Country Buying Guides - St Lucia

The conveyancing process

• Independent Lawyer
It is essential to use an independent lawyer with a legal knowledge of both the English and St Lucia legal systems, who are able to translate the documents and explain the terms to your full understanding.

• Due Diligence
It is important to carry out due diligence on the property you are purchasing in order to ensure there are no encumbrances on the property. Your independent lawyer will do this on your behalf.

• Alien’s Landholding
The property purchasing procedure in St Lucia is similar to that in England and Wales, with the exception of the Alien’s Landholding License. Foreigners wishing to purchase land in St Lucia must first acquire an Alien's Landholding License. The process of obtaining an Alien Land Holding License can take around 6-8 weeks. Laws were recently changed in St Lucia to make this process quicker and more flexible although it remains that the operation of guest houses of less than 10 rooms is not open to non nationals.

• The Licence

o A local lawyer registers the licence.
o It is a permanent licence, which does not require renewal.
o The licence granted is not transferable; it is for a specific property or plot of land.
o There is a non-refundable licence application fee of EC$1,500.00 (£288).
o The license fee is EC$5,000.00(£961) for properties measuring less than 1 acre and EC$10,020.00 (£1,925) if over 1 acre.
o There is a future tax liability of 10% of the cost of the property or plot of land, when eventually sold. This payment of 10% tax can be avoided by making the purchase through a company, which can be formed at the time of purchase. Company formation takes approximately 6 weeks and cost EC$3,200.00 (£615).

• Purchase Deposit
Buyers are expected to pay a deposit of 10% during the contract signing, as a standard clause in St. Lucia’s property sale contracts to prevent either party from being ripped off. This deposit is forfeited if the purchaser pulls out. Should the vendor pull out the purchaser receives double their deposit back. On very rare occasions the buyer is unable to proceed due to non-granting of the Alien's Landholding License, here the 10% deposit is refunded.

• Completion
After the License has been granted, the actual transfer takes place. Any outstanding balance on the sale will be settled. The last step is to register the transfer and pay any remaining government duties. If the buyer purchases land only, the buyer is required by the Government to develop or build on the land within 2-3 years from the date of purchase.

• Purchasing Off-Plan
When purchasing properties forming part of a new development, the developing company puts in place an escrow account for owners to make their deposits into, so that the money is totally safe An Escrow Account is an account which the purchaser transfers money into and neither can gain access to the balance until the transactions are complete and the purchaser is in full ownership of the property. This is a safe and practiced method of payment for property abroad. Payment of an off plan property is staggered typically; 10% deposit, 20% On completion of foundation, 30% On completion of structure, 20% On completion of roof and exterior, 20% On completion of building.

• Costs & Taxation
In St Lucia, Stamp duty is payable at 2% of the purchase price, other fees include the licence fee mentioned above, and legal fees.

• Inheritance
Most foreign legal systems’ inheritance law is different to our system, hence it is extremely important to use your independent lawyer to help you make a will so that in the unfortunate event of your passing, your wishes and not the word of the law is followed.

In Assocation With The International Property Law Centre LLP