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Owning a dream home in the scenic and un-spoilt islands of British Virgin Islands requires time and commitment. The British Virgin Islands are made up of a relatively small land area and therefore there is only a finite amount of land available. For this reason land tends to be more expensive in the British Virgin Islands than on some of the other larger Caribbean islands. Yet the BVI has lots of land, populated at a low density.
The average price of a 3BR house and lot along the coast of Tortola and Virgin Goda is around US$1.2 million while a 5BR house costs around US$1.9 million.
Unless you or your parents were born in the BVI, you will need a "Non-Belonger Land Holding License" (NBLHL) in order to buy property. A NBLHL is only granted in order for you to take title to a specific property. A NBLHL takes 12 to 24 months to obtain. A 10% deposit is paid on a Sale & Purchase Agreement and goes on to a CD until closing. Interest to the seller is customary. If buying an empty lot, you must agree to build within 2 to 3 years with a minimum expenditure of approximately US$250,000.
If you wish to rent your house, you must request the right to rent on your NBLH License Application. It may or may not be granted. If the home had a previous rental license from the Department of Trade then chances are you may get permission to rent. Since 1998, most NBLH Licenses have had a restrictive clause saying something to the effect: this home may not be rented without permission of the Governor in Council, which will not be reasonably withheld.
All non-residents, including British citizens, require a passport to enter the BVI, except Canadian and US citizens, who need only a birth certificate, certificate of citizenship or voter registration card. Visas are given for up to six months' stay provided that there is a return or onward ticket and evidence of sufficient funds.
Purchase and Sale Agreement: Once agreement in principle has been reached, a legally binding purchase and sale agreement is drawn up by the vendor's attorney, and signed by the parties. This normally contains a condition that completion is contingent upon the purchaser obtaining a NBLHL. A prospective purchaser normally pays a 10% earnest deposit to the vendor's agent, to be held in escrow. A purchaser will normally acquire absolute title which is registered in the BVI Government Land Registry.
Applications for a License must be accompanied by two personal financial references, one bank reference, two character references, police record, application fee of US$200 (individual) or US$500 (company), and, once approved, issuance of license fee of US$600 (individual) or US$1,000 (company). Licenses carry a 2 or 3-year commitment to develop unimproved land. The objective of the licensing regulations is to prevent speculation on undeveloped property.
If the application for a License relates to undeveloped or partly developed land, the applicant will be required to commit to spend a specific sum on development, normally not less than US$100,000, within a specified period, normally three years. Undeveloped land cannot be resold until such a development commitment has been fulfilled, or a penalty paid, normally 25% of the sale price.
However, the purchase of developed property for residential purposes will generally not incur a development commitment. An overseas investor is free to let a property on a long term or short term (holiday let) basis subject to approval to rent the property by the Executive Council as part of the License application and the granting of a Trade License. Such approval by the Executive Council will be stated on the License and will automatically grant approval of the relevant Trade License. The annual fee for the required Trade License of a Non-Belonger is US$400.
Stamp Duty is based on the contracted price or the appraised value, whichever is higher.
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