1. Property Tax

One of the advantages of buying and owning property in Turks and Caicos is that there is no property tax. This can save property owners a significant amount of money over time. For a $1M property, this could mean saving anywhere from $10,000 to $20,000 per year in property taxes.

2. Stamp Duty

Stamp duty is a tax that is levied on the transfer of ownership of property. In Turks and Caicos, the stamp duty rate is 8% of the property´s value. For a $1M property, this means that the stamp duty would be $80,000.

3. Legal Fees

Legal fees for property purchases in Turks and Caicos typically range from 1.5% to 2% of the property´s value. For a $1M property, this would mean legal fees of around $15,000 to $20,000.

4. Real Estate Agent Fees

Real estate agent fees in Turks and Caicos are typically around 6% of the property´s value. For a $1M property, this would mean agent fees of $60,000.

Insurance: Insurance is an important consideration for property owners in Turks and Caicos due to the high risk of hurricanes. The average cost of insurance is around 1% to 2% of the property´s value. For a $1M property, this would mean insurance costs of $10,000 to $20,000 per year.

5. Insurance

Insurance is an important consideration for property owners in Turks and Caicos due to the high risk of hurricanes. The average cost of insurance is around 1% to 2% of the property´s value. For a $1M property, this would mean insurance costs of $10,000 to $20,000 per year.

6. Utilities

1. Water: In Turks and Caicos, water is a scarce resource, and therefore, the government charges a desalination fee to produce clean drinking water. This fee is typically around $3 per 100 gallons, which would amount to approximately $500 per month for a family of four.
2. Electricity: The cost of electricity in Turks and Caicos is relatively high compared to other Caribbean islands, and it is billed on a tiered system based on consumption. For a $1 million property, the average monthly electricity bill would be around $500 to $800.
3. Internet and Cable: The cost of internet and cable can vary based on the provider and package selected. On average, a standard package for both services would cost around $200 to $300 per month.

7. Short-Term Rental Costs

If you plan on renting out your property as a vacation rental, there are additional costs to consider. Short-term rental management fees are typically around 25% to 35% of the rental income, and you may also need to pay for advertising and marketing, cleaning fees, and property management services.

8. Maintenance and Upkeep Costs

Owning a property in Turks and Caicos also comes with ongoing maintenance and upkeep costs. These can include regular cleaning, landscaping, and pool maintenance, as well as unexpected repairs and replacements. It´s important to budget for these costs and to factor them into your overall expenses.

Additional Costs and Taxes

some additional costs and taxes related to buying, investing, and renting out property in Turks and Caicos:

1. Landholding License: While there is no property tax in Turks and Caicos, there is an annual fee of $300 for a landholding license.
2. Tourism Accommodation Tax: If you plan on renting out your property on a short-term basis, you´ll need to pay a tourism accommodation tax. The tax rate is 12% of the rental amount and is payable to the government.
3. Condominium Fees: If you´re purchasing a condominium, you´ll need to pay monthly condominium fees. Condominium fees typically cover common area maintenance and utilities, and can range from a few hundred dollars to several thousand dollars per month depending on the size and location of the unit.
4. Homeowners Association Fees: If you´re purchasing a property in a gated community or a planned development, you may be required to pay homeowners association fees. These fees can vary widely depending on the community and the services provided, but can range from a few hundred dollars to several thousand dollars per year.

Costs Breakdown

As an example, let´s say you purchase a property in Turks and Caicos for $1 million. Here is an estimate of the taxes and costs you can expect to pay:

• Stamp duty: $80,000 (8% of $1 million)
• Legal fees: $15,000 to $20,000 (1.5% to 2% of $1 million)
• Real estate agent fees: $60,000 (6% of $1 million)
• Insurance: $10,000 to $20,000 per year (1% to 2% of $1 million)
• Short-term rental management fees: $25,000 to $35,000 per year (25% to 35% of rental income)
• Maintenance and upkeep costs: Varies depending on the property, but can range from a few thousand dollars per year to tens of thousands of dollars per year.

It´s important to note that these costs can vary based on the property´s location, size, and condition, as well as other factors such as the type of insurance coverage and the level of rental income. It´s recommended that you work with a local real estate agent and a qualified attorney to get a more accurate estimate of the taxes and costs associated with purchasing and owning a property in Turks and Caicos.