St. Lucia: Overview

RENTAL YIELDS

Last Updated: Mar 12, 2009

Condos average out to 4.18%

Property prices in St. Lucia range from US$2,200 to US$3,400 per square metre (sq. m) for houses, with sizes from 150 to 400 sq.m. Condominiums in our sample had surprisingly higher per sq. m. prices, at US$4,200 per sq.m. We can’t really explain this, except to say that this may be a vagary of the local housing stock.

       • A typical 150 sq. m house costs US$325,000
       • A typical 400 sq. m, house costs US1.3 million.
       • A typical 170 sq. m. condominium costs US$720,000

Condominiums produce average gross rental yields of 4.18%.

Gross rental yields figures for houses were unfortunately unobtainable, as we could not obtain enough samples of long-term rents to generate reliable figures.

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TAXES AND COSTS

Last Updated: Jul 19, 2006

Rental income tax is high

Rental Income: Rental income is taxed at progressive rates. Tax rates start at 10% and can go up to 30% depending on the tax base.

Property: Property taxes are levied at a flat rate of 5% of the property’s annual rental value, as determined by the Inland Revenue Department.

There are no capital gains or inheritance taxes.

Residents: Residents must pay taxes on their world-wide income.

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BUYING GUIDE

Last Updated: Mar 27, 2008

Buying costs are very high in St. Lucia

Round-trip transaction costs, i.e., the total costs of buying and selling a property, range from 14% to 24%. If the seller is a foreigner, the vendor’s tax is 10%. The seller also pays for the 6% real estate agent's commission. The buyer pays legal fees (3% - 5%) and stamp duty (2%). Foreigners need an Alien Landholding License to buy landed properties.

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LANDLORD AND TENANT

Tenancy law…

Research in progress.

ECONOMIC GROWTH

Last Updated: Jul 14, 2009

Economic slowdown after Cricket World Cup

St Lucia’s economy has slowed sharply during the last two years, with GDP growth of 1.7% annually from 2007 to 2008. From 2003 to 2006, the economy grew by around 4.2% per year.

The economic slowdown was mainly due to a drop in construction activity. After the 2007 Cricket World Cup, held in St Lucia, the construction sector declined by 10.3% in 2007 and by another 14.4% in 2008.

Tourist arrivals were about 915,000 in 2008, up by just 2% from a year ago, according to One Caribbean. From January to April 2009, arrivals fell 8.8% to 100,577, as compared tothe same period last year.

St Lucia’s economy is expected to contract by 1.4% in 2009, as most of its major sectors were already affected by the global crisis.

Historically, St. Lucia’s economy was based on exports bananas to Europe. When the European Union phased out the preferential access of former colonies to the EU market, diversification became St. Lucia’s priority.

The government promoted tourism, and offshore financial services. Though bananas remain the island’s largest export crop, services now account for almost 80% of GDP.

St Lucia is often called “The Helen of the West Indies” for its captivating beauty. With a total land area of about 620 square miles, St Lucia is one of the most beautiful islands in the world.