Residential Property (Including Dwelling House)
This charge is payable by the purchaser on the total consideration of the purchase price of residential properties (with dwelling house).
The rates are as follows:
| Under $2,000,000.00 | – | NIL |
| $2,000,001 – $2,400,000 | – | 3% on the difference |
| $2,400,001 – $2,500,000 | – | 5% on the difference |
| $2,500,000 and Over | – | 7.5% on the difference |
For non-First Time Homeowners the exemption is up to a maximum of $850,000.
Residential Property (Land Only)
| Under $450,000 | – | NIL |
| $450,001- $650,000 | – | 2% on the difference |
| $650,001 – $850,000 | – | 5% on the difference |
| $850,000 and Over | – | 7% on the difference |
Agricultural | Commercial | Investment Property
| Under $300,000 | – | 2% on the total |
| $300,001 to $400,000 | – | 5% on the total |
| Over $400,000 | – | 7% on the total |
Lease
Landlord and Tenant Ordinance Chapter 27 No. 16 – Section 3
No Lease for a term exceeding three years or surrender of any land shall be valid as a lease or surrender, unless the same shall be made by deed duly registered; but any agreement in writing to let or surrender any land shall be valid and take effect as an agreement to execute a lease or surrender, and the person who shall be in the possession of the land in pursuance of any agreement to let may, from payment of rent or other circumstances, be construed to be a tenant from year to year.
- Stamp Duty is usually $5.00 per every $250.00 of rent.
- Leases for 3 years and over must be registered.
- Leases for 1 year or more must be stamped.
Land and Property Tax
Property Tax collections will be fully implanted in 2017 based on The Property Tax Act 2009, with minor amendments to the Valuation of Land Act. It should be noted that the legislation provides for exemptions to homeowners on the basis of inability to pay. New tax invoices will be issued in 2017, subsequent to the completion of the valuation roll prepared by the Commissioner of Valuations and the assessment roll prepared by the Inland Revenue Division. It should be noted that under the Valuations of Land Act, every owner is required to submit a return which will be used by the Valuation Division to calculate the Annual rental value, failing which the Division will prepare its own valuation
Rental Income Tax
The gross rental income earned from the property is assessable to tax under our Income Tax Laws with a deduction being allowed for expenses incurred in maintaining the property and the wear and tear on furnishings and equipment supplied therein. The net income is taxed at 25% for both individuals as well as for companies.
Value Added Tax
Value Added Tax is charged on income earned from a commercial property only. The owner may reclaim the input VAT that is charged by contractors and/or suppliers for repairs and maintenance of the property against the output VAT included in the rent collected from the Tenant.
Capital Gains Tax
There is Capital Gains Tax at the rate of 25% as per our Income Tax laws, on all real estate purchased and sold within a 12 month period.
