ANGUILLA Law and Practice Contributed by: Nina Rodriguez, Webster Legal
6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time Rental and lease agreements can be entered into, to occupy and use real estate for a limited period of time without buying it outright. Per - sons/entities rarely enter into licensing agree - ments. 6.2 Types of Commercial Leases Commercial lease agreements are dependent on the intended use of the properties and the terms agreed between the parties. 6.3 Regulation of Rents or Lease Terms Rental and lease agreements are not regulated, save that if the lease term exceeds a period of two years the lease is required to be recorded in the Land Registry. 6.4 Typical Terms of a Lease The following terms are typically included in a lease agreement for business premises, whether contractual or regulated: • length of lease term; • maintenance and repair of the real estate actually occupied by the tenant; • frequency of rent payments; • COVID-19 pandemic issues; • the full description of the leased property; • the purpose of the lease; • insurance, determination, breach, nuisance and remedial and notice clause(s); • permissions with respect to subleasing (if allowed); and • the jurisdiction of the lease.
A foundation is considered by some investors to be a preferred vehicle. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity There is no specific feature that the by-laws of a company formed to invest in real estate would contain. As is usual in companies, there will be mechanisms for approval of contracts and agreements, voting rights of investors, and so on. 5.3 REITs REITs are not currently available as an invest - ment vehicle in this jurisdiction. 5.4 Minimum Capital Requirement The minimum capital required to set up each type of entity used to invest in real estate would be the value of one share. 5.5 Applicable Governance Requirements The governance requirements will be set out in the legislation under which the entity is formed. 5.6 Annual Entity Maintenance and Accounting Compliance A company that holds an interest in property is required to ensure that all the statutory require - ments are met. This includes the filing of an Annu - al Return and Economic Substance Return and complying with normal accounting principles. The costs associated with these requirements can vary, but they start at a minimum of USD800. Accounting compliance costs will vary based on the organisation that is performing this function.
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