Last Updated:
Mar 27, 2009
Real estate prices in St. Kitts and Nevis have been increasing steadily for a decade, though they’re considerably less expensive than most islands in the Caribbean region.
In Calypso Bay Resort, St. Kitts, resale prices of residential properties have quadrupled since it was launched in 2001, says Ricky Pereira of St. Kitts Realty.
A six-bedroom house in St. Kitts sells for about XC$1.97 million (US$730,000) while a three-bedroom house in Nevis sells for around XC$1.84 million (US$680,000), according to recent Global Property Guide research.
In the past four years the pace of real estate developments has increased rapidly, spurred by the arrival of the Marriott Hotel in Frigate Bay and the increased number of airlifts in the islands. Since then, St. Kitts and Nevis gained popularity among holiday travelers and wealthy foreign homebuyers.
“Since the Marriott opened, property sales and prices have increased dramatically on the island.” said local real estate agent Brian Kassab.
Foreigners need an Alien Land-Holding License. The islands can also serve as your gateway to a second citizenship.
In Calypso Bay Resort, St. Kitts, resale prices of residential properties have quadrupled since it was launched in 2001, says Ricky Pereira of St. Kitts Realty.
A six-bedroom house in St. Kitts sells for about XC$1.97 million (US$730,000) while a three-bedroom house in Nevis sells for around XC$1.84 million (US$680,000), according to recent Global Property Guide research.
In the past four years the pace of real estate developments has increased rapidly, spurred by the arrival of the Marriott Hotel in Frigate Bay and the increased number of airlifts in the islands. Since then, St. Kitts and Nevis gained popularity among holiday travelers and wealthy foreign homebuyers.
“Since the Marriott opened, property sales and prices have increased dramatically on the island.” said local real estate agent Brian Kassab.
Foreigners need an Alien Land-Holding License. The islands can also serve as your gateway to a second citizenship.
Read Price History »
RENTAL YIELDS
Last Updated: Jan 18, 2010
St Kitts and Nevis prices are high, and we see little sign that they have been much affected by the financial crisis. 2 bedroom St Kitts condominiums and houses cost around US$500,000, and 3 bedroom condominiums and houses cost around US$770,000.
There are low gross rental yields on houses and condominiums, at around 3.7% to 3.8%, reflecting the pattern of low rental yields in previous years.
For some reason, St Kitts and Nevis just isn’t a place where you can expect to make much from renting out your house or condominium.
There are low gross rental yields on houses and condominiums, at around 3.7% to 3.8%, reflecting the pattern of low rental yields in previous years.
For some reason, St Kitts and Nevis just isn’t a place where you can expect to make much from renting out your house or condominium.
TAXES AND COSTS
Last Updated: Jul 15, 2006
Effective Tax Rate on Rental Income |
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| 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 |
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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.
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.
BUYING GUIDE
Last Updated: Mar 28, 2008
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%).
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%).
LANDLORD AND TENANT
Last Updated: Jun 13, 2006
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.
Tenant Eviction: Evicting tenants is not difficult. The legal system is based on English common law.
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.
