How to Buy Property in Antigua and Barbuda as a Foreigner
Antigua and Barbuda’s stunning landscapes and favorable investment climate make it a dream destination for property buyers. As a foreigner, purchasing property in this Caribbean paradise is a straightforward process, provided you follow the necessary steps and understand the legal requirements. Here’s a comprehensive guide to help you navigate the process of buying property in Antigua and Barbuda.
Step 1: Understand the Alien Landholding License (ALHL)
Foreign buyers are required to obtain an Alien Landholding License (ALHL) to purchase property in Antigua and Barbuda. This license grants foreigners the legal right to own property and is specific to the parcel of land being purchased.
Key Points:
- The application fee is 7% of the property’s value.
- The process typically takes 3-6 months.
- Approval is subject to due diligence checks by the government.
Step 2: Find the Right Property
Work with a licensed real estate agent who is familiar with the local market. They can help you identify properties that match your preferences, whether you’re seeking a luxury villa, a beachfront home, or a commercial property.
Step 3: Make an Offer and Sign a Purchase Agreement
Once you’ve found your ideal property, submit an offer through your agent. If the seller accepts, a purchase agreement will be drafted. This document outlines the terms of the sale, including the purchase price, deposit amount, and closing date.
Deposit: A 10% deposit is usually required to secure the property.
Step 4: Conduct Due Diligence
Hire a local attorney to perform due diligence on the property. This includes verifying the property’s title, checking for any encumbrances, and ensuring the property has all necessary approvals.
Step 5: Apply for the ALHL
Your attorney will assist you in applying for the Alien Landholding License. Prepare the required documents, including:
- Proof of identity and nationality.
- Financial references.
- Police clearance certificate.
- Details of the property.
Step 6: Finalize the Sale
Once the ALHL is approved, you can proceed to finalize the purchase. The remaining balance is paid, and the title is transferred to your name. Ensure that all government fees and taxes are settled during this stage.
Costs to Consider
1. Property Tax: Annual property tax is based on the market value of the property, typically ranging from 0.1% to 0.5%.
2. Legal Fees: Expect to pay 1-2% of the property’s value in legal fees.
3. Stamp Duty: Buyers are responsible for a 2.5% stamp duty fee.
Benefits of Owning Property in Antigua and Barbuda
- Citizenship by Investment: Investing in approved real estate projects allows you to qualify for the Citizenship by Investment Program.
- Tax Advantages: Enjoy a tax-friendly environment with no inheritance or capital gains taxes.
- High Rental Demand: The booming tourism industry ensures a steady demand for rental properties.
Conclusion
Buying property in Antigua and Barbuda as a foreigner is a rewarding endeavor, offering both lifestyle and investment benefits. By understanding the legal requirements and working with experienced local professionals, you can smoothly transition into property ownership in this Caribbean haven.
