Fees for Real Estate Transactions

Agent Commissions The Seller normally pays Real Estate Commission, 6% on developed land, 10% on undeveloped land. Stamp Duty The Buyer normally pays stamp Duty, or transfer tax, for Sales. For sales under $25,000 Stamp Duty does not apply, for sale between $25,000 and $75,000 - 6.5% on Providenciales, 5% on other Islands, for sales above $75,000 - 9.75% on Providenciales, 5% on other Islands. The Government reserves the right to assess a value higher than the sale price for purpose of Stamp Duty, if it feels a property sells below market value. There is also Stamp Duty of 1% of the sum secured by a mortgage. Legal Fees Each party is normally responsible for its own legal fees, and can range from 1 to 2% of sale price or hourly rate Incorporation Fees Many investors prefer to hold real estate anonymously in a Turk & Caicos Islands Corporation or Trust. Corporate set up fees are about $2,500, then $1,000 annually. This includes Administration, Government fees, Nominee Shareholders, Corporate Secretary, and annual filing and preparation of minutes, as required by law. Mortgage Costs Terms and rates vary by applicant. Banks will lend 50% to 75% of property value for 10 to 20 years terms. Current rates are at an all time low, under 7%. Private mortgage money is also available and some vendors and developers will finance short-term balances of sale. Property Management Fees Providenciales in particular has a very low vacancy rate and rents reflect this. Purchasing income property, whether for short term or long-term rental, can be an excellent investment. Tax-free returns of more than 10% are common. You can expect to pay between 10 to 20% for a long-term rental and 15 to 40% for a short-term rental.