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
  

Amy Winehouse knows a thing or two

The internet is ablaze with the news that singer Amy Winehouse jetted back into St Lucia on Thursday with a view to buying property here. The star has spent several holidays on the island in the past and is known to have fallen in love with St Lucia.

Apart from purchasing property, Ms Winehouse is also slated to perform at the annual St Lucia Jazz Festival which is being held in May of this year. She joins a growing number of celebrities who have discovered that St Lucia is not only a great place to escape to, but that in terms of investment, owning property here makes a whole lot of sense.

Update:
Incidentally, just to show how wrong news reports can be, we did sell Shingle Cove (the property referred to in the article below), but we did not sell it to Amy! Click here to view our listing

The following article is reprinted from The Daily Star:

AMY ISLE-HOUSE!
21st May 2009 // by: By Tom Hutchison

Amy Winehouse loves St Lucia so much she is eyeing up a £3.2million permanent home there. The pop wreck has her heart set on the 2.5-acre exotic tropical estate called Shingle Cove.

The luxury holiday hotspot boasts six bedrooms, six bathrooms, a massive swimming pool and private security guards.

Amy, 25, has spent the last few months stopping on the Caribbean isle. The oceanside resort is set back in secluded forests and has a superb view of all the millionaires’ yachts sailing to and from the island.

It even has a team of staff on hand at all hours to meet guests’ every whim.

Rehab star Amy is currently renting a similar resort while she perfects her comeback stage show and records new material. She said: “I’m in the best place I’ve been for ages.

“I’m getting lots of exercise and have been able to relax.”

And her recent poor performance at the St Lucia Jazz Festival certainly has not put her off the island.

Puttin' on the Ritz

The staff of Terra Online were among invited guests at the ground-breaking ceremony for the Ritz-Carlton five-star resort at Black-Bay in Vieux Fort.

Dignitaries and other guests braved somewhat grey skys to witness Prime Minister Stephenson King and the principles of Roebuck International turn the first sods of soil for what is to be Vieux Fort's first ever luxury villa, marina and golfing resort. The project is a joint venture between Roebuck international, an Irish development company, and the government of St Lucia. The property will be managed by the Ritz-Carlton group.

The development is to be spilt between two locations - one on a Caribbean site at Black Bay and the other on the Atlantic coast in the Savannes Bay area. The Black Bay location will be home to the Ritz-Carlton Hotel & Spa, the Ritz Residences (condominium suites and beachfront villas ) and marina, while the Atlantic location will feature the Arnold Palmer and Christy O'Connor Jr signature golf course & club house, estate homes, golf cottages was well as a member's beach club.

The resort includes a world-class spa, tennis, championship golf course, water sports, and numerous dining options. According to The Ritz website, these include "The Restaurant for all -day dining, The Lobby Lounge for traditional light fare, hors d' oeuvres, cocktails and afternoon tea, and The Beach Bar & Grill for casual cuisine. In addition, The Clubhouse Restaurant and The Clubhouse Bar offer casual dining and cocktails for golfers and members. Provisions found at The Gourmet Shop will enable you to create a sumptuous dining experience in the privacy of your suite."

PHOTOS

Prime Minister Stevenson King and guest

PM King accepts a token of appreciation from
Neal Sweeney, president of Roebuck International

Hon. Minister Ausbert D'Auvergne

Former Prime Minister Dr. Kenny Anthony (L)
and Hon. Minister Arsene James (R)

Senator Allen Chastenet
Minister for Tourism

Ms Janine Compton (L)
Member of Parliament - Micoud North

Mr Nicholas John
Chairman - National Development Corporation

Mr Des Roach -Master of Ceremonies
and St Lucia representative for Roebuck International

Mr Joseph Harris - Harris Brokers (L)
Mr Franz Louis-Fernand, owner Fox Grove Inn (R)

Mrs Bonnie Zephirin
Owner/Developer - Castles in Paradise Luxury Villas

Orlando Satchell - Executive Chef (L) &
Robert Stewart - General Manager (R) both of Ladera Resort

Robert 'Zi' Taylor serenades the crowd