Montserrat: Overview

RENTAL YIELDS

Last Updated: Nov 29, 2005

Yields are low at 3% in Montserrat

Yields are around 3% for properties located in Montserrat’s northern coastal areas, far from the volcano at the southern part of the island.

The average price for properties in northern Montserrat is around US$2,950 per square metre.

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TAXES AND COSTS

Last Updated: Jul 25, 2006

Montserrat's rental income tax is low

Rental Income: Non-residents’ earnings from rental property are taxed at a flat rate of 10%. Property taxes are levied at 1.7% of the land value and 0.3% of the property value.

There are no capital gains or inheritance taxes.

Residents: Resident individuals pay income tax only on employment income.

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BUYING GUIDE

Last Updated: Mar 04, 2008

Buying costs are moderate in Montserrat

Roundtrip transaction costs, i.e., the total cost of buying and selling a property, are around 10% of property value, usually paid by the buyer. The Alien Land Holding License is the biggest cost at 5% of property value.

Montserrat uses the East Caribbean Dollar at a fixed exchange rate of US$1=EC$2.7. However, US dollars are generally used in real estate transactions.

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LANDLORD AND TENANT

Landlord-tenant relations

Landlord-tenant relations

ECONOMIC GROWTH

Last Updated: Aug 31, 2006

Volcano economy

Montserrat, a British colony in the Caribbean, is a small island rising in a series of mountain slopes to Soufriere Hills volcano, its highest point.

Only around 4,000 people are left on the island, half of them foreign workers, supported by the UK government.

In 1997, the newly active volcano turned angry and began spewing out huge quantities of molten lava and hot ash, filling the sky with sparks and detonations. Eventually the lava covered two thirds of the island. Entire villages were buried by the flow, including the Georgian-era capital of Portsmouth.

Montserrat’s primary activity prior to 1995 was tourism, particularly residential tourism. But it is hard to attract visitors. Only 13,085 visitors came in 2005, of which 9,690 stayed over, a 14% decline on 2004 - partly because of the discontinuation of the ferry service from Antigua to Montserrat.

The government has battled the odds, promoting volcano-related tourism (website). The capital Plymouth was relocated in 1996, and with British help a new airport was constructed in 2005.