St. Kitts & Nevis: Overview

RENTAL YIELDS

Last Updated: Jan 23, 2009

Yields very poor in St. Kitts' condos and houses

Though there are no yields for properties (condos and houses) with no more than two-bedrooms, 2009 Global Property Guide estimates show that the figures are still very poor at a mere 2.55%.

A six-bedroom house in St. Kitts sells for US$730,000 while a three-bedroom house in Nevis can already go as high as US$680,000.

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TAXES AND COSTS

Last Updated: Jul 15, 2006

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.

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BUYING GUIDE

Last Updated: Mar 28, 2008

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%).

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LANDLORD AND TENANT

Last Updated: Jun 13, 2006

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.

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ECONOMIC GROWTH

Last Updated: Mar 27, 2009

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.

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 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 short-lived by the 9-11 terrorist attacks in the US. In 2008, the economy grew 3.5% from 3.1% in 2007.

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.

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.