British Virgin Islands levies property taxes only

July 05, 2018

INDIVIDUAL TAXATION

There are no taxes on income and capital gains in the British Virgin Islands, which is an overseas territory of the United Kingdom.

RENTAL INCOME

Hotel Accommodation Tax

Hotel accommodation tax is levied at 7% on the gross rent of properties leased for a short period of time (less than six months).

Long-term rentals (over six months) and leasing of properties to British Virgin Islands´ residents are not liable for this tax.

Stamp Duty on Lease Agreements

Stamp duty on lease agreements depend on the status of the tenant; whether he is considered to be a belonger (national) or non-belonger (foreigner). The base is the total rent for the duration of the lease.

STAMP DUTY ON LEASE AGREEMENTS

STATUS OF THE TENANT RATE
Belonger or National 1%
Non-belonger or Foreigner 1.5%

CAPITAL GAINS
There is no capital gains tax or inheritance tax in the BVI.

Stamp Duty on Property Transfers

Stamp duty on property transfers depend on the status of the buyer; whether he is considered to be a belonger (national) or non-belonger (foreigner). The tax base is either the sales price or the market value of the property, whichever is higher.

STAMP DUTY ON PROPERTY TRANSFERS

STATUS OF THE BUYER RATE
Belonger or National 4%
Non-belonger or Foreigner 12%
Source: Global Property Guide

PROPERTY TAX


Land Tax

Land tax for non-belonger property owners (foreigners) is generally levied at US$50 per acre.

Belongers (nationals) pay land tax at reduced rates, compared to non-belonger property owners (foreigners).

LAND TAX FOR BELONGERS (NATIONALS)

LAND SIZE, IN ACRES RATE
Up to ½ acre (2,023 sq. m.) US$50
½ acre - 1 acre (4,046 sq. m.) US$150
Over 1 acre US$50 each additional acre
Source: Global Property Guide

Building Tax

Building tax is imposed at a flat rate of 1.5% of the assessed annual rental value (ARV). This tax is payable every 01 September annually.

 

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