St. Vincent & Grenadines: Overview
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In Depth
- Overview
- Rental Yields
- Taxes and Costs
- Buying Guide
- Landlord and Tenant
- Inheritance
- Living There
- Country Statistics
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Global Statistics
Regional Statistics
- Sq. M. Prices
- Rental Yields
- Rents
- Price/Rent Ratio
- Buy/Sell Costs
- Rental Income Tax
- Capital Gains Tax
- Landlord & Tenant Law
- GDP Per Capita
- GDP/Cap Growth 1 yr
- GDP/Cap Growth 5 yrs
- Currency +/- Value
St. Vincent & Grenadines: Not only Mustique
St. Vincent and the Grenadines is an independent member of the British Commonwealth. Some of its islands are very popular with the rich and famous; namely, Mustique, Palm Island and Union Island.
The multi-island state has lush mountains, amazing rainforests, an active volcano, and beautiful sandy beaches.
The average price for properties in the islands is US$2,300 per square meter (sq. m.), according to Global Property Guide research.
Foreigners need to acquire an Alien Land Holding License before buying property.
RENTAL YIELDS
Yields are low at 3.9% near the coast
Yields are around 3.9% for properties in coastal areas, the centre of the rental market, according to Global Property Guide research.
Rents are predominantly seasonal, but these figures are for long-term rentals.
TAXES AND COSTS
Taxes are generally low
Rental Income: Non-residents’ gross rental income is taxed at a flat rate of 10%, withheld by the tenant.
Property: Property taxes on residential properties are levied at a flat rate of 5% of the property value.
There are no capital gains or inheritance taxes.
Residents: Residents are liable to tax on worldwide income.
BUYING GUIDE
Buying costs are high in St. Vincent & the Grenadines
Roundtrip transaction costs, i.e., the total costs of buying and selling a property, are around 15.75% - 22.25% for non-landed the properties. Total costs are significantly higher for landed properties bought by foreigners because of the Alien Land Holding Licenses, charged at the minimum of XCD10,000 for properties worth XCD100,000 and below. The buyer and the seller equally share the 10% stamp duty.
LANDLORD AND TENANT
Rental market in St. Vincent & Grenadines is strongly pro-tenant
The law in St. Vincent and the Grenadines generously protects the tenant.
Rent: Initial rents can be freely determined between landlord and tenant. It is costly to take a tenant to Court to try to recover rent arrears, and time consuming.
Tenant Security: It is extremely difficult to evict tenants even though the tenant may be paying rent very sporadically or may have ceased to pay rent entirely.
The usual practice is that the tenant gives at least two (2) weeks to one (1) month’s notice.
ECONOMIC GROWTH
Agriculture, tourism
Agriculture, banana production in particular, is still the major industry. When the European Union phased out the preferential access of former colonies to the EU in 1999, economic diversification became essential.
St. Vincent and the Grenadines’ tourism industry developed well and is the Islands’ main source of foreign exchange. The number of visitors increased by 3.8% per year from 1999 to 2002.
The economy grew by 3.2% p.a. from 2000 to 2005. Growth of 4.2% is forecast for 2006.
RESIDENTIAL PROPERTY AROUND THE WORLD
Asia & Pacific
Bubble fears prompt foreign ownership limits in China
America & Caribbean
The slowdown of the U.S. housing market
Middle East and Africa
Bahrain is open to foreigners and sizzling hot
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| RESIDENTIAL PROPERTY FACTS | |
| Price (sq.m): $2,300 For a 200 sq. m. property, usually an apartment. | Rental Yield: 3.91% For a 200 sq. m. property, usually an apartment. |
| Rent/month: $1,500 For a 200 sq. m. property. | Income Tax: 10.00% Assumptions: Owners are a non-resident couple drawing US$ / €1,500 per month in rent, with no other local income. |
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Roundtrip Cost:
18.8%
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: Strongly Pro-Tenant Rating is based on a detailed study of each country’s law and practice. | |
NOVEMBER 2006
- ECCB Predicts Continued Growth For Eastern Caribbean - Tax-news.com
SEPTEMBER 2006
- St Vincent upscale tourism marketing campaign takes on St Lucia/Barbados - caribbean360.com
AUGUST 2006
- IMF: Near-term growth prospects for the Eastern Caribbean is strong - Jamaica Observer
JUNE 2006
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