This charge is payable by the purchaser on the total consideration of the purchase price of the real estate as follows:- Owner Occupied Residential Property
|$850,001- $1,250,000||–||3% on the difference|
|$1,250,001 – $1,750,000||–||5% on the difference|
|$1,750,000 and Over||–||7.5% on the difference|
Residential Transfers (Land Only)
|$450,001- $650,000||–||2% on the difference|
|$650,001 – $850,000||–||5% on the difference|
|$850,000 and Over||–||7% on the difference|
Land Estates, Commercial, Investment Property
|Under $300,000||–||2% on the total|
|$300,001 to $400,000||–||5% on the total|
|Over $400,000||–||7% on the total|
As of January 2019, an amendment was made allowing first time homeowners an increase in the Stamp Duty exemption from $850,000 to $1,500,000. Buyers muse submit documents indicating that they do not own any other properties.
Landlord and Tenant Ordinance Chapter 27 No. 16 – Section 3
No Lease for a term exceeding three years or surrender of any land shall be valid as a lease or surrender, unless the same shall be made by deed duly registered; but any agreement in writing to let or surrender any land shall be valid and take effect as an agreement to execute a lease or surrender, and the person who shall be in the possession of the land in pursuance of any agreement to let may, from payment of rent or other circumstances, be construed to be a tenant from year to year.
Stamp Duty is usually $5.00 per every $250.00 of rent.
Leases for 3 years and over must be registered. Leases for 1 year or more must be stamped.
Property Tax collections will be fully implanted in 2017 based on The Property Tax Act 2009, with minor amendments to the Valuation of Land Act. It should be noted that the legislation provides for exemptions to homeowners on the basis of inability to pay. New tax invoices are to be issued, subsequent to the completion of the valuation roll prepared by the Commissioner of Valuations and the assessment roll prepared by the Inland Revenue Division. It should be noted that under the Valuations of Land Act, every owner is required to submit a return which will be used by the Valuation Division to calculate the Annual rental value, failing which the Division will prepare its own valuation
TAXATION ON RENTAL INCOME
The gross rental income earned from the property is assessable to tax under our Income Tax Laws with a deduction being allowed for expenses incurred in maintaining the property and the wear and tear on furnishings and equipment supplied therein. The net income is taxed at 25% for both individuals as well as for companies.
VALUE ADDED TAX
Value Added Tax is charged on income earned from a commercial property only.
The owner may reclaim the input VAT that is charged by contractors and/or suppliers forrepairs and maintenance of the property against the output VAT included in the rent collected from the Tenant.
CAPTIAL GAINS & OTHER TAXES ON PROPERTY
There is Capital Gains Tax at the rate of 25% as per our Income Tax laws, on all real estate purchased and sold within a 12 month period.
There are no estate and/or inheritance taxes in T&T
THE PROCEEDS OF CRIME ACT
With regards this Act specifically pertaining to “listed businesses” real estate is the first to be mentioned as a business activity or as a profession. As a real estate business Massy Realty is compliant and as a result we require all our clients to provide us with the following information:-
|Residential Address & Proof of Address – a utility bill is acceptable|
|Two forms of Identification|
|Purchasers &/or Tenant must provide Source of Funds for the payment of monies for each transaction|
|Ask for our Client Data Capture form – you must provide your signature for each transaction|