Taxation and Stamp Duty

STAMP DUTY

PURCHASE

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

Under $850,000 NIL
$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)

Under $450,000 NIL
$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 must submit documents indicating that they do not own any other properties.

LEASE

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.

LAND/PROPERTY TAX

Property Tax collections have been suspended since 2009 until further notice. For any transfers of property title, a Certificate of Payment or Land Tax Receipt confirming that the 2009 taxes have been paid must be provided by the Vendor.

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 of 12.5% 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 for repairs and maintenance of the property against the output VAT included in the rent collected from the Tenant.

CAPITAL 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:-

Full Name
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