Purchase of Saint Lucia real estate is a good investment. St. Lucia is known for its high level of protection of foreign investments. The real estate market in St. Lucia is open, which means both citizens and foreigners can acquire real estate here.
Starting in 2016, St. Lucia offered citizenship through an investment program. You can invest in certain real estate developments and obtain citizenship.
This guide explains everything you need to know about St. Lucia real estate investment: market trends, taxes involved, and the step-by-step purchase process of property.
Market Overview: St. Lucia Real Estate for Investment
Several areas in St. Lucia are in high demand, catering to buyers looking for beachfront villas, resort properties like Green Fig Resort, or quiet residential locations. St. Lucia offers a diverse range of prime residential opportunities for potential investors.
Rodney Bay
Known for its lively atmosphere, Rodney Bay is a hub of activity with modern amenities, restaurants, and the popular Reduit Beach or Bay Beach.
This area is a favorite for those seeking a vibrant and easily accessible location. Here, you might find a luxury 3-bedroom villa or semi-detached villa, a modern townhouse, or a commercial sales opportunity.
The average price for a square foot of land in this area is around USD 2,500.
Prices for real estate in this area start from USD 580,000.
Cap Estate
Cap Estate is based in the northern tip of the island and is known for high-end real estate. Many properties boast views of the Caribbean Sea or the Atlantic Ocean, making it an ideal location for an ocean view property or a several-bedroom luxury villa.
The parcels of residential land in Cap Estate have a high development potential.
The average price for a square foot of land in this area is around USD 3,500.
Prices for real estate in Cap Estate start from USD 800,000.
Marigot Bay
Marigot Bay, often called one of the most beautiful bays in the Caribbean, with its calm waters and panoramic views, is perfect for boating. This area is located on the western coast of the island and is famous for Marigot Bay Marina.
This area offers a lot of hot properties with elevated prices. The final price depends on the number of bedrooms, bathrooms, and other facilities included in the property.
The average price for a square foot of land varies between USD 2,000 and USD 6,000.
Prices for real estate in Cap Estate start from USD 700,000.
Gros Islet
Beyond Rodney Bay, Gros Islet offers a more local experience, with a mix of residential homes and commercial properties. You can find here everything for sale—villas, apartments, private homes, etc.
The average price for a square foot of land in this area is around USD 3,000.
Prices for real estate in this area start at USD 600,000.
Vieux Fort
Vieux Fort is presenting opportunities for those considering long-term investments. It is also a prime location for those interested in a guest estate villa or house. This area gives access to the most beautiful beaches on the island, like Sandy Dollar, Belle Vue, and La Luz.
The average price per square foot of land varies between USD 3,000 and USD 5,500.
Prices for real estate in Cap Estate start from USD 600,000.
Benefits of Investment in St. Lucia Real Estate
St. Lucia, perched in the Caribbean Sea, offers natural beauty and a growing economy. This place has emerged as a prime investment destination for many high-net-worth individuals and business owners.
Tax Benefits
Saint Lucia does not have inheritance tax, which makes the transfer of the purchased property to future generations less costly.
The St. Lucia homes have a strong potential to grow in value year by year. Luckily, Saint Lucia does not impose a wealth tax, which means that you won’t be charged for owning expensive assets.
Tourist Paradise
In 2024 the influx of foreign travelers to the island has increased compared to 2023. More and more digital nomads start considering Saint Lucia for permanent relocation.
Therefore, the demand for short- and long-term residential accommodations is growing. If you do not plan to live on the island the whole year round, renting out the property could be a solution to generate some income.
High Level of Investment Protection
Buying property in St. Lucia is a safe investment. The island is a member of numerous international and regional agreements aimed at protecting foreign investments.
The rule of law guarantees the absolute protection of ownership, as well as the security of the investor’s rights.
Path to Citizenship
Investment in certain immovable property on the island can secure you a citizenship of St. Lucia. The island has offered the citizenship by investment program since 2016.
You can apply for citizenship through investment via purchasing certain approved units in resorts, homes, real estate units in apartment complexes, etc.
The minimum investment amount should be at least USD 300,000.
Open Market
The St. Lucian government actively encourages foreign investment, a stance reflected in its policies. There are no restrictions on foreign nationals acquiring property, making it an open market.
Costs Involved in Holding and Buying Property in St. Lucia
Transfer Tax
Every sale-purchase of St. Lucia real estate is subject to transfer tax (stamp duty).
The tax rate depends on the nationality of the parties to the transaction, as well as the property’s value. The amount of the tax is split between the seller and the vendor as follows:
Purchaser: 2.5% of the property’s market value
Foreign Vendor—10% of the property’s market value
Local Vendor—2.5% to 5% of the property’s market value.
Aliens Landholding License
A foreign company or individual cannot acquire, purchase, or lease land in St. Lucia without applying for the Aliens Landholding License (‘the License’).
Investors who acquire property via the Citizenship by Investment Program are exempted, however, from getting such a license.
The process of getting the license consists of two important stages. The first stage is to apply for a Certificate of Eligibility. Without it, you cannot apply further for the license. The second stage is to apply for the license itself.
The license fee depends on the type of ownership and the size of the land plot. Thus the license fee could vary from USD 3,000 to USD 25,000.
Property Tax
Every owner of St. Lucia real estate, despite their tax residency or citizenship, should pay annual property tax.
The property tax rate is fixed.
For residential property—0.25% of the property’s market value
For commercial property—0.4% of the property’s market value
Individual Income Tax
If you plan to use purchased property for vacation rentals, the generated income will be subject to mandatory individual income tax.
This tax applies to both residents and non-residents of St. Lucia, provided the income derives or originates in St. Lucia.
The income tax rate is progressive and varies between 15% and 30%.
Legal and Real Estate Agent Fees
The Saint Lucia Bar Association establishes every two years the maximum legal fees attorneys can charge their clients. The legal fees involving transactions like the sale-purchase of real estate cannot be more than 2% of the property’s price.
The real estate agent commission is being paid by the vendor and can be up to 8% of the purchase price.
Maintenance Costs
If you plan to lease out your property for the short or long term, additional maintenance costs should be considered. Usually, real estate agencies can charge up to 50% of the income generated by the accommodation.
Process of Buying Property in St. Lucia
The process of acquisition of property in Saint Lucia could be straightforward if you are aware of all the legal pitfalls of this process.
- St. Lucia has an open real estate market. Both citizens and foreigners can purchase their dream home.
- The acquisition of the property through the Citizenship by Investment Program differs from the open market purchase.
This chapter explains all the steps needed to purchase real estate in St. Lucia. We will discuss separately citizenship by investment via real estate in the next chapter below.
Choose Your Property
The very first step is to select the property. You can make selections remotely or come to the island in person.
Think about putting the deposit in advance. The hot properties, especially those with sea views, are in big demand. Therefore, a deposit is a good way to secure your interest. Usually the deposit’s amount does not exceed 10% of the purchase price.
Aliens Landholding License
Every foreigner and foreign company is required to obtain the license prior to the purchase of the real estate. Failure to obtain the license is a serious offense.
The application process usually takes up to 3 months.
The citizens of CARICOM do not need to apply for the said license. The same applies for investors purchasing the real estate through the Citizenship by Investment Program.
Paying Taxes
The most important stage of the St. Lucia real estate purchase process is to make sure that all taxes are paid correctly, including the following:
- the vendor does not have a debt property tax from previous years; and
- The transfer tax (stamp duty) is paid in full by both parties of the transaction.
Finalize the Sale
Once all conditions are met, the final payment for the purchase price should be initiated.
The vendor and the buyer should sign the Deed of Sale. Once this is done, attorneys will submit the said Deed of Sale for further registration of the title, which could take a few weeks.
Citizenship by Investment through St. Lucia Real Estate Investment
St. Lucia offers a Citizenship by Investment Program, with real estate investment being a viable option.
General Requirements
In order to be qualified for the CIP program, an investor should be able to meet the following criteria:
- Investment should be made into approved real estate projects only (e.g., St. Lucia homes, real estate objects, or hotels);
- Minimum investment of USD 300,000;
- Be at least 18 years of age (main investor only);
- has a clean criminal record; and
- Has a legal proof of funds to make an investment.
Benefits of Saint Lucia Citizenship
Saint Lucia citizenship offers a lot of advantages to its passport holders, including the following:
- Visa-free or visa-on-arrival access to over 150+ countries;
- no restrictions on dual citizenship;
- no wealth tax, inheritance tax, or capital gains tax on worldwide income or assets;
- Secure Plan B for investors and their close family members like spouses, children, and parents.
Application Process
The average duration of the application process could take up to 6 months. This is relatively faster compared to other citizenship programs like Grenada or St. Kitts and Nevis.
1. Choosing Property
First, you need to select a property for the investment. This could be done on your own or with the help of a real estate sales consultancy firm.
Once the choice is made, the preliminary sale-purchase agreement should be signed.
2. Collection of Documents
After the real estate project is selected, it is time to start collecting documents needed for the citizenship by investment.
This stage could take from a few weeks to a few months. Everything depends on how fast certain documents can be provided. For example, in one country the issuance of a criminal record certificate can take a few days, while in another country the process takes a few weeks.
The documents should be submitted to the Citizenship Unit by the authorized local agent or their sub-agents only.
3. Review of Submitted Documents
The Citizenship Unit has 90 days to review all the submitted documents.
Be ready to participate in a mandatory online interview as well as a part of the application process.
Once the review is completed, the Citizenship Unit adopts either of the following decisions:
- approves in principle;
- deny application; or
- Delay for cause.
4. Meeting Investment Requirements
If the approval in principle is granted, an investor has 30 days to make the investment, sign the final sale-purchase agreement, and pay the additional governmental approval fee.
5. Citizenship Certificate
Once all the required payments are settled, an investor is invited to take an oath. The oath ceremony takes place remotely, and there is no need to come to the island in person.
After that, the Citizenship Certificate will be issued. Once the passport is ready, it will be mailed to you at any location of your choice.
Conclusion
The St. Lucia real estate market offers a variety of safe investment opportunities. Low property taxes as well as the absence of wealth or inheritance tax make this island an appealing investment hub.
Local laws offer a high degree of legal protection of ownership. A stable economic and political climate on the island ensures the rule of law and high investment protection.
The Citizenship by Investment Program in St. Lucia offers high-net-worth individuals a fast way to apply for citizenship in exchange for real estate purchase. The application process takes around 6 months.
