Property Investing In The Caribbean

The exotic islands of the Caribbean present not only a paradise in which people can

relax and enjoy themselves on a holiday, but also a good business opportunity. By owning properties in the Caribbean, you stand a chance of taking a piece out of the figurative pie of the tourism market in the islands. With this property, you can earn money by putting them up for rent or by operating a hotel.

Of course, before you can start to earn money, you need to invest first in an existing property in the Caribbean. As with any other investment, you need to make certain efforts and take some time before you put your money into the property. How do you successfully invest in a property in the islands?

Find Out the Tax Implications in Each Location

Investing in any property in the Caribbean islands would subject you to certain tax implications. You would need to find out about these tax implications so that you wont have a nasty surprise that most of the times go over your established budget. Knowing about these tax matters would help you adjust your budget accordingly before you make an investment.

These tax matters would include the following:

There is a 6% surcharge involved for a property in St. Vincent and the Grenadines when its price is more than US$100,000.

The Barbados Government requires non-resident investors to obtain permission before putting up a property. You need to approach an accounting firm and find out what the taxes to avoid surprises.

There are several fees to be paid when investing in a property in Antigua and/or Barbuda. These fees would include a license fee equaling 5% of the property value, 2.5% government transfer fees and 1% legal costs.

Properties in St. Kitts and Nevis require 10% of the property value to go to the local government. Plus, there are legal fees of 2% of the sale price involved.

Choose What Type of Property You Would Want to Invest In

The opportunities for investment in the Caribbean are numerous due to its status as a tourist spot. You would be overwhelmed at the actual number of properties that you can put your money in when you start looking at your choices. To avoid being swamped, decide first hand on what type of property you would want to buy or lease, or the type of property that you can afford.

For example, investing in a hotel property would certainly require you to put up a large amount of money considering the fees and expenses involved. On the other hand, investing on a villa or apartment would not cost you as much money as it would for a hotel.

You may also want to invest in an island. The Caribbean region is home to up to 7,000 islands with most of them unexplored or undeveloped. Getting a property there can ensure privacy, luxury, and complete relaxation. Nevertheless, take time to choose well and know what it takes to invest here.

by: Alfred Hill

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