budgeted from the outset. They are fundamentally different from a standard HOA fee — they fund an entire island's infrastructure including electricity generation, water supply, road and beach maintenance, healthcare, airstrip operation, and security.

Insurance

Hurricane and windstorm insurance is essential across the federation. Properties in the Grenadines are exposed to the Atlantic hurricane belt, and windstorm coverage at adequate replacement values is non-negotiable. For Mustique villas, the Mustique Company coordinates certain aspects of property insurance — confirm what is covered through the Company's arrangements and what requires separate individual policy. For all other islands, arrange comprehensive buildings, contents, and windstorm insurance through an insurer with experience in remote Caribbean properties.

Property Management

For properties on islands where independent management is possible (Bequia, Union Island, southern Grenadines), the cost of a local property manager or caretaker is an ongoing ownership expense — essential for any owner who is not in residence year-round. On Mustique, the Mustique Company provides property management as part of its service infrastructure — this is included within (or supplementary to) the annual fee structure. On Canouan, the Canouan Estate management company provides management services for resort residences.