The property market in the Federation of St Kitts and Nevis remains vigorous, as the number of air flights into the islands increases.
The unspoiled islands of St Kitts and Nevis, with their excellent beaches and attractive landscape, are less expensive than most Caribbean islands, though real estate prices have been increasing since the early-2000s. Price rises slowed during the past two years due to the global crisis, but the upward movement did not halt.
A major draw is the citizenship-by-investment programme, which for a US$350,000 purchase of a unit in a pre-approved real estate development in St. Kitts or Nevis, plus cash payments of US$35,000 for the head of household, and US$15,000 for each additional family member, buys citizenship, the right to live and work in the Federation, visa-free access to the Schengen countries, and a large range of other benefits.
No official data on house price movements in St Kitts and Nevis exists; but reports from property developers and homebuyers suggest continued upward movement.
According to Coldwell Banker St. Kitts and Nevis Realty, property demand in St. Kitts and Nevis remains robust. While some banks have imposed stricter lending criteria, interest in home ownership is still strong, and lending institutions remain committed to financing in the housing market.
In the past four years the pace of real estate development has increased rapidly – with some slowdown more recently - spurred by the arrival of the Marriott Hotel in Frigate Bay, and increased number of air flights into the islands. St. Kitts was ranked 4th on the British Airways’ top 10 holiday destinations for 2011.
“Since the Marriott opened, property sales and prices have increased dramatically,” says local real estate agent Brian Kassab.
The local housing market is expected to stay healthy in 2011, as the economy recovers and strong demand continues.
Foreigners need an Alien Land-Holding License. The islands can also serve as your gateway to a second citizenship.
The unspoiled islands of St Kitts and Nevis, with their excellent beaches and attractive landscape, are less expensive than most Caribbean islands, though real estate prices have been increasing since the early-2000s. Price rises slowed during the past two years due to the global crisis, but the upward movement did not halt.
A major draw is the citizenship-by-investment programme, which for a US$350,000 purchase of a unit in a pre-approved real estate development in St. Kitts or Nevis, plus cash payments of US$35,000 for the head of household, and US$15,000 for each additional family member, buys citizenship, the right to live and work in the Federation, visa-free access to the Schengen countries, and a large range of other benefits.
No official data on house price movements in St Kitts and Nevis exists; but reports from property developers and homebuyers suggest continued upward movement.
According to Coldwell Banker St. Kitts and Nevis Realty, property demand in St. Kitts and Nevis remains robust. While some banks have imposed stricter lending criteria, interest in home ownership is still strong, and lending institutions remain committed to financing in the housing market.
In the past four years the pace of real estate development has increased rapidly – with some slowdown more recently - spurred by the arrival of the Marriott Hotel in Frigate Bay, and increased number of air flights into the islands. St. Kitts was ranked 4th on the British Airways’ top 10 holiday destinations for 2011.
“Since the Marriott opened, property sales and prices have increased dramatically,” says local real estate agent Brian Kassab.
The local housing market is expected to stay healthy in 2011, as the economy recovers and strong demand continues.
Foreigners need an Alien Land-Holding License. The islands can also serve as your gateway to a second citizenship.
Analysis of St. Kitts & Nevis Residential Property Market »
RENTAL YIELDS
Last Updated: Jan 30, 2012
Rental yields in St. Kitts have improved, based on the latest Global Property Guide survey . Investment properties located in Frigate Bay, Half Moon Bay and the South East Peninsula, the upscale neighborhoods of St. Kitts, cost less now than last year, but their rental income remains stable. Last year, condos and houses cost an average of US$690,000 and are rented at an average of US$2,180, earning a poor rental yield of 4.07%.
The investment climate now is better with the price of condos and houses dropping to an average of US$575,000, but the monthly rental income remains the same, and rental yields have risen to 5.11%.
In Nevis, house prices remain stable. Prices per square metre have fallen very slightly, from US$3,700 per sq. m last year to US$3,500 this year.
The investment climate now is better with the price of condos and houses dropping to an average of US$575,000, but the monthly rental income remains the same, and rental yields have risen to 5.11%.
In Nevis, house prices remain stable. Prices per square metre have fallen very slightly, from US$3,700 per sq. m last year to US$3,500 this year.
TAXES AND COSTS
Last Updated: Apr 02, 2012
Rental Income: Rental income is not taxed.
Rental income remitted to individuals or companies outside of St. Kitts is subject to 10% withholding tax.
Capital Gains: No capital gains tax is levied, except on assets sold within one year, which are taxed at 20%.
Inheritance: There are no inheritance taxes.
Residents: The economic citizenship program of St. Kitts and Nevis was established in 1984 to attract foreign investors.
Rental income remitted to individuals or companies outside of St. Kitts is subject to 10% withholding tax.
Capital Gains: No capital gains tax is levied, except on assets sold within one year, which are taxed at 20%.
Inheritance: There are no inheritance taxes.
Residents: The economic citizenship program of St. Kitts and Nevis was established in 1984 to attract foreign investors.
BUYING GUIDE
Last Updated: Mar 28, 2008
Roundtrip transaction costs range between 22.5% and 37.5% of the property's value, the bulk of the cost being the stamp duty.
Sellers pay stamp duty, which is 18.5% for properties the South East Peninsula, 14% in Special Development Areas, 5% for condominiums, and 12% for other properties. The seller also pays the real estate agent’s commission, at approximately 6%.
Buyers pay for an Alien Land-Holding License at 10% of the property's value, and legal fees (1% - 2.5%).
Sellers pay stamp duty, which is 18.5% for properties the South East Peninsula, 14% in Special Development Areas, 5% for condominiums, and 12% for other properties. The seller also pays the real estate agent’s commission, at approximately 6%.
Buyers pay for an Alien Land-Holding License at 10% of the property's value, and legal fees (1% - 2.5%).
LANDLORD AND TENANT
Last Updated: Jun 13, 2006
Rent: Rents are freely negotiable between landlord and tenant. Most rental agreements are short-term contracts. Long-term contracts are possible, but usually last only one year.
Tenant Eviction: Evicting tenants is not difficult. The legal system is based on English common law.
Tenant Eviction: Evicting tenants is not difficult. The legal system is based on English common law.
ECONOMIC GROWTH
Last Updated: Feb 18, 2011
Modest economic growth in the next two years
The Federation of St. Christopher (St. Kitts) and Nevis (pop 40,000, spread over 100 square miles) is an autonomous British colony. An amicable relationship between the two islands has fostered political stability over the past decades.St. Kitts and Nevis offers it all, both beaches and tropical forests and fantastic scenery, in a way that no other Caribbean islands quite do. Economic progress led to significant improvements in living standards with GDP per capita of US$11,724.
The small economy of St Kitts and Nevis contracted by about 1.5% in 2010, from a 5.5% drop in the previous year, according to the latest IMF estimates. The decline was largely influenced by the decreased activity in tourism and construction sector.
The economy is expected to recover in the next two years, with a projected GDP growth rate of 0.5% in 2011 and 1.5% in 2012.
The country’s economy experienced strong growth for the past two decades, with an average GDP growth rate of 4.2% from 1993 to 2008. However, occasional troubles strike the islands. In 1998, hurricanes curtailed economic growth and damaged about 85% of housing stock. Then in 2001, economic recovery was interrupted by the 9-11 terrorist attacks in the US.
Economic growth rose to 6.4% in 2006, mostly as a result of diversification into tourism and construction related to the Cricket World Cup. In addition, the government aggressively promotes light manufacturing and international financial activities, to fill the gap left in the economy by the sugarcane industry.
Sugar used to be the backbone of the economy. However, due to huge losses caused by decreasing world prices of sugar, the government closed the centuries-old sugarcane industry in 2005.
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