Country Guides Country Guide: Turks And Caicos

Date Published:

03/08/2009

On the surface, Turks & Caicos offers great investment potential - but beware the sting in the tail.

There is no annual property tax, income tax, corporate tax, inheritance tax or capital gains tax in Turks and Caicos. But stamp duty’s high at between 5-9.75 per cent – and when you come to sell, estate agent’s fees are between 6-10 per cent. Also, look out for capital gains tax (CGT) payable in the UK, assuming you are a resident for tax purposes in Britain.

Investment Potential: Capital Appreciation

Prices have increased ten-fold in some instances since the turn of the millennium and have trebled in almost all cases. On the plus side, space is finite and tourism is rising so demand will continue to outstrip supply. But, on the downside, it’s a fine balance to achieve without killing the goose that‘s laid the golden egg.

Investment Potential: Rental Yield

You're standing on pretty firm footing if you’re looking for a decent rental income. Tourist arrivals increased to 543,343 in 2006, up from 167,659 in 2000 - a 224 per cent growth rate – and are holding firm. luxuryretreats.com has villas on its books priced from a minimum US$378/night, right up to US$5,300/night (– yes, that’s per night).