What You Need to Know.
The Non-Belongers Land Holding License
All overseas investors, including citizens of the United Kingdom, require a Non-Belongers Land Holding License to purchase property in the BVI. Agreements to purchase property are therefore made contingent upon such a license being obtained by the purchaser. A license gives an entitlement to own a specific property and is non-transferable. Application for a Non-Belongers Land Holding License is made to the Government of the BVI and must be supported by two character references, a financial reference, and a police certificate of good standing plus other supporting documentation. The purchase of a property by a Non-Belonger is required to be advertised locally for four consecutive weeks in a local paper prior to submission of the License Application to Government.
If the application for a License relates to undeveloped or partly developed land, the applicant will be required to make a commitment to the BVI Government to expend a specific sum on development within a specified period which will normally be three years. The development commitment required will typically be no less than $250,000 and can be proportionately more according to acreage. Environment and other planning considerations will determine the appropriate level of development. Sub-division of land is not encouraged, except as a part of a comprehensive development scheme.
The BVI Government and Oil Nut Bay discourage land speculation.
Undeveloped land cannot be resold until such a development commitment has been fulfilled, or a penalty is paid to the Government on closing. Generally, the penalty will be 25%-40% of the sale contract price. The purchase of developed property for residential purposes will generally not incur a development commitment. The objective of the licensing regulations is to prevent speculation on undeveloped property. Applications for all licenses are referred to the Executive Council for approval. There is a license filing fee of $200.00 for each person named in the application and $500.00 for companies. The fee for the grant of the License is $600.00 for each person or company named, in the License as well as for each director or shareholder of a company. This fee is also applicable to each director or shareholder of a company.
Immigration
Purchase of property in the BVI does not in itself establish resident status; however, an identification card is available to a person who holds a Non-Belongers Land Holding License which will allow the holder to be granted leave to stay in the BVI for a period of up to six months.
A certificate of residence, entitling the holder to land or embark in the Territory for an indefinite period, may be granted to a person who intends to reside permanently in the BVI.
Real Estate Taxes
On the transfer of a property title, a Stamp Duty at the rate of 12% of the price or evaluation is payable by the transferee (purchaser). A Land Tax at the rate of $50 is due annually for any acreage under a half of an acre. $150 is charged for the first half an acre to one acre, and $50 for any additional acreage thereafter. House Tax is also levied annually at the rate of 1.5% of the assessed annual rental value.
Building Permits
Development in the BVI is governed by Planning Guidelines which determine general policy. Upon approval by the Oil Nut Bay Architectural Review Committee, all plans are reviewed by, and subject to approval by, the Planning Authority and the Building Authority of the BVI.
Income Tax
For homeowners who are not ordinarily residents of the BVI, only income arising in the BVI (such as holiday rental income) will be taxable in the BVI. The tax is levied as a hotel accommodation tax of 7%.