Global Property Guide

Financial Information for Residential Property Buyers


Living There

Last Updated: June 26, 2017

Jamaica beach front houses

INDIVIDUAL TAXATION

Residents are taxed on their worldwide income. Married couples are generally assessed and taxed separately. However, married taxpayers may file for an Election of Joint Assessment, so that their income will be taxed jointly.

INCOME TAX

Income is classified into the following categories: (1) income from trade, business, and profession, (2) income from property, including rents and premiums, (3) dividends and other distributions, and (4) interest, discounts, annuities, pensions or other annual or recurring sums.

Resident individuals are taxed at a flat rate of 25%. Residents are entitled to tax-free amounts, the income tax threshold is JMD1,500,000(US$11,539) as of 01 April 2017.

Individuals who earn income exceeding JMD6 million (US$46,154) per annum are subject to income tax at a flat rate of 30%.

RENTAL INCOME
Rental income is taxed at 25%. Income-generating expenses such as land and property taxes, repairs and maintenance costs, interest payments on mortgage, and depreciation are deductible from the taxable income.

CAPITAL GAINS
No capital gains tax is levied in Jamaica.

However, capital gains earned from selling property that are considered business income may be subject to income tax.

Stamp Duty on Transfer of Real Property

Stamp duty is levied at a flat rate of 4% on transfers of real property owned by individuals.

PROPERTY TAX

Real Property Tax

Real property taxes are computed on the basis of the unimproved value of the land, which is essentially the property's market value as determined by valuations office.

REAL PROPERTY TAX

TAX BASE, JMD (US$) TAX RATE
Up to 300,000 (US$2,307) JMD1,000 (US$8)
Over 300,000 (US$2,307) 0.75%

When more than one person holds possession of taxable land, there is a joint liability for the payment of property tax.

Parochial Property Tax

Parochial property taxes are under the jurisdiction of parochial or local governments. The tax base is computed on the basis of the unimproved value of the property, which is essentially the property's market value as determined by valuations office. Applicable tax rates vary, depending on the rulings of the local governments.


CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are taxed at a flat rate of 25% for unregulated companies and a flat rate of 33.33% for regulated companies. Income-generating expenses are deductible when calculating taxable income.

Comments

angela | January 19, 2011

I think the fact that landlords cannot secure a deposit before renting their properties to a tennant is wrong and unfair and sends the message to the tennant that they dont have to be accountable for the damage thay are doing to peoples property. I have lived in the US for over 20years and that country have thought me a lot about being accountable. Some Jamaicans wants everything America has but does not want their laws of configuration. I strongly think that there should be 1. A security deposit 2. A lease agreement with a gaurantor 3.A blacklist of for tennants who keeps damaging peoples properties and trying to get away with it.4. There should be a way to screen these individuals you are putting on your property 5. last but not least there should be a rental application and proof of continued income. Landlords have mortgages to pay and if we cant pay our mortgages and fix our properties then all we will have is delapadated and broken down neghbourhoods otherwise called "GHETTOS" everywhere. The more prestine a neighborhood is the better the residents will want to keep it an we can only acheive this with tennants who are paying their rents on time. NOW to the landlords who are treating your tennants unfairly "SHAME ON YOU" you need to go back to the times when you were a tennant YOURSELF, a happy tennant will always take care of your property plus some and for most of us no tennant no mortgage then comes foreclosure, remember unfair game always play twice. Jamaica is a beautiful Island but we can make it better if we change our thought patternby being responsilbe, being reasonable and having a heart.

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