New Property Sales Tax Legislation

We have just received a copy of the new legislation relating to the stamp duty and vendor's tax payable on the sale of property. There are major changes in the fees payable for the sale of property held by a company and we will be updating our client information accordingly.

The new rules take effect immediately and therefore apply to all future sales as well as sales that are in progress but not yet completed.

You may click on the following documents to view:

- New Stamp Duty Regulations
- Vendor's Tax Schedule

BACKGROUND

To date, many people have found it convenient to establish a company to hold property in St Lucia (single asset holding company) as the sales procedure entails transferring the shares of the company to a new owner, thereby conveying its assets (i.e the property) in the process. Such share transfer transactions attracted stamp duty of 0.5% of the value of the company and was payable by the purchaser.

The new legislation states "providing that at least 75% of the open market value of the assets of the Company or Corporation comprises immovable property" (which is normally the case with such holding companies) then stamp duty - including vendor's tax - shall be payable.

NEW RATES FOR COMPANY SALES

• Stamp duty payable by the purchaser - 2%

The rates for corporate vendor's tax payable by the vendor are now the same as those that have applied for some time to non-company sales and are as follows:

• Where the vendor is not a citizen of St Lucia or is a foreign company - 10% of value
  
• Where the vendor is a citizen or local company: 2.5% - 5% depending on value
  

Terra Online sponsors 2010 Kitesurfing Fiesta

Terra Online was one of the main sponsors of the 2010 St Lucia Kitesurfing Fiesta held at The Reef Kite + Surf in Vieux Fort on 27th-28th March. The event spanned two days and attracted both professional and amateur contestants from around the world.

Melissa Gil, professional kitesurfer and current kitespeed world champion kept the women's field on its toes, while Jeremie Tronet, internationally-renowned professional rider put the men through their paces. Heading the team of judges was Damien Leroy, professional kitesurfer and the 2008 US National courseracing champion.

Sandy Beach is one of the top kitesurfing locations in the Eastern Caribbean and the annual Kitesurfing Fiesta brings together world-class action on the water and a great St Lucian party atmosphere on land. Night time entertainment this year included live music from "4th World" reggae band and "Off-Island" Rock band, while food booths provided a variety of scrumptuous St Lucian fare from fresh seafood to Rastafarian 'ital' dishes.

Terra Online is proud to be associated with this kitesurfing festival which is a community-based, not-for-profit venture endorsed by the Ministry of Tourism.

Overall Results:

Pro Women
1. Beth Lygoe (St Lucia)
2. Melissa Gil (Costa Rica)
3. Linn Svendsen (Norway)

Pro Men
1. Jeremie Tronet (Martinique)
2. Mickael Neral (Martinique)
3. Benjamin Todd (UK)

Amateur Men
1. David Heritier (France)
2. Nicholas Borgne (Martinique)
3. Tim Fishleigh (Dominica)

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