Real Estate | Antigua and Barbuda
When one talks about the real estate market in Antigua and Barbuda, one has to think about island living. Antigua and Barbuda offers the opportunity of owning a slice of paradise and the lifestyle that goes with it. While this is what many real estate buyers are searching for, the potential for profit that such investment can offer is also a big part of the decision-making process.
Holding period of real estate: Minimum five years
Minimum real estate investment: USD 200,000
Type of ownership: Sole or shared ownership
Rental income opportunity: 2–5% on residential property
Are there any restrictions on the acquisition of real estate in Antigua and Barbuda by foreign buyers?
Foreign nationals require a non-citizen’s landholding license. However, if the client is applying for citizenship through the Antigua and Barbuda Citizenship by Investment Program, the license will not be needed.
How can immovable property in Antigua and Barbuda be acquired?
In the case of non-citizens, a landholding license needs to be acquired in order to purchase real estate. The other option is to acquire citizenship through the purchase of real estate in one of the premium real estate developments that Antigua has to offer.
Does the applicant need to open a bank account in order to purchase property, and if so, what is the procedure?
While it is not necessary for overseas investors to have a bank account on the island to purchase a property, it is advisable to open one once they have ownership in order to conduct business related to their property.
What additional expenses will the real estate transaction incur?
The purchaser is liable for the third-party legal transfer or closing fees of 1% of the purchase price. Additionally, they are responsible for the payment of the nation’s standard purchaser’s stamp duty at 2.5%.
What kind of returns can be expected from property investment in Antigua and Barbuda?
Under normal circumstances, the estimated revenue that can be expected is between 2.5 and 3%. (For most of 2020, however, this was not the case due to challenges that arose from the Covid-19 pandemic.)
How is rental income taxed?
The ABST tax, which is for short-term rental income, is at a rate of 15%.