Turks & Caicos Is.: Overview

RENTAL YIELDS

Yields are high for large estates in Providenciales

Good properties can command very substantial rents. "Villas on the beach here can rent for from anything from US$3,000 – US$7,000 a week. Some go for US$10,000 per week," says Peter Crawford Smith of Prestigious Properties. "We have one that rents for US$30,000 per week, but then there’s a chef, and lots of other benefits."

"There is certainly a shortage of rental property; it is a keen shortage, for sure."

Yields for properties in Providenciales measuring 400 sq. m. up are high at around 8% to 10%. Smaller properties have lower yields at 3% to 5%. Rents in the islands are predominantly seasonal but this yields figure is for long-term rentals.

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TAXES AND COSTS

Turks & Caicos has absolutely no taxes

There are no income taxes, property taxes, capital gains taxes, or inheritance taxes in the Turks and Caicos Islands for residents and non-residents alike.

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BUYING GUIDE

Buying costs are high in Turks & Caicos

Roundtrip transaction costs are around 8% to 24% of the property value, inclusive of the real estate agent’s commission at 6% to 10%.

Stamp Duty for properties located in Providenciales is at 6.5% for property value of US$25,000 to US$75,000. This can go up to 9.75% for property value of more than US$75,000, and 3% on islands other than Providenciales.

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LANDLORD AND TENANT

Turks & Caicos law is pro-landlord

Rent: Rents and rent increases can be freely negotiated.

Tenancy Contract: Rental agreements in Turks and Caicos are either short-term contracts (up to a month) or long-term contracts (more than a month). For long-term rental agreements, tenants usually pay a security deposit equivalent to one month’s rent before occupancy.

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ECONOMIC GROWTH

Absolutely tax-free, low crime rate and high rate in tourist arrivals

The Turks and Caicos, whose capital is Grand Turk, has a population of about 32,000 and an economy based on tourism - the islands boast one of the world's longest coral reef systems - as well as offshore finance and fishing. Fees from offshore financial activities and customs receipts are other major sources of revenue for the government.

The islands became famous in February 1962 when US astronaut John Glenn splashed down in waters off Grand Turk after he became the first US citizen to orbit the earth.

Situated about 575 miles (1,000 km) southeast of Miami and north of Haiti, Turks and Caicos is made up of around 40 islands, eight of which are inhabited. The islands were declared a crown colony and dependency of Jamaica in 1874. In 1962, they became a British crown colony.

Seven years later, the powers held by the governor of the Bahamas were transferred to the governor of Turks and Caicos and in 1976 ministerial government and elections were introduced. The islands have a governor appointed by Britain's Queen Elizabeth, an executive council and a legislative council.

The weather is usually sunny and relatively dry, though it suffers frequent hurricanes. The islands have limited natural fresh water resources; private cisterns collect rainwater for drinking.

Import duties are a major source of revenue for the government because the islands import most capital goods and food products for domestic consumption.