Real estate in St. Lucia

Buying property in the scenic mango shaped island is an ideal investment as it brings the opportunity to stroll across the eastern shores of the island with the Atlantic Ocean lapping the sands; or explore the beaches of the west coast to experience the calm Caribbean Sea.

A small island, measuring roughly 35km by 18km, St. Lucia is a land of exceptional beauty with high hills, rainforests and twin volcanic peaks. St. Lucia also boasts 160km of some of the most evocatively beautiful coastline in the Caribbean, an important asset for both holidaymakers and international investors alike.

Non citizens require an Alien's Land Holding Licence to purchase real estate in St Lucia. It is a long drawn out process which involves 4 government departments, being the Planning Department (where it is submitted), the Attorney Generals' Office, the Prime Minister's Office (or Cabinet for properties larger than 1 acre in size) and the Governor General's Office.

• A local lawyer must register the licence
• It is a permanent licence which does not require renewal
• The licence is granted for a specific property or plot of land and is not transferable

The procedure for buying property in Saint Lucia is similar to that in the United Kingdom. Buyers are expected to pay a deposit of 10% during the contract signing, as a standard clause in St. Lucia's property sale contracts to prevent either party from being ripped off. If the buyer backs out from the transaction, the 10% deposit cannot be refunded. If the buyer's application for an Alien Land Holding License is denied, the buyer can refund the 10% deposit. If in case the seller backs out, the deposit is doubled and paid back to the buyer.

It is necessary to employ the services of a lawyer in order to register the Alien Landholding License - a process which usually takes six to eight weeks. After the contract of sale has been signed, the lawyer will forward the License application to the Ministry of Agriculture and Lands. Keep in mind that these Licenses are permanent, non-transferable, and property-specific. While waiting for the License to be released, the property survey and conveyance process can begin.

After the License has been granted, the actual transfer takes place. Any outstanding balance on the sale will be settled. The last step is to register the transfer and pay any remaining government duties.

If purchasing property is done through a company, the 10% Future Tax Liability will be taken off from the costs. It takes around six weeks to form a company and costs ECD3, 200 (US$1,185.18). If the buyer purchases land only, the buyer is required by the Government to develop or build on the land within 2-3 years from the date of purchase.

By: Shabina Sanad
GOWEALTHY.COM © 2008
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