TURKS & CAICOS Law and Practice Contributed by: Oliver Chapman and Chris Smith, Griffiths and Partners
2.9 Condemnation, Expropriation or Compulsory Purchase The government may compulsorily acquire any land, but this is not common. Compensation is payable typically at the property’s market value. 2.10 Taxes Applicable to a Transaction Stamp duty is payable on: • the transfer of land, which as a matter of con - tract is usually paid by the buyer, although the law makes both the seller and buyer liable; • the grant of a new lease, which as a matter of contract is usually paid by the tenant; • a debenture or a charge (mortgage) over land, which is usually paid by the borrower; and • the transfer of shares in a landholding com - pany (share transfer duty, rather than stamp duty), in which duty as a matter of contract is usually paid by the buyer, although the law imposes the liability on the company whose shares are being transferred. Stamp duty on land is paid on the consideration stated in the instrument, or the market value of the property conveyed or transferred, whichever is higher. The current rates of stamp duty on a purchase of land or property in the Islands’ commercial and tourism hub, Providenciales (the rates vary for land or property on other islands in the Turks and Caicos Islands), are: • USD25,000 to USD250,000 – 6.5%; • USD250,001 to USD500,000 – 8%; and • USD500,001 and above – 10%. Stamp duty payable on a land charge is 1% of the secured sum up to a maximum of USD50,000.
The current rate of stamp duty payable on leases is as follows. • If the term is not defined or is uncertain, or where the term is for seven years or less: (a) USD50 where the annual rent exceeds USD2,000 but does not exceed USD5,000; and (b) 1% where the annual rent exceeds USD5,000. • If the term exceeds seven years but does not exceed 35 years: (a) USD2 if the annual rent does not exceed USD100; (b) USD10 for annual rent over USD100 but less than USD500; (c) USD40 where the annual rent exceeds USD500 but does not exceed USD2,000; (d) USD100 where the annual rent ex - ceeds USD2,000 but does not exceed USD5,000; and (e) 2% where the annual rent exceeds USD5,000. • If the term exceeds 35 years: (a) USD8 if the annual rent does not exceed USD100; (b) USD40 for annual rent over USD100 but less than USD500; (c) USD160 where the annual rent exceeds USD500 but does not exceed USD2,000; (d) USD400 where the annual rent ex - ceeds USD2,000 but does not exceed USD5,000; and (e) 8% where the annual rent exceeds USD5,000. Transfer duty on the transfer of shares in a landholding company is calculated as A/B x C x 8%, where A = the total number of shares being transferred, B = the total number of issued shares in the landholding company concerned
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