ANGUILLA Law and Practice Contributed by: Nina Rodriguez, Webster LP
Reduction of Stamp Duties to Stimulate the Real Estate Market (Extended in 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 3. Real Estate Finance 3.1 Financing Acquisitions of Commercial Real Estate
persons with an interest in the land should con - tact the government and there should be negoti - ations for compensation upon reasonable terms and conditions. Compensation, if any, required to be paid based on the use of the land, shall be assessed and paid based on any actual damage suffered as a result of the acquisition. Such assessment is usually undertaken by a Board of Assessment. 2.10 Taxes Applicable to a Transaction A 5% stamp duty on transfer of land (or undi - vided share in land) and registration fees are customarily payable by a purchaser, who can negotiate with a motivated seller on any sale. If the purchaser is not an Anguillian, an Aliens Land Holding Licence (which attracts stamp duty of 12.5%) will be required from the govern - ment to legally acquire the property. If the land purchased by a non-Anguillian is undeveloped, 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.
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