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St. Kitts & Nevis: Overview

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Last Updated: Nov 26, 2007

St. Kitts & Nevis: Two islands, one paradise

Real estate prices have been increasing steadily for a decade. “There are not many interested sellers…people are holding back to wait for price rises,” says Michel Escher of Swiss Realty Pro.

The average price of properties in St. Kitts is US$2,400 per sq. m., according to Global Property Guide research, while Nevis properties sell for about US$2,800 per sq. m.

“We are now looking at around US$15–US$18 being asked on Frigate Bay property listings, with closing sale prices at the US$10.00 level,” says Escher. The price of residential land in Frigate Bay went from around US$3.50 per square foot (sq. ft.) in 1995 to US$5.00 per sq. ft. in 1999, to US$8.50 per sq. ft. in 2005.

In thepast three years the pace of development has increased, spurred by the arrival of the Marriott Hotel, and by increases in the number of cruise tourism propelled by the new deep-water Port Zante in downtown Basseterre.

Now Auberge Resorts are developing the Whispering Head Resort on 1,700 acres of the (very undeveloped) south east Peninsula. Another active developer is the Oceans Edge Group, which is developing at Frigate’s Bay.

Foreigners need an Alien Land-Holding License. The islands can also serve as your gateway to a second citizenship.

RENTAL YIELDS

Yields at 4% on houses in St. Kitts

Two-bedroom and three-bedroom houses in St. Kitts have yields of 3.53% and 4.01%, respectively. House prices can go as high as $986,000 with five bedrooms.

Prices in Nevis are around $4,059 per sq. m, with 35-sq. m. houses selling for as much as $1.2M.

Read Rental Yields  »

TAXES AND COSTS

Minimal taxation of properties in both St. Kitts & Nevis

Effective Tax Rate on Rental Income
Monthly Income US$1,500 US$6,000 US$12,000
Tax Rate nil nil nil
Click here to see a worked example
Source: Disclaimer

Rental Income: Rental income is not taxed.

Property: Property taxes are levied on the assessed rental value as determined by the government. Properties are taxed at a flat rate of 5% of the rental value, if the assessed rental value is above XCD 600 (US$222) in St. Kitts, or in Nevis above XCD 48 (US$18).

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.

Read Taxes and Costs  »

BUYING GUIDE

Buying costs are very high in St. Kitts & Nevis

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%).

Read Buying Guide  »

LANDLORD AND TENANT

The law is pro-landlord in St. Kitts & Nevis

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.

Read Landlord and Tenant  »

ECONOMIC GROWTH

Economic growth and political stability

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.

Nevis seems likely to separate from the federation, but fell short of the referendum requirements in 1998. The 1983 constitution gives Nevis the right to become a separate autonomous entity.

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.

In 2003, Nevis was home to around 17,000 offshore businesses operating under strict secrecy laws.

The economy, which is primarily based on offshore financial services, manufacturing, and tourism, grew by 2.7% p.a. from 2000 to 2005. Growth of 3.6% is forecast for 2006.

 

  • Pro-landlord rental market
  • Minimal taxation
  • Low to moderate yields
  • Very high transaction costs

RESIDENTIAL PROPERTY FACTS
Price (sq.m): $3,168 For a 200 sq. m. property, usually an apartment. Rental Yield: 4.01% For a 200 sq. m. property, usually an apartment.
Rent/month: $2,115 For a 200 sq. m. property. Income Tax: 0.0 Assumptions: Owners are a non-resident couple drawing US$ / €1,500 per month in rent, with no other local income.
Roundtrip Cost: 29.8% The total cost of buying and then reselling an apartment. Includes:

* all transaction taxes and charges:
* lawyers' and notaries' fees
* agents' fees

Assumptions: The buyers are non-resident foreigners. The apartment cost US$250,00 / €250,000. 		Cap Gains Tax: 0.0 Assumptions: The property was bought for US$250,000 / €250,000, and sold 10 years later, after a 100% appreciation.
Landlord & Tenant Law: Pro-Landlord Rating is based on a detailed study of each country’s law and practice.
MARCH 2007
FEBRUARY 2007
DECEMBER 2006

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