Purchase of St Kitts and Nevis Real Estate: Full Guide

Understanding the St. Kitts and Nevis Property Landscape

Key Areas for Property Investment

St. Kitts and Nevis are two islands in the Caribbean that are quite different. St. Kitts, the larger of the two, has a lively feel, with more residential areas and growing tourist spots, such as Frigate Bay.

Nevis is quieter and less developed. It’s popular with those who prefer tranquility. You’ll find luxury homes, beachfront properties, and former plantations, making it perfect for a peaceful lifestyle or an investment.

Frigate Bay

Some areas in St. Kitts and Nevis are particularly attractive to property buyers. Frigate Bay is popular for its beaches, golf courses, and proximity to restaurants and nightlife. The Southeast Peninsula offers stunning views and quiet beaches for those looking for a calmer setting. One can even find an available homesite at sea level.

Pinney’s Beach

This location offers beautiful seaside homes. It is ideal if you want easy access to the water. If you are looking for beachfront and waterfront property, the Oualie Bay or Turtle Beach area is worth considering.

Here you can acquire units in Seasons resort hotels as well as private residences.

Nelson Spring

This area is known to be a luxurious location for beachfront villas and resort estates. The real estate listings are the highest in this particular area of the island.

Bay Roc and Ouje Mango

Beachfront homes often include luxury features like swimming pools or outdoor kitchens. They provide owners and guests with everything they need for a perfect home, enhancing the desired “lifestyle experience.” There are a lot of different locations that may meet your desires, such as Bay Roc and Ouje Mango.

Christophe Harbour

If you are looking for luxury homes, you might consider Christophe Harbour. This area offers many advantages and amenities, which are beneficial for buyers looking for something beyond a standard property.

Property Type of St. Kitts and Nevis Real Estate

There’s a wide range of properties available to suit different tastes and needs. From luxury homes on the beachfront to more affordable homes inland, there’s something for everyone.

Understanding these property types is crucial, particularly when looking for the right home.

Villas vs. Condos

Villas generally offer more privacy and larger living spaces, making them ideal for families or holiday rentals. They often include private pools and gardens. Condos are usually more budget-friendly and can involve less upkeep, as common areas are shared by residents.

You might be able to find something small like a studio apartment or something large that has many bedrooms and bathrooms.

Also be sure to keep location in mind as well, including whether you want something in Sanctuary Lane, Plantation Inn, or Fern Hill.

Beachfront Properties

Beachfront properties are highly valued due to their prime location. They’re popular for both rentals and personal use.

These locations provide beautiful views, easy beach access, and usually a good position in a naturally protected harbor. Check listings carefully, and you might be lucky enough to get a property with 360-degree views of the Atlantic Ocean or the Caribbean Sea.

Benefits of Buying St. Kitts and Nevis Real Estate

Tax Benefits

St. Kitts and Nevis offers a unique blend of beauty, nature, and tax perks for homeowners. Since there is no inheritance tax, you should not be worried about the huge tax implications while transferring your home to the future generations.

If your property is located in a tourist area, you might consider renting it out further as an Airbnb. Since there is no individual income tax, the profit from renting out your accommodation is not taxable at all.

Path to Citizenship

St. Kitts and Nevis is famous for their citizenship program, which allows you to invest in real estate in exchange for a Nevis passport.

Please note that the purchase of only certain real estate projects on the island can get you a passport here. On top of that, the purchase price of the property should not be less than USD 325,000.

Island lifestyle

Owning property in St. Kitts and Nevis can significantly enhance your lifestyle. St. Kitts is the larger and more vibrant island. You can expect a lively atmosphere with many activities to enjoy.

Nevis is famous for its peaceful atmosphere and natural beauty. Buying Nevis real estate, whether in St. Kitts or Nevis, gives you access to beautiful beaches, outdoor pursuits, and cultural events. You’ll find rich history and plenty of opportunities for sailing and hiking to Nevis Peak.

Blend of privacy and real estate

The beauty of the real estate market in St. Christopher and Nevis is that it is not overwhelmed with massive developments and not crowded with tourists. Therefore, buying property here can guarantee you a certain degree of privacy.

High ROI

Due to the influx of tourists in recent years, the real estate market is booming with tourist residencies. Each 4th position in the island’s estate listings is a tourist accommodation.

The average annual ROI for tourist accommodation is about 4-8%, depending on the type and location of the property. If you hire a property management company to manage your estate, be ready that they can charge up to 50% of the property’s monthly income.

Cost Considerations for Property Purchase

It’s important to be aware of all the costs associated with buying St. Kitts and Nevis real estate. This includes the purchase price, taxes, and various fees.

Aliens Land Holding License

A buyer who purchases a property as a part of the citizenship by investment application process is exempted from obtaining an Alien Land Holding License.

For the rest of the cases, foreign individuals and companies should apply for an Aliens Land Holding License prior to purchasing the real estate on the island.

The license fee is 10% of the property’s market value. As usual practice, the whole price of the license is being paid by a buyer. The cost for issuance of an Alien Land Holding License is up to USD 1,500.

The law of St. Kitts and Nevis exempts certain real estate development areas in the country from obtaining such a license. For example, foreigners who wish to purchase immovable property in Frigate Bay are exempted from the obligation to obtain the said license.

Property Tax

The property tax is an annual tax that is paid by all owners of property, including land and buildings. The property tax is calculated from the property’s market value. The due date for paying the annual property tax is the 30th of June.

The law exempts certain types of real estate from paying a property tax, including educational institutions, non-profit organizations, etc.

The tax rate differs depending on the property location and its class.

Accommodation

St. Kitts: building 0.002%; land 0.002%

Nevis: building 0.002%; land 0.003%

Agricultural

St. Kitts: building 0%; land 0%

Nevis: building 0%; land 0.001%

Commercial

St. Kitts: building 0.003%; land 0.003%

Nevis: building 0.003%; land 0.002%

Institutional

St. Kitts: building 0%; land 0%

Nevis: building 0.002%; land 0.0015%

Residential

St. Kitts: building 0.002%; land 0.002%

Nevis: building 0.0015%; land 0.0075%

Transfer Tax

The transfer of the ownership of Saint Kitts and Nevis real estate is also subject to mandatory transfer tax.

As a rule, the transfer tax is paid by a vendor. The usual tax rate varies between 6% and 10% of the property’s market value. For example, the transfer of land between immediate family members is subject to a 6% transfer rate. The same transfer between unrelated third parties is taxed at a 10% rate.

The law does also provide tax exemptions for certain areas throughout the islands, like Frigate Bay. At the same time, other development areas like the Southeast Peninsular are subject to elevated rates of 12% from the property’s market value.

Assurance Fund Fee

The Assurance Fund Fee is a mandatory contribution that is paid upon the purchase of the property. It is a duty of a buyer to pay this tax.

The assurance fund fee amounts to 0.2% of the property’s price indicated in the real estate sale agreement.

Other mandatory expenses

Every sale of St. Kitts and Nevis real estate involves professional legal fees for the attorney and real estate agent who are engaged in the transaction.

The real estate agent commission varies depending on the selected agency and does not exceed 6% of the property’s purchase price.

The legal expenses are set up by the Bar Association of St. Kitts and Nevis and should not exceed 3% of the purchase price.

Finally, the buyer would need to cover the price for producing a Land Survey Report, which adds up to USD 1,000 to the total bill of costs.

Maintenance Costs

If you do not plan to live in St. Kitts and Nevis real estate all year round, it is worth considering additional maintenance costs. Luckily, St. Kitts and Nevis provide a wide selection of estate agencies that specialize in holiday rentals.

The monthly price varies depending on many factors, like location, size, and type of accommodation.

Legal Framework for Buying St. Kitts and Nevis Real Estate

If you are buying your home in Saint Kitts and Nevis without applying for the passport, the purchase process takes less time. Though there are certain pitfalls you should be aware of.

Book your property.

Whether this is a private mansion or a condominium, you need to make sure that your rights are reserved over the property of your choice.

Therefore, you can put a deposit to make sure that the property of your dreams won’t slide away in the next few months. Usually, the amount of deposit varies from 10% to 20% of the purchase price.

Once you are ready, the sale-purchase agreement could be signed.

Alien’s Land Holding License

Foreign companies and individuals who wish to acquire St. Kitts and Nevis real estate have to obtain an Alien Land Holding License.

Without getting this license, it won’t be possible to register your title ownership over the selected property.

Obtainment of the Survey Report

The survey report is needed to define the property’s real market value. This is needed to define the final amount of taxes to be paid upon closing the transaction.

Usually this is the responsibility of a buyer to pay for such a report.

Closing the Deal

Attorneys will finalize the deal by issuing a Certificate of Title. Once this is done, the stamp duty (transfer tax) should be paid to the Island Revenue Authority.

After that, all the documents should be taken to the registry in order to register the ownership of the new buyer.

Citizenship by Investment Program

St. Kitts and Nevis is a global leader and pioneer of citizenship by investment programs. Buying St. Kitts and Nevis real estate gives you the right to apply for a passport upon fulfillment of the following conditions:

• The development projects should be located in specifically designated areas; and
• The minimum investment amount is USD 325,000 for shared ownership and USD 600,000 for solo ownership.

The application process lasts for 8 months on average and includes the following stages:

Preparatory stage

You would be required to sign a preliminary sale-purchase agreement with the developer for the selected property. After that you would need to submit documents to the Citizenship Unit. As a part of the citizenship by investment application process, additional due diligence, application, and interview fees should be paid upfront.

The exact amount of mentioned fees is calculated based on the composition of the family applying for citizenship by investment.

Submission of documents

The documents should be submitted to the Citizenship Unit only by the licensed agent or their sub-agents.

The Citizenship Unit takes up to 180 days to consider each application. This stage also requires a mandatory interview for all applicants above 16 years old.

Once the review of the submitted documents is completed, the Citizenship Unit can adopt one of the following decisions:

– Approve application;

– Deny it; or

– Delay for cause.

Finalizing the purchase

Once approval in principle is received, the final sale-purchase agreement of real estate should be signed. Investors have up to 90 days from the moment of recipe approval in principle to close the deal.

At this stage the whole amount of the purchase should be transferred to the seller’s account. If the property is still under construction, the money should be transferred to the developer’s escrow account.

Finally, an applicant would be required to pay additional government approval fees on top of the real estate’s purchase price.

Upon fulfillment of the conditions above, the Citizenship Unit should be notified about the same.

Obtainment of the Citizenship Certificate

The next step requires all applicants to take an oath. This could be done 100% remotely. After the ceremony, a certificate of citizenship is issued. Usually it takes up to a few days.

After that, the certificate of citizenship is submitted further to the passport office in order to issue a paper passport.