Jamaica: Overview

RENTAL YIELDS

Last Updated: Dec 09, 2008

Jamaican yields, spectacular at 10.14%

A two-three bedroom apartment in Kingston or St. Andrew costs around US$255,417. At a relatively low rent figure, gross rental return can reach around 10.14%.

Houses in Kingston and St. Andrew have lower average yields of 8.15%, reaching up to 8.49% for a four-bedroom property. Prices range from US$319,189 - US$806,380.

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TAXES AND COSTS

Last Updated: Nov 29, 2007

Taxes are moderate to high in Jamaica

Rental Income: Non-residents' rental income is taxed at a flat rate of 25%. Property taxes, maintenance costs, interest payments, and depreciation are deductible from taxable income.

Capital Gains: There are no capital gains taxes in Jamaica.

Inheritance: Inheritance taxes are imposed at a flat rate of 15% on the estate’s assessed value.

Residents: A tax rate of 25% is levied on the income of a resident.

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BUYING GUIDE

Last Updated: Nov 29, 2007

Buying costs are very high in Jamaica

Round-trip transaction costs are between 25.72% and 28.26%. The buyer and the seller are separately liable for their own legal fees. But both are jointly liable for the Stamp Duty of 5.5%.

The seller pays the real estate agent’s commission of 5%, which is subject to 15% General Consumption Tax. The transfer tax of 7.5% the property value is usually paid by the seller.

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LANDLORD AND TENANT

Last Updated: Nov 29, 2007

Jamaican pro-landlord luxury market

Jamaican law is pro-tenant, but in practice high-end rental agreements often ignore the law and practice is pro-landlord.

Rents: Rents and rent increases for all commercial and residential premises are set and regulated by the Rent Assessment Board. The standard rent is prescribed by the Minister and is currently set at 7.5% of the property’s assessed value.

Tenant Security: Lease agreements can either be short-term or long-term. A landlord cannot evict a tenant without a court order. It takes a minimum of 105 days to evict a tenant.

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ECONOMIC GROWTH

Last Updated: Jun 09, 2009

Unstable economy, weak growth

Jamaica (pop 2.6 million, GDP/Capita US$4,000) is the third largest Caribbean island and the largest English-speaking Caribbean nation. Jamaica is a mix of tourist luxury and resort development on magnificent beaches, superimposed on a lackluster economy with high levels of poverty and deprivation.

Since independence from Britain in 1962, power has alternated between the People’s National Party (PNP) and the more free-market Jamaica Labour Party (which ruled 1962-1972 and 1980-1989).

In March 2006 Portia Simpson Millar (popularly known as “Sista P”) took over the leadership of the PNP and became Jamaica’s first woman Prime Minister. The PNP is not generally credited as doing much for the island’s development – which has happened despite the PNP, rather than because of it. General elections are due by October 2007.

GDP growth of 3.7% is forecast for 2006, following GDP growth of 1.5% per year from 2000 to 2005 – not enough to reduce poverty and crime.

Historically, Jamaica depended on agriculture, producing a few staple crops for export. Now Jamaica is heavily dependent on the tourism industry, which accounts for 60% of the country’s GDP. The number of visitors to Jamaica increased an average of 5.6% per year from 2001 to 2005.