Why Own in TCI
The Turks & Caicos Islands offers a unique combination of some of the world’s most beautiful waters, a diverse and intimate group of islands and cays, a historically low tax environment, high quality properties and wonderful accessibility from the United States and Canada, as well as one-stop flights from London. An inviting landscape and inviting people define these islands.
Investment & Lifestyle Benefits
• There are no restrictions on foreign property ownership.
• Title can be held personally or in a local Corporation or Trust.
• There is no imposed requirement to develop land within a stipulated time. Undeveloped land can be held indefinitely for future use or investment.
• A Permanent Residency Certificate can be qualified for with a Real Estate Investment under certain parameters.
• The Turks & Caicos Islands are a British Overseas Territory. This status ensures a stable political environment and trusted legal system.
• The Turks & Caicos Islands Government guarantees (fee simple) Absolute Freehold Title by way of a Torrens Land Registration System. Title Insurance is not required.
• The Turks & Caicos Islands have a modern land registry system, making transfer of title simple and accurate.
• A Government Planning and Development Authority oversees all building codes and development plans to ensure the highest standards of land use and construction are maintained.
• The Turks & Caicos public and private sectors have developed an efficient infrastructure including ports, international airport, road systems, schools and utilities.
• Reliable communication facilities including land based and cellular services, high speed and wireless internet.
• The United States dollar is the primary currency.
• Easy commute from major hubs in the US and Canada as well as London, England.
• No Income Taxes on revenue generated from property.
• No Capital Gains Tax on property transfers.
• No Estate or Inheritance Taxes.
• No Corporate Taxes or Exchange Controls.
• Indirect taxation comprises customs duties, stamp duty on certain transactions, and departure tax.
• A one-time Stamp Duty fee is payable to the TCI Government on the purchase of your property.
Purchasing Process
Buying real estate in the Turks & Caicos Islands is a simple and easy process. There are no restrictions on property ownership by foreign individuals and the title can be held personally or in a local Corporation or Trust or an overseas Trust provided the Trustee is an individual.
Once a property is identified by a Buyer, price and basic terms are agreed upon by way of a preliminary agreement (which temporarily reserves the property) between the parties. Then, the Seller’s attorney issues a formal Purchase and Sales Agreement (PSA) for review by the TCI attorney appointed by the Buyer and a reservation and due diligence period commences. A 10% deposit is held in escrow/trust, by the Buyer’s Attorney, pending exchange of the PSA, at which point the deposit is paid to the Seller’s Attorney and is non-refundable and the contract is often unconditional pending closing. If there are any conditions attached to the agreed offer most are generally satisfied or waived prior to signing of the contract.
Buyer Due Diligence prior to purchasing is an important part of the real estate process and assistance can be maintained by your Real Estate Professional and/or your Attorney.
Upon Closing the transfer documents are handed over to the Buyer’s Attorney in exchange for the balance of the purchase price. Original signatures are required, and signing must be witnessed and signed by a Notary Public with his /her stamp affixed.
The Buyer’s Attorney then lodges the transfer documents with the TCI Government Land Registry Department. The Land Register strikes out the name of the Seller on the title certificate and inserts the name of the Buyer as the new owner of the property giving him or her registered title to the property. At the time of registration a one-time stamp duty to the TCI Government will be payable by the new owner of the property. Stamp duty is a one-time fee that is payable on all real estate transactions varying from 5% to 10% dependent on the purchase price and location of the property.
A British Overseas Territory status ensures an accountable legal system with absolute title guaranteed by the Crown. All land ownership information on the Turks and Caicos Islands is held by the TCI Government 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 gives confidence to potential investors.
Attorney Fees are the only other closing costs and are typically 1 – 1.5 % of the purchase price. Sellers and Buyers are each represented by local legal TCI licensed attorneys.
Resort Condominium & Managed Villa Ownership
Introduction
Ownership at one of the resort condominium properties on the shores of Providenciales offer owners different options in terms of services, amenities, rental management programs and personal use.
Resort Management
Many properties offer proprietary management programs that allow owners to defray costs of ownership through the rental of their properties when they are not in residence.
Owner Stays
In most properties, Owners may provide their dates to the Owner’s Liaison and Management contact in advance of their visit, preferably 90 days ahead of time to guarantee availability in most cases. For the Christmas and New Year’s period (festive period), at least 6 months of advance notice is required due to high demand. However, the management teams will typically make best efforts to accommodate short term stay requests by owners when the residence is booked by moving bookings to alternate suites, when available.
Owners have a dedicated point of contact in the Owner’s Liaison with respect to all of their specific needs pre and post arrival. The hotel teams provide a personalized level of service to owners.
Rental Program
By participating in the rental program, owners benefit from the given resort’s leadership in the market and success and track record in generating healthy average daily rates and occupancy rates. Owners, in most cases, have flexibility of their own use while offsetting the costs of ownership through rental in their absence. Due to the design of the residences and the hotel’s management, ownership is an enjoyable and hassle-free experience. The track record of residences in the rental program illustrates the ability of the resort to generate revenue year after year, and to offset related expenses. Please ask our real estate sales team for information for individual listed properties.
Management Program and Revenue Split
Owners, in most cases, will split the adjusted gross room revenue 50/50 with management. This split is standard at most leading resort and managed condo properties.
The split occurs after customary sales fees (travel agency, reservations, credit card fees and hospitality fees are deducted). This is standard business practice in luxury properties operating in the Turks & Caicos Islands. Owners receive monthly expense and income statements detailing the rental and expense activity on their residence.
Ownership Expenses
• Strata fees are applicable to all units on a per sq. ft. total basis or entitlement basis. H.O.A. (Home Owner’s Association) fees are levied on an entitlement basis, often per lot, per sq. ft. per property and/or per bedroom count depending on the H.O.A.
• Strata and insurance charges:$ per sq. ft. per annum rates (inclusive of strata insurance) range between approximately $14 per sq. ft. per annum to $22 per sq. ft. per annum, depending on the properties. For example, a 2,800 sq. ft. three-bedroom condo incurs circa$44,800 per annum in strata fees inclusive of strata insurance at $20 per sq. ft.
• Strata fees are subject to change annually based on insurance, labor, or other variable costs, but remain relatively constant over time. Also included in these charges are on-site security, landscaping services, concierge services, use of resort facilities (where applicable) including fitness, pools, kids areas, full-time maintenance and engineering staff and services, garbage removal, pest control, beach set up, complimentary bicycles and services. A full copy of the budget can be provided upon request where available as part of the due diligence process.
• Utilities: each residence is typically individually metered and charged for utilities including power, water and telephone/high speed internet/TV, and vary based on consumption.
• Owners have signing privileges throughout the resort and are charged separately for any a la carte hotel services such as spa treatments, housekeeping services, in-room dining, etc.
• Typically, some form of owner discount is available for food and beverage, spa and boutique services on site, where available.
• Personal property insurance for contents is required for participation in the rental program, and recommended.
• Housekeeping and linen services will be charged to owners on an a la carte basis per their request at a nominal charge during their stay. When units are rented to guests, Management covers the cost of housekeeping services through their 50% split (or 40% where applicable).
Strata and H. 0. A. Corporations
Properties which are part of a Strata Corporation or H.O.A. (Home Owner’s Association) are assigned a Strata Plan number and managed by an executive committee. This body manages the property and attends to the insurance, general maintenance, manages by-laws adherence, sets the rates and fees, and typically maintains a Strata Reserve Fund to cover larger maintenance projects.
When purchasing a property that is part of a Strata Corporation, all owners are bound to comply with the rules and regulations contained in the documents and all future changes approved at a later date. Strata Fees vary from property to property as do the items covered. The Strata and By-Laws document should be carefully examined prior to purchasing.
Link to Digital Flipbook of our full Buyer’s Guide
About Turks & Caicos Sotheby’s International Realty
Turks & Caicos Sotheby’s International Realty (TCSIR) is the premier luxury real estate brokerage firm in Turks & Caicos. Boasting a profound track record and significant foothold in all market segments, particularly new development and trophy properties, TCSIR is the go-to resource for developers, investors, home-buyers and sellers in this highly sought-after destination. With strong leadership backed by the world’s greatest international luxury real estate brand, and a strong team of agents, TCSIR is influential in both the local community as well as the greater real estate industry worldwide. The firm’s signature office is ideally located in uptown Grace Bay with satellite offices at Grace Bay Club, The Palms, Point Grace and South Bank.
For more information, please visit www.turksandcaicossir.com.
Turks & Caicos Sotheby’s International Realty, Venture House, Grace Bay Road, Providenciales | info@tcsothebysrealty.com | 1.649.946.4474
