ANGUILLA Law and Practice Contributed by: Nina Rodriguez, Webster Legal
3. Real Estate Finance 3.1 Financing Acquisitions of Commercial Real Estate
a 10% refundable deposit is payable by the purchaser pending completion of construction within a specified time noted on the Aliens Land Holding Licence. If shares in a company that owns property are transferred, the same principle applies – ie, 5% of the value of the assessed value of land being transferred in the transaction; and USD5 for every USD500 or part thereof on the share or stock in the company, which is payable at the Companies’ Registry. So long as an interest in property is being trans - ferred, stamp duty on the transfer will apply. Reduction of Stamp Duties to Stimulate the Real Estate Market (Which Expires on 31 December 2024) • Aliens Land Holding Licence (developed property) – 5% (down from 12.5%). • Aliens Land Holding Licence (undeveloped property) – 6.25% (down from 12.5%). There are circumstances (negotiated with the government) in which: • the stamp duty payable on an Aliens Land Holding Licence can be reduced or negoti - ated down to 0%; and • custom duties can be waived. 2.11 Legal Restrictions on Foreign Investors An Aliens Land Holding Licence is required before a foreign person can legally acquire an interest in real estate.
This is negotiated between/among the parties concerned. Typical financing options include personal savings or loans. 3.2 Typical Security Created by Commercial Investors The following securities are typically created or entered into by commercial real estate investors: • a charge over the real estate by the lender; • a caution preventing dealing with the security without the lender’s (chargee’s) consent; • life insurance on the principal or directors; • guarantee; • debenture over fixed and floating assets; and • any other security required by the particular lender. 3.3 Restrictions on Granting Security Over Real Estate to Foreign Lenders An Aliens Land Holding Licence is required by a foreign lender as this affects an interest in land. There are no restrictions on repayments being made to a foreign lender; the repayment terms are a matter of contract. 3.4 Taxes or Fees Relating to the Granting and Enforcement of Security Stamp duty on the charge to be registered against the property is 1% of the charge (loan) amount. Stamp duty on the loan document is USD20. Registration fees on each document are USD37.20. There are no documentary taxes in Anguilla. Notary public fees will vary.
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