Buying property in Trinidad and Tobago
Foreign buyers looking for a luxury property in the Caribbean should take a good look at Tobago. This small island has so many benefits that foreign investors have been buying up land in Tobago at an alarming rate. The Trinidad and Tobago government has now started a licensing system to monitor international buyers so that the small island does not become so expensive that local people cannot buy property on their island. So why is Tobago so popular?
Tobago remains an unspoiled place of natural beauty, eco-tourism and beach vacations are part of its appeal. Real estate in Tobago is still relatively cheap compared to islands like Barbados, for example. The tropical climate, the easy access and the solid and balanced economy combine to make it one of the best investments in the Caribbean.
The process of buying land and property in Trinidad and Tobago is simple and similar to many other Caribbean nations. Foreign nationals and foreign companies may purchase up to one acre of residential land and/or up to five acres of commercial land without applying for a license. Any purchase over these amounts will need to apply for a Foreign Owner’s License through the government.
When you find the desired property and agree to the terms with the seller, you both sign an Agreement of Sale. The buyer pays a 10% deposit which will be held on deposit and the contract is binding on both parties. Traditionally, final payment is due at closing 90 days from the signing of the Sale Agreement to allow time for all necessary searches and records.
After signing the Agreement of Sale, the buyer instructs a local attorney to conduct a title search. At the same time, your attorney must conduct a record search of the utilities and the Water and Sewerage Authority (WASA) and ensure that all taxes are paid. Obtaining authorization from WASA is probably the longest part of this process and can take up to six weeks. It will also cost TT$575 for the certificate. Once title to the property is verified and all records are verified, you can proceed to closing.
Closing fees include a stamp duty, any legal fees, usually 1-2%, and homeowners insurance costs. A Stamp Duty Memorandum must be submitted to the Board of Internal Revenue for stamp duty assessment prior to closing so you know how much to pay. After closing, take the memorandum to the Treasury Board and pay the tax. Once the payment is made, the Transfer Memorandum is sealed and you can now present it for registration in the Land Registry.
The Property Registry prepares a property return form, which shows the change of ownership for the payment of property taxes. This document is presented at the District Revenue Office and that’s it.