With effect from May 7th 2010 TCI Government significantly reduced transfer tax/duty payable on most real estate transactions in the islands.  In addition to the reduced transaction costs purchasers may now either: (a) pay the amount due in equal installments over a 4 year period, or; (b) take advantage of a futher 10% reduction in duty by paying the entire amount at the front end (i.e. within 30 days of the date of the transfer).

The following table sets out the stamp duty rate applicable on transfers of real estate on the islands of Providenciales, Pine Cay, Parrot Cay, West Caicos, Ambergris Cay:

Analysis of the latest MLS real estate sales figures (as of August 20th 2006) in the Turks & Caicos for the years 2005 and 2006 shows strong increases across the board in 2006, particularly in higher-value transactions.  In broad terms the 2006 figures indicate a percentage increase of more than 70% in gross sales figures and a 44% increase in the gross number of closed sales over the preceding year.  Presumably that margin will increase significantly by the end of the year as we get back into the main tourist season. 

The strength in the Turks & Caicos real estate market is particularly noteworthy in a global environment of increasing interest rates and concerns about slowing real estate sales.  There are too many variables to say with certainty why the Turks & Caicos is bucking the larger trend, but we expect the reasons include:

The Turks & Caicos Government recently approved a reduction in stamp duty (land transfer tax) lasting until June 31st 2008 as follows:

• On transactions of more than US$300,000 on Providenciales and nearby Cays (e.g. Pine Cay, Parrot Cay) from 9.75% to 6%; .
  
  
• Turks & Caicos Property - January 2007
  

  New Address in Grace Bay - Press Release

  From the 5th of January 2007 Turks and Caicos Property’s main office will be located at Ocean Club West, Grace Bay (formerly the Ocean Realty sales office). This location is temporary pending completion of our offices in the Ocean Club West Plaza building on Grace Bay Road (scheduled for May 2007).
  
  Turks & Caicos Property, Ltd. has also agreed to take over the marketing and sales of condominiums in Ocean Club’s two beachfront resorts from Ocean Realty. .
  
  

• Where would you be going with all them Pounds?
  

  - Random thoughts on currency fluctuations and investment opportunities for Europeans considering the Turks & Caicos real estate market.
  
  I'm Irish by birth, living and working in the Turks & Caicos which has the US Dollar as its currency. As a result I have a tendency to watch the currency exchange US Dollar / Euro rates on Bloomberg while I sip my first cup of tea in the morning and lament the US dollar's extended decline - which doesn't seem likely to change in the short-term. I have to return to the "auld sod" at some point this year to touch base with kith and kin and looking at the exchange rate I'm dreading it. Do you remember early in 2002 when the exchange rate was €1.165 or £0.70 to US$1.00? Its now €0.78 / £0.53 to US$1.00. Other currencies from the Bermudian Dollar to the Nicaraguan Cordoba have seen declines similar to the US Dollar against the Euro and Pound. While this will put a damper on my shopping when I am back in Eire, it does create interesting possibilities for European investors looking to snap up a place in the sun as an investment, a second home or retirement pad, so I thought I would put quill to parchment, so to speak, and record my thoughts on the matter.
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• Why buy real estate in the Turks and Caicos Islands?
  

  The Turks & Caicos is a tiny British Dependent Territory at the southern end of the Bahamas chain of islands, relatively unknown until recent years. With a selection of luxury beachfront resorts, great beaches and amenities the Turks and Caicos is attracting all sorts of well-known people (Bruce Willis; Donna Karan; Keith Richards; Cindy Crawford; and a host of others have visited or bought second homes in the islands). If you haven’t heard of it yet keep your eyes and ears open.

  The Turks and Caicos has (by default rather than design) a number of advantages which have been catalysts in making the jurisdiction the fastest growing economy in the Caribbean and a hot-bed of international real estate interest. Those advantages include the following:
   

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• Considerations specific to buying in TCI
  

  Purchasing a second home second home in the Turks & Caicos offers you the chance to expand your horizons outside your borders.  With research and the help of a good agent you can be comfortable that you have made a wise choice.  There are a number of factors which make the Turks and Caicos a sensible and convenient choice which include the following (apologies if there is repetition on some of my pet points!): 

  Currency:

  The Turks & Caicos uses the US Dollar as its unit of currency.  This is a huge convenience for US persons - no standing in cues at Bureau's de change or fumbling with bizarre coinage; no last minute dash to try to spend the currency that you have in your pocket before you leave; no returning home with a wallet full of unusable currency and putting up with extortionate exchange rates. [The fact that the US Dollar has fallen by some 40% against the Euro and British Pound also creates interesting opportunities for people holding those currencies]. 

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• Real Estate Trends - 2006
  

  The Turks & Caicos Islands real estate market is very attractive for American buyers and that trend has strengthened in the first quarter of 2006.

  Purchasers of properties in the Turks & Caicos buy for a variety of reasons. Some view Turks & Caicos real estate as a good hedge against a domestic market or economy that may slow down. Others note that property values are appreciating rapidly and are intrigued by the prospect of making an investment which yields a good return in a compressed timeframe. With all buyers there is an appreciation of what the Turks & Caicos Islands have to offer and the intrinsic value of real estate in this increasingly high-end Caribbean getaway.

  Buying land or a second-home purchasing in the Turks & Caicos is a low risk straightforward process when compared to many other Caribbean territories, for example: .
  
  

• What’s available in real estate?
  

  Whether you are looking for an investment or looking for a second home or ideal place to retire the Turks & Caicos has it all: beachfront, oceanfront and canal front homes; luxury condominiums; majestic hillside homes, tracts of undeveloped land and private islands to call your own. Visit our website to find out what is available in Turks and Caicos real estate.

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