ANGUILLA Law and Practice Contributed by: Nina Rodriguez, Webster Legal
7.7 Requirements Before Use or Inhabitation
Effective 1 July 2022, goods and services tax becomes payable on short-term accommoda - tion (rental) for a period not exceeding 182 days at a rate of 13%. This tax is collected by the proprietor from the occupier for payment to the Inland Revenue Department. Gains from dispo - sition of real property are not taxed. Exemption applies, upon the implementation of GST, to: • a supply of: (a) a lease, licence, hire rental or other form of supply of accommodation, to the extent that it is a supply of the right to occupy or be accommodated in premises for 183 days or more; or (b) leasehold land by way of lease (not being a grant or sale of the lease of that land) to the extent that the subject land is used or is to be used for the principal purpose of accommodation in a residential dwell - ing erected or to be erected on that land, where the lease is for 183 days or more; • a supply of the following immovable property: (a) vacant land; and (b) a residential dwelling that is: (i) resold by the initial purchaser includ - ing all subsequent sales of such property; and (ii) sold by the first-time owner after two • a lease, licence, hire rental of land to the extent that it is to be used for agricultural purposes; and • a lease, licence, hire rental of land except for in vacant land, where the lease is for 183 days or more. 8.5 Tax Benefits There are no tax benefits from owning real estate in Anguilla. years of continuous occupancy of such premises by the owner or his immediate family;
Once the contractor issues a Certificate of Practical Completion, or a similar document, arrangements will be made for the Building Inspector to inspect the property to confirm that it is completed and fit for habitation or use for its intended purpose. An Occupancy Certificate is issued after inspection. 8. Tax 8.1 VAT and Sales Tax Gains from disposition of real property are not taxed. 8.2 Mitigation of Tax Liability There are no methods commonly used to miti - gate transfer, recordation, stamp or other similar tax liability on acquisitions of large real estate portfolios. 8.3 Municipal Taxes Property taxes are payable by the proprietor of developed property whether or not it is occupied. There are no business rates and no exemptions. Property taxes are not charged on undeveloped property (bare land). 8.4 Income Tax Withholding for Foreign Investors There is no specific income tax withholding in Anguilla. However, under the Goods and Services Tax Act 2022, where a taxable person is provid - ing goods or services to the government and is required to charge GST on those goods or ser - vices, the government may withhold such taxes that would be charged by the taxable person.
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